Suit Says New Penn Financial Attempts to Collect Discharged Debts

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New Penn Financial, LLC (which does business as Shellpoint Mortgage Servicing, Inc.) is the defendant in a proposed class action lawsuit that claims it violated the Fair Debt Collection Practices Act (FDCPA) by attempting to collect on a debt that was discharged in bankruptcy. The plaintiff filed for bankruptcy in November 2011, and her mortgage was discharged, meaning she was released from “any and all personal monetary liabilities” on the loan, according to the suit. Despite the status of the loan, New Penn Financial allegedly attempted to collect on the discharged debt by sending the plaintiff letters and placing phone calls to her cellular phone. The complaint claims the defendant falsely implied to the plaintiff that she must continue her mortgage payments in order to continue living in her home, when she was legally permitted to stay until the mortgage lender foreclosed on the property.

The complaint further alleges that New Penn Financial violated the Telephone Consumer Protection Act by placing automated calls to the plaintiff’s cell phone without her consent.

The suit seeks monetary damages and injunctive relief to end the defendant’s “unlawful business practices.”