Ocwen Loan Servicing Facing Debt Collection Class Action

New to ClassAction.org? Read our Newswire Disclaimer

A husband and wife in Florida have filed a class action against Ocwen Loan Servicing, LLC over alleged violations of the Fair Debt Collection Practices Act (FDCPA). According to the 49-page complaint, the defendant falsely claimed to assign defaulted mortgage loans to Fannie Mae—a violation of the FDCPA—in order to bolster its claims for standing. Fannie Mae’s loan serving regulations, the complaint says, prohibit the assignment of defaulted loans, a rule the defendants are accused of repeatedly ignoring on a large scale.

The most important allegation dealt by the suit is that the defendant illegally tried to file a second foreclosure lawsuit against the plaintiffs after a previous lawsuit, filed by a non-party, was dismissed. Although this second foreclosure action is still pending, the lawsuit allegedly contains multiple FDCPA violations, chief among them naming the defendants in that suit “unknown tenants.” “Such process is as a matter of law a nullity,” this class action says, “making these charges important and, therefore, a violation of the FDCPA.”