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Two homeowners say Quicken Loans has been getting away with overcharging interest on home loans insured by the Federal Housing Authority.
Plaintiffs Kristen Rogers and Claire Davis claim defendant Quicken Loans has improperly collected hundreds of millions of dollars in excess interest by failing to make a mandatory disclosure required by the Federal Housing Authority.
This alleged lack of disclosure has caused tens of thousands of borrowers to overpay their loans by paying interest improperly applied to periods after the principal was paid off, the plaintiffs claim.
According to Rogers and Davis, post-payment interest is interest that a lender collects after the borrower has paid off the principal in full. This collection can happen when, for example, the borrower finishes paying the principal in the middle of a calendar month, yet the lender collects interest for the entire month. The interest linked to the remainder of the month after the borrower’s payment would be considered post-payment interest.
Rogers and Davis argue that the collection of such post-payment interest is contrary to the uniform provisions that the FHA requires to be included in promissory notes for FHA-insured loans. These provisions allow interest to be charged on unpaid principal, but they also require interest charges to stop once the full principal amount has been paid, the plaintiffs say.
As an exception to that rule, lenders may be allowed to collect post-payment interest for the remainder of the final month of payment if the borrower makes the final payment on a day other than the first of the month and if the lender provides the borrower with an FHA-approved form that asserts the lender’s right to collect post-payment interest.
The plaintiffs say Quicken Loans doesn’t bother to use this FHA-approved form. They accuse Quicken Loans of removing material information from this form.
The resulting form “does not fairly disclose to borrowers that it is in their best financial interest to make a payment for the full unpaid principal on the first of the month,” the plaintiffs say. By failing to properly inform their borrowers, the plaintiffs claim, Quicken Loans has collected “hundreds of millions of dollars in post-payment interest.”
Rogers and Davis seek to represent a plaintiff Class consisting of all persons who held a loan that financed real property in Georgia, that was insured by the FHA between Aug. 2, 1985 and Jan. 20, 2015, that was held by Quicken Loans on the day the full principal was paid, and on which Quicken Loans collected interest for any period after the date the principal was paid.
They are asking the court to award compensatory and statutory damages, attorneys’ fees and court costs, all with pre- and post-judgment interest, along with any other relief the court deems appropriate.
The two plaintiffs are represented by attorneys Archie I. Grubb II, W. Daniel “Dee” Miles, Andrew E. Brashier and Rachel E. Boyd of Beasley Allen Crow Methvin Portis & Miles PC, and Matthew Q. Wetherington, Michael L. Werner and Robert N. Friedman of The Werner Law Firm.
The Quicken Loans Overcharged Interest Class Action Lawsuit is Kristen Rogers and Claire Davis v. Quicken Loans Inc., Case No. 1:17-cv-01781, in the U.S. District Court for the Northern District of Georgia.
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25 thoughts onQuicken Loans Class Action Says Borrowers Charged Excessive Interest
My husband and I have Quicken Loan’s Account for our home mortgage as well. We are in Alabama so not sure if this applies to us but if so please add our name to this class action.
You are all correct this suit is in another state,BUT if u feel you have been taken advantage of or ripped off in anyway this site has a little “file your own claim button” you CAN START YOUR OWN ACTIONS N UNTILL EVERYONE DOES THESE PEOPLE WILL CONTINUE TO SCREW WHOMEVER THEY CAN!!!!!!
We have quicken loans for a few years, how can we sign up.
What about title loans i’ve been paying loan for a while i have payed off twice and still paying on it they tell me i amm paying the interest i oly borrow 2000 dollars have already paid over 3000 dollars and still owning the same thing i am diable living on a fixed income cant afford to keep paying all of my money and still owning the same thing are there any advice u can give me if so i would really appreciae it
What about title loans
I absolutely want contacted ee have done 2 mortgages with quicken and are refinancing right now
How do I get contact information for the attorney(s) or firm(s) responsible for this class action?
My wife and I had an FHA Loan through QL for our home in Maryland. We did a “streamline refinance” to another FHA loan with QL, and closed in late February of 2013. I don’t recall signing any form mentioning “post-payment insurance,” (a concept that sounds sketchy and illegal to me anyway) either on paper or by electronic means, at either the original closing or the refinance closing. The new FHA loan would have paid off the principal of the original FHA loan, right? Or, am I misunderstanding how refinancing works?
Why is this only applicable in the state of Georgia? It would seem to me that a violation of FHA rules would make this applicable nationwide, as the FHA is a federal agency, and FHA loans are offered in all 50 states and DC, and QL makes loans in all 50 states and DC.
I remember someone from QL making a big deal to me over the phone about scheduling the refinance closing as late in the month as possible, because “whether you close on the 1st of the month or the 30th of the month you still owe the interest for that entire month, so we want to close as close to the end of the month as possible so you don’t waste any money.” Since it’s about six years later, I don’t recall who I spoke with, nor do I recall the exact details of the conversation.
I’m not sure how I would be able to tell if QL collected any post-payment interest, either outright, or by rolling it into the new loan or its closing costs.
My loan was refinanced via quicken loans so it was paid off and then quicken loans picked up the loan from BoA at that point on am I entiled to claim. mstubbs007@att.net
As soon as you started seeing Quicken pop up on TV ads you know its all over. Quicken was one of the highest interest rates I was quoted.
Yes you are absolutely right. We were quoted several high fees and high APR. So we walked away from them. It seems anything dealing with the government spells rip off in some form, so way. They want to get paid at your expense and the government.
How can I sign up for this lawsuit? We have had Quicken Loans for years!
you only qualify Misti if your loan was paid off while at quicken and you live in GA. otherwise, you don’t qualify. this isn’t for anyone that ha a quick loan..only those that paid their loan off and quicken charged after loan payoff interest.
How do I sign up for this lawsuit? I have used Quicken Loans once, maybe twice, in the past.