Ocwen Debt Collection Lawsuit Filed in Federal Court

An Ohio resident filed a Fair Debt Collection Practices Act (FDCPA) lawsuit against Ocwen Loan Servicing LLC and Residential Credit Solutions Inc., alleging his requests for information about recurring fees were ignored.

Plaintiff Craig P. brought the FDCPA lawsuit out of the fear that the two loan companies would try to foreclose on his various properties after the companies allegedly failed to adequately investigate and respond to Craig’s requests for information pertaining to various fees that appeared on Craig’s mortgage statements.

Craig owns several properties in Ohio, two of which are in Cleveland and have loans serviced by Ocwen. A third property in Lakewood has a loan serviced by RCS.

Last spring, Craig began receiving mortgage statements from Ocwen that reflected he owed late fees on the Owcen property mortgages, according to his debt collection lawsuit. With the belief that all his past payments had been made on time, Craig requested Ocwen send him a loan payment history for the duration of the loan.

According to Craig, although Ocwen initially responded to his inquiry, the company did not provide any specific information relating to the late payments.

According to the FDCPA lawsuit, similar events occurred with Craig’s RCS mortgage. Early in 2014, Craig said he was notified by RCS that a force-placed insurance policy had been implemented on his property due to a believed lapse in insurance coverage.

Craig immediately gave RCS proof of coverage and the force-placed insurance policy was canceled. Craig alleges that although the issue should have been settled, he continued to receive statements showing the force-placed insurance charge was being assessed.

Craig’s unfair debt collection lawsuit said he requested RCS provide him with a complete a loan history and various other documents relating to the charges but he never received acknowledgement of his correspondence.

Under federal law, when a request for information is sent from the borrower to a creditor or loan servicer, like Ocwen and RCS, the servicer must investigate the dispute and either correct the account or provide an explanation as to why no corrections will be made. Craig alleges that Ocwen and RCS violated the FDCPA by failing to investigate and respond to his information requests. Craig’s FDCPA lawsuit alleges violation of federal law, breach of contract, fraudulent misrepresentation and conversion.

Overview of the FDCPA

The FDCPA was passed in 1978 in order to curb unfair debt practices used by many creditors and debt collectors. Congress created these rules to help empower consumers. The FDCPA allows consumers to challenge creditors, and determine the validity of the debts asserted against them.

Creditors and debt collectors who violate the FDCPA can be subject to  statutory fines plus compensation for any amount of actual damage the consumer suffered.

Debt collection is not illegal, but debt collectors must adhere to the FDCPA when collecting consumer debt. A consumer debt attorney can help consumers determine whether the FDCPA has been violated and whether a claim should be pursued.

This FDCPA Lawsuit is Case No. 15-CV-137, in the U.S. District Court for the Northern District of Ohio.

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).

Get a Free Case Evaluation Now

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.