A Fair Debt Collection Practices Act lawsuit (FDCPA) has been filed by an Illinois resident against Nationstar Mortgage LLC alleging the debt collection corporation employed unfair debt collection practices against him.
Plaintiff George W. Duff alleges he purchased a property in 2003 for his family consisting of his wife and two children. According to the FDCPA lawsuit, “at the time, Duff executed a first lien mortgage loan in favor of Quicken Loans, Inc. secured by the subject property. Thereafter, servicing rights were transferred to Bayview Loan Servicing.”
In March 2007, Duff claims he took out a second lien mortgage through Countrywide Bank, a mortgage company whose service rights were later acquired by Bank of America.
A few years later, in 2012, Duff allegedly experienced a temporary reduction in income, which later led to him defaulting on his loan serviced by Bank of America during May 2013. A couple months later, the servicing rights for Duff’s loan transferred from Bank of America to Nationstar.
According to the Nationstar unfair debt collection lawsuit, in August of the same year, Duff claims he “submitted a loan modification package to Nationstar. Duff also submitted proof that his first lien mortgage was contractually current. After eight months of submissions and resubmissions, Nationstar approved Duff for a trial loan modification.”
This loan modification allegedly required Duff to make three consecutive payments of $125.59 in May, June, and July of 2014. If these payments were made, then per the trial loan modification agreement, Duff’s mortgage would be permanently modified. Duff claims that he made the three payments on time and complied with all the terms of the loan modification.
However, the FDCPA lawsuit alleges, “Notwithstanding the foregoing, on June 30, 2014, Nationstar issued Duff a letter that ignored the loan modification and the three timely payments. Instead, Nationstar attempted to accelerate the debt.”
The same letter allegedly falsely stated Duff did not make the three payments on time, was past due on over $2,600, and further threatened to foreclose on Duff’s family home. After several months of attempting to resolve the problem directly with Nationstar, Duff eventually filed this unfair debt collection lawsuit.
In this Nationstar FDCPA lawsuit, Duff brings several allegations against the mortgage servicer including: breach of contract, three claims of violations of the FDCPA, violation of Illinois consumer fraud act, and violation of the real estate settlement procedures act.
The Nationstar FDCPA Lawsuit is Duff v. Nationstar Mortgage LLC, Case No. 1:14-cv-08922, in the U.S. District Court for the Northern District of Illinois.
What is the Fair Debt Collection Practices Act (FDCPA)?
In 1978, Congress passed a set of laws known as the Fair Debt Collection Practices Act (FDCPA) to restrict unfair debt collection practices allegedly committed by creditor and debt collectors.
Debt collection as a business is not illegal, but debt collection companies must follow protocol and respect borrowers’ rights. These rights are outlined and protected by the FDCPA.
According to the FDCPA, unfair debt collection practices that infringe on the rights of the consumer include:
- Debt collection harassment
- Telephone harassment
- False statement and deceptive practices
- Collection of debts not owed by the consumer
- Collection of expired debts
- Improper reporting of the debtors loan to credit reporting agencies
- Refusing to cease communication even under request
- Improper communication between the lenders and other third parties
Duff and his family are not the only mortgage holders who have filed a debt collection lawsuit against a loan service or debt collector. Over the past few months, dozens of individuals have filed FDCPA lawsuits or joined FDCPA class action lawsuits against companies who allegedly use unfair debt collection practices to the detriment of homeowners.
Join a Free Unfair Debt Collection Class Action Lawsuit Investigation
If a lender or debt collector engaged in unfair debt collection practices, you may have a legal claim and could be owed compensation for violations of the Fair Debt Collection Practices Act (FDCPA).
DISCLAIMER: Debt collection itself is not illegal. However, debt collection firms collecting on consumer debts must adhere to the FDCPA. Even though debt attorneys are investigating these companies, their debt collection practices may be legal.
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22 thoughts onNationstar Mortgage Hit with Debt Collection Lawsuit
I see Mr. Cooper formerly known as Nationstar is still in the unfair debt collection practices. No bank should be allowed to add the passed due paymemts on the backend of the rate modification as (new money) wirhout adjusting the passed due balance. Clearly, these banks are aware the passed due paymemts are already in the balance forward. This bance represents amount owed since last payment. The unfair detriment to homeowners continues to go unnoticed. What should happen, the banks should reinstate the mortage under the new terms without adding the new money to inflate the balance owed.
I see Mr. Cooper formerly known as Nationstar is still in the unfair debt collection practices. No bank should be allowed to add the passed due paymemts on the backend of the rate modification as (new money) withoit adjusting the passed due balance. Clearly, these banks are aware the passed due paymemts are already in the balance forward. This bance represents amount owed since last payment. The unfair detriment to homeowners continues to go unnoticed. What should happen, the banks should reinstate the mortage under the new terms without adding the new money to inflate the balance owed.
They are back at it…even after being sued! My mortgage was sold by BoA to these crooks, and I am following the same payment plan as I was through BoA…1/2 on the 1st of the month and 1/2 on the 15th (Military). I get harassing calls AND emails from the 2nd of the month until they receive the other half on the 15th. My payment isn’t even considered late until the 17th!! Funny, I already received the meager $35 and change from the FIRST lawsuit against this “Company”, and now they are doing the same thing they got sued for.
I am having the same issue. My mortgage was sold by BoA also and I HATE that they sold it to NationStar. They start calling and emailing me on the 8th, even though the email says the payment is not considered late until the 17th. My bill is always paid by the 15th, yet they call SEVERAL times a day as if my payment is already overdue. In all my years, no other company has every done this type of “harassment” on a bill that is not even late. I called them to ask why and they claim this is just a courtesy call, but I find this very annoying, and what is more disturbing is that they are also a debt collection agency. I found this out when I called them, which initially scared me, but they assured me all was well. Still, I wish they would stop with the harassment!
Nationstar has called my husband numerous times. This company put one of our mortgage payments in a suspense account and now they are saying that we are a payment behind. They are charging us late fees for an action they took without our consent! Nationstar has raised out payment twice in 2 years. Something is wrong with this company! They may have reported “late payment(s)” to the credit union. Our credit history shows that we have never missed a payment on prior mortgages and we didn’t miss a payment with this ripoff company. My husband and I will meet with a lawyer again this week.
I am wanting information on the law suit for harassing phone calls.
Nationstar sent me a letter today stating that there was a delay in the processing of our modification so they are mailing us a check for $500 *…to account for any inconveniences this delay may have caused.* And for us to, *Simply cash the check to use as you wish.* Something is fishy about this. I bet they have been forced to pay way more than $500 for modification delays, in class action lawsuits, so they are offering $500 in hopes we take it and give up our right to sue them in the future. I don’t plan to cash that check until our modification is fully complete. They aren’t exactly trust worthy.
Check out Braynen vs. Nationstar it shows how Nationstar display a pattern of unfair debt collection practices. Call your local legal aid in your home town, have all your paper work to justify your claims, most likely legal aid will be able to help you
Check out Braynen vs. Nationstar it shows how Nationstar display a pattern of unfair debt collection practices. Call your local legal aid in your home town, have all your paper work to justify your claims, most likely legal aid will be able to help you. Do not miss a payment, make sure everything is documented.