Federal Judge Approves Mortgage Investors Corporation’s $7.4M TCPA Settlement

An Oregon federal judge has given the final green light to a $7.4 million dollar TCPA settlement withMortgage Investors Corporation, one of the nation’s leading refinancers of veterans’ home loans.

The lender will set aside a $7.4 million for over 3 million potential settlement Class Members for allegedly violating the Telephone Consumer Protection Act (TCPA).

Two plaintiffs filed the TCPA lawsuit alleging that Mortgage Investors Corporation (MIC) made millions of unsolicited phone calls to veterans marketing refinancing options for their home loans.

The plaintiffs also alleged that they received multiple, harassing telephone calls even though their telephone numbers were on the National Do-Not-Call Registry, and they did not provide prior consent to receive these telemarketing calls.

According to the TCPA class action lawsuit, Mortgage Investors’ telemarketers called more than 5.4 million numbers listed on the National Do Not Call Registry to offer home loan refinancing services to current and former U.S. military consumers in violation of the TCPA.

The telemarketers also allegedly led service members to believe that low interest, fixed rate mortgages were available at no cost, often quoting rates that they implied would last the duration of their loan.

In reality, Mortgage Investors only offered adjustable rate mortgages in which consumers’ payments would increase with rising interest rates and would require consumers to pay closing costs.

In addition, Mortgage Investors allegedly misled consumers about their affiliation with the Department of Veterans Affairs (VA).

U.S. Magistrate Judge Janice M. Stewart said, “For the reasons stated by plaintiffs in their motion… including lack of any objection by any class member, this court concludes that all factors strongly favor final approval of the settlement agreement.”

Part of the TCPA settlement will cover $1.8 million in attorneys’ fees and $5,000 incentive fees to the two lead class representatives and stipulated that unclaimed funds will be allocated to Veterans Airlift Command, a not for profit charitable organization as well as a consumer advocacy organization, Consumer Federation of America.

Additionally, the defendant is barred from denying consumers’ future requests to be placed on entity specific Do Not Call lists; calling consumers on the National Do Not Call Registry; misrepresenting any terms related to mortgage credit products including rates, closing costs, fees, interest, and savings; and misrepresenting its affiliation with any government entity or organization including the VA.

About the TCPA

The TCPA became law in 1991, putting restrictions on automated calls and prerecorded messages (for both debt collection and telemarketing purposes). The TCPA also now regulates automated text messaging. In most circumstances, an entity must have a person’s prior express consent in order to make automated or prerecorded calls or text messages.

This means that Federal law protects you from telemarketing harassment by companies like Mortgage Investors Corporation and other telemarketers. Under the Telephone Consumer Protection Act (TCPA) telemarketers can be liable to you for between $500 and $1500 per call if it calls after you tell them to stop calling.

If you have received or are receiving unsolicited robocalls or texts, you may be eligible for compensation under the Telephone Consumer Protection Act and an experienced consumer protection attorney can explain your legal rights.

The Mortgage Investors Corporation TCPA Class Action Lawsuit is Ott v. Mortgage Investors Corporation of Ohio Inc. et al., Case No. 3:14-cv-00645, in the U.S. District Court for the District of Oregon.

Join a Free TCPA Class Action Lawsuit Investigation

If you were contacted on your cell phone by a company via an unsolicited text message (text spam) or prerecorded voice message (robocall), you may be eligible for compensation under the Telephone Consumer Protection Act.

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