Shellpoint Mortgage Servicing Facing FDCPA Class Action

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The operating company of Shellpoint Mortgage Servicing, Inc., New Penn Financial, LLC, is on the receiving end of a proposed class action that claims the company violated the Fair Debt Collection Practices Act (FDCPA) and the Florida Consumer Collection Practices Act (FCCPA). The 20-page lawsuit alleges the defendant, a Pennsylvania-based mortgage loan servicer, collected money from the plaintiff and proposed class members over a “non-existent debt,” specifically one that had been discharged due to the plaintiff’s declaration of bankruptcy.

From the lawsuit:

“By billing [the plaintiff] and others similarly situated, [the defendant] attempted to collect a debt which had been discharged. [The defendant’s] communications that asserted [the plaintiff] owed a debt based on the mortgage loans, including a notice of intent to foreclose, monthly mortgage statements, a loan modification package, and a delinquent tax notices violates [the FDPCA], which prohibits the use of false, deceptive, or misleading representations in connection with the collection of a debt.”