ACI and Nationstar ACH $10.55M class action settlement

ACI Payments, Nationstar Mortgage and others have agreed to a $10.55 million class action settlement to resolve claims of incorrect automated clearing house (ACH) debits on accounts related to Nationstar mortgages.

The class consists of anyone in the United States whose mortgages were or are serviced by Nationstar, and who were subjected to the incorrect debit incident.

ACI and its vendors are accused of inadvertently causing incorrect ACH debit and credit entries to borrowers’ bank accounts on mortgage loans serviced by Nationstar Mortgage between April 23 and 26, 2021. The plaintiff accused the companies of violating the Fair Debt Collection Practices Act and the Electronic Fund Transfers Act, and alleges negligence and violation of numerous state-specific laws.

Nationstar Mortgage is now called Mr. Cooper and has more than 9,000 employees nationwide while working with 3.8 million homeowners. ACI Worldwide employs 4,000 with offices in 23 countries and $1.42 billion in revenue in 2022.

Three funds have been established under the terms of the ACH settlement.

Each valid claimant is expected to receive $100 out of the $5 million Fund A unless they already received that amount from ACI or Nationstar as an overpayment. If the number of claimants exceeds the cap, the payments will lower. Attorneys’ fees, administration costs and other expenses will be deducted from this fund.

Fund B will consist of $1 million to reimburse valid provable claims of damages, including out-of-pocket expenses or losses from the incident. There is no cap on the amount of Fund B claims.

Fund C is an additional $500,000 that could go to claimants based upon participation rates in the $5 million Fund A. 

The defendants are forgiving and waiving their rights to recover $2,860,000 in overpayments they made to approximately 1,200 class members during the incident, as well as $190 in damages payments made by Nationstar to class members.

ACI also has agreed to implement changes to its business practices to prevent similar ACH issues in the future; this non-monetary relief is valued at $1 million.

The exclusion and objection deadlines have passed.

A final fairness hearing in the ACH settlement was held May 31, 2023

The claim form deadline is Nov. 13, 2023.

Who’s Eligible

Anyone in the United States whose mortgages were or are serviced by Nationstar, and who were subjected to the incorrect debit incident.

Potential Award

Varies

Proof of Purchase

For Fund B claims: Copies of documents and proof establishing all unreimbursed damages the class member suffered as a result of the incident.

Claim Form

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Claim Form Deadline

11/13/2023

Case Name

Dugan, et al. v. Nationstar Mortgage LLC, et al., Case No. 1:21-cv-00341-TDS-JEP, in the U.S. District Court for the Middle District of North Carolina

Final Hearing

05/31/2023

Settlement Website

ACHLoanPaymentLitigation.com

Claims Administrator

ACH Litigation Settlement Administrator
1650 Arch Street, Suite 2210
Philadelphia, PA 19103
[email protected]
855-645-0554

Class Counsel

Norberto J Cisneros
MADDOX & CISNEROS LLP

Marc E Dann
DANNLAW  

George Haines 
FREEDOM LAW FIRM LLC

Scott C Harris
MILBERG COLEMAN BRYSON PHILLIPS GROSSMAN PLLC

Michael Kind
KIND LAW

Edward H Maginnis
MAGINNIS HOWARD

Joel R Rhine
RHINE LAW FIRM PC

Thomas A Zimmerman Jr.
ZIMMERMAN LAW OFFICES PC

Defense Counsel

John Vogt
JONES DAY