Chase Mortgage Bogus Late Fee Class Action Lawsuit

A federal class action lawsuit claims Chase Home Finance is making millions of illicit dollars a year by charging homeowners bogus late fees on their mortgage payments.

According to the Chase late fee class action lawsuit, mortgagers have until the 16th of the month to make a full monthly payment without being charged a late fee.

“As a matter of course and policy, however, Chase systematically and regularly imposes late charges upon payments received by Chase that were actually paid on time,” the Chase mortgage class action lawsuit states.

The Chase late fee class action lawsuit further claims that when a wrongful late fee is charged, “Chase pays itself the late charge out of the then-current full monthly payment for the succeeding month, the latter payment is then deemed to be ‘short’ by Chase, and a portion of each ensuing payment is used for the prior month’s wrongful late charge, perpetuating a continuing series of late charges, all emanating from the initial, and subsequent, wrongful late charge.”

The Chase Home Finance class action lawsuit is brought on behalf of all persons in the United States whose mortgages are, were or have been serviced by Chase, and who were charged a late fee when, in fact, their monthly mortgage payment was made on time and prior to the time when late charges may be lawfully andor contractually imposed. It is seeking compensatory damages, restitution and statutory damages for Class Members, as well as a Court order prohibiting Chase from charging wrongful late fees in the future.

A copy of the Chase Mortgage Bogus Late Fee Class Action Lawsuit can be read here.

The case is Kenneth Dragos v. Chase Home Finance, LLC, U.S. District court, Eastern District of Pennsylvania.