Nationstar ACH $5M class action settlement

Update:

• The court granted this settlement final approval on June 6, 2023.

• Let Top Class Actions know when you receive a check in the comments section below or on our Settlements & Payouts Facebook group.

Nationstar agreed to a $5 million litigation settlement to resolve a class action lawsuit claiming the company sent incorrect automated clearing house, or ACH, entries to mortgage borrower bank accounts in April 2021.

The settlement benefits consumers whose mortgages were or are serviced by Nationstar and who were affected by the incorrect ACH debit and credit entries sent April 23, 2021.

In April 2021, mortgage borrowers with loans serviced by Nationstar allegedly experienced incorrect ACH debit and credit entries on their bank accounts. These inaccurate entries allegedly caused consumers to overpay on their mortgages and sustain other financial damages.

Nationstar, now known as Mr. Cooper, is a mortgage lender and servicer. ACI, another defendant in the case, is an ACH clearing company.

Nationstar and ACI haven’t admitted any wrongdoing but agreed to a $5 million mortgage borrower class action lawsuit settlement to resolve the ACH claims.

Under the terms of the ACH settlement, class members can receive a cash payment. The settlement guarantees payments of at least $100 for all class members but allows claimants to seek additional compensation for unreimbursed out-of-pocket expenses they sustained as a result of the ACH incident.

Class members whose overpayment was already reimbursed may have their payments reduced. The $100 payments may also be reduced depending on the number of approved claims.

In addition to providing cash payments, Nationstar and ACI agreed to forgive any entitlement they may have to recover from class members. This includes $2.86 million in overpayments and around $190,000 in damages.

ACI agreed to implement several business practices to prevent future ACH incidents. These changes are valued at $1 million.

The deadline for exclusion and objection is April 29, 2023.

The final approval hearing for the Nationstar mortgage borrower ACH settlement is scheduled for May 31, 2023.

In order to receive settlement benefits, class members must submit a valid claim form by Nov. 13, 2023.

Who’s Eligible

Consumers whose mortgages were or are serviced by Nationstar and who were affected by the incorrect ACH debit and credit entries sent on April 23, 2021.

Potential Award

Varies

Proof of Purchase

Documentation of out-of-pocket expenses.

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, in the U.S. District Court for the Middle District of North Carolina.

Final Hearing

05/31/2023

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

MCGUIRE WOODS LLP
JONES DAY