Mr. Cooper, Nationstar Faces Class Action Over Thousands of Unauthorized Mortgage Payments

Mr. Cooper, Nationstar Mortgage Class Action Lawsuit Overview:

• Why: The plaintiff takes issue with Nationstar’s alleged history of making unauthorized withdrawals from customers’ bank accounts.
• Who: A Nationstar customer is suing the mortgage servicer, also known as Mr. Cooper.
• Where: The class action lawsuit is pending in Texas federal court.

Mr. Cooper, also known as Nationstar Mortgage, is facing a class action lawsuit lodged by a North Carolina resident for allegedly making several unauthorized withdrawals from her bank account and failing to adequately investigate or fix the issue. 

The lead plaintiff is Martha Keen Stovall, whose mortgage payments are serviced by Mr. Cooper. On three separate occasions in 2017, 2020, and 2021, Nationstar Mortgage made unauthorized and improper payments from Stovall’s bank account. 

Stovall seeks to represent three nationwide classes and three North Carolina subclasses. These include individuals ​​whose residential mortgage loan servicing rights were held by Nationstar and covers Nationstar’s unauthorized electronic fund transfers in April 2021, duplicate electronic funds transfers, and improper payment processing.

The complaint alleges that Mr. Cooper improperly withdrew money from nearly half a million people in the United States. Mr. Cooper’s negligence led to significant overdraft fees for customers, left borrowers with reduced (or zero) purchasing power, and emotional distress, anxiety, and worry.

The class action lawsuit accuses Mr. Cooper, also known as Nationstar, of negligence and violating several lending and banking laws by “repeatedly” and “unlawfully” collecting “tens of thousands of unauthorized mortgage loan payments.” The complaint also briefly accuses Nationstar of unfairly making money off of these unauthorized withdrawals by accruing interest on them.

Mr. Cooper, Nationstar Has History of Unauthorized Payments, Claims Class Action 

Stovall first experienced a payments issue with Mr. Cooper in March 2017 when the company took an unauthorized payment from Stovall’s account in addition to her usual monthly payment. This payment was later returned to Stovall. 

In November 2020, Mr. Cooper made two withdrawals from Stovall’s account — one for her November payment and one credited towards her December payment, which was not due for another month. Stovall contacted Nationstar to correct the error and to ensure it didn’t happen again, both of which Nationstar “failed to do,” according to the complaint. 

In April 2021, Nationstar took three unauthorized payments from Stovall’s bank account after already taking her monthly mortgage payment for April. The company later reversed these payments and sent a letter to Stovall stating that the company had “launched a full investigation to get to the bottom” of the payments issue. 

In total, around $2,066 was taken from Stovall’s account without her authorization. She seeks actual, statutory, and punitive damages, injunctive relief, and litigation expenses.

Do you have a mortgage serviced by Nationstar or Mr. Cooper? Have you experienced similar payment errors from your mortgage servicer? Tell us about it in the comments section below!

The plaintiff is represented by John D. Blythin and Jesse Fruchter of Ademi LLP.

The Nationstar Unauthorized Withdrawals Class Action Lawsuit is Stovall v. Nationstar Mortgage LLC d/b/a Mr. Cooper, Case No. 3:21-cv-02735-X, in the U.S. District Court for the Northern District of Texas Dallas Division.

Read About More Class Action Lawsuits & Class Action Settlements:

• RBank of America Targets, Restricts, Closes Accounts of People of Iranian Descent, Says Class Action
• Bank of America Cardholders Seek Class Certification in ‘Tricky’ ATM Fee Class Action Lawsuit
• $10M Massage Envy Class Action Settlement Tossed for Fees
•  Mortgage Fees $662K Class Action Settlement