Lawsuit Investigation: Did Selene Finance Send False and Misleading Loan Acceleration Letters?
Last Updated on July 2, 2025
Investigation Complete
Attorneys working with ClassAction.org have finished their investigation into this matter. Check back for any potential updates. You can also sign up for our free newsletter for the latest in class action news and settlements.
If you still have questions about your rights, contact an attorney in your area as there is a time limit for filing all lawsuits. The information on this page was posted when the investigation began and is now for reference only.
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At A Glance
- This Alert Affects:
- Anyone who fell behind on mortgage payments and then received a letter from Selene Finance concerning their non-payment.
- What’s Going On?
- Attorneys working with ClassAction.org have reason to believe the company sent out letters that may have falsely implied that homeowners’ loans would be accelerated – meaning the full amount of the mortgage would be due – if they failed to pay the money they owed within a certain time frame. A copy of these letters can be seen below.
- How Could a Lawsuit Help?
- If filed and successful, a class action lawsuit could help consumers recover money for Selene’s letters and force the company to stop including potentially misleading statements in its notices.
Attorneys working with ClassAction.org would like to hear from homeowners who received a letter from Selene after falling behind on their mortgage payments.
They have reason to suspect that Selene may have sent letters containing potentially false and misleading statements intended to intimidate borrowers into making immediate payments. The attorneys are now looking into whether a class action lawsuit can be filed against the mortgage servicer over possible violations of federal debt collection law.
What Did These Letters from Selene Look Like, Exactly?
A copy of one of the letters can be seen below.
What Could Be the Issue with These Letters?
In the letters at issue, Selene suggests that it will accelerate a homeowners’ mortgage loan and/or initiate foreclosure proceedings if they fail to fully cure their default by a particular deadline. If Selene accelerates a loan, the borrower must immediately pay the entire mortgage loan.
However, attorneys believe Selene may have no intention of taking the measures represented in its letter. Rather, it’s possible that Selene may have made false and misleading threats to scare homeowners into paying their delinquent balances, even if such payments are beyond what’s necessary for the homeowner to avoid acceleration or save their home from foreclosure.
Attorneys are now investigating whether Selene made false statements to borrowers in violation of the Fair Debt Collection Practices Act (FDCPA), a federal law prohibiting debt collectors from using false representations or deceptive means in an attempt to collect debt from consumers. It is also unlawful under the FDCPA for a debt collector to threaten to take action it does not intend to take.
How Can a Class Action Help?
If filed and successful, a class action lawsuit could help homeowners who received loan acceleration letters to collect money for any possible violations. It could also require the company to stop including any potentially misleading statements in its notices.
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