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Home loan company Seterus has been hit with a class action lawsuit alleging it improperly collects fees from California residents who pay their mortgage online or by phone.
Lead plaintiff Martin Lemp alleges in his class action lawsuit that he and other California residents are charged a $5 or $10 fee each time they pay mortgages online or by phone. Seterus allegedly keeps a portion of the fee, violating California law.
“Seterus charged Plaintiff, and the rest of its customers in California, a fee for paying online or over the phone,” alleges the Seterus class action lawsuit. “Because Seterus retains a portion of this fee, it is illegal under California law.”
The plaintiff says that he entered into a mortgage on Aug. 7, 2015 that ended up being serviced by Seterus. Seterus qualifies as a “debt collector,” says the plaintiff, because it engages in debt collection practices by servicing mortgages like the plaintiff’s and proposed Class Members’.
“In each month between May of 2017 and the present, Plaintiff was charged a fee of either $10.00 (labeled REPPAY) or $5.00 (labeled WEBPAY) for making his payment over the phone or online,” alleges the Seterus mortgage class action lawsuit. “Seterus’s website admits that it charges the $5.00 for paying online, but does not mention the phone payment fee.”
Lemp says that he and other California residents whose mortgages are serviced by Seterus are charged a $5 fee when they pay online or a $10 fee when they pay by phone. Such fees are considered illegal convenience fees under California law, according to the Seterus home loan class action lawsuit.
“Seterus charged Plaintiff, and the rest of its customers in California, a fee for paying online or over the phone. Because Seterus retains a portion of this fee, it is illegal under California law,” states the Seterus mortgage class action lawsuit.
The plaintiff seeks to represent California residents who paid a convenience fee to Seterus in order to access the pay by phone or online features. Lemp alleges Seterus violates California’s Rosenthal Fair Debt Collections Practices Act.
“Convenience fees such as those charged by Seterus have been held unlawful and violate the Rosenthal Act when the debt collector retains any portion of the fee instead of passing the entire fee through to the payment processor,” alleges the Seterus mortgage fees class action lawsuit.
The plaintiff continues by arguing that the collection and retention of phone and online fees violates the “plain instruction” of the law.
“By charging the fees to pay online or over the phone, a portion of which it retains, Seterus acted in violation of the federal Fair Debt Collection Practices Act, which prohibits ‘[t]he collection of any amount (including any interest, fee, charge, or expense incidental to the principal obligation) unless such amount is expressly authorized by the agreement creating the debt or permitted by law,’” alleges the Seterus home loan fees class action lawsuit.
The plaintiff is seeking compensatory and statutory damages, as well as a declaration from the court that Seterus has violated California law by charging the convenience fee.
Lemp is represented by Andrew Wheeler-Berliner of The Berliner Firm, and John E. Norris and Dargan M. Ware of Davis & Norris LLP.
The Seterus Mortgage Convenience Fee Class Action Lawsuit is Martin Lemp v. Seterus Inc., Case No. 1:18-at-00362, in the U.S. District Court for the Eastern District of California, Sacramento Division.
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11 thoughts onSeterus Class Action Challenges Mortgage Online Payment Fees
My mortgage was assigned to Seterus several years ago. I am not in California; however, I distinctly remember them telling me if my mortgage was not received by the 10th of the month, I would incur a $5.00 fee. This was not disclosed in the terms of my mortgage when I closed on the property. I did receive a charge, but made sure it was paid and received by the company prior to this date on later payments.
I would like to join this class action.
I also have many other issues with Seterus.
They placed me in foreclosure with wrong amout owed and wrong amount of months behind. They placed forced insurance on me when i already had one in place that wasn’t due to be renewed for 6 months this also increased my payment. They didn’t allow me to make payments with western union unless it was full amount (incorrect amount) owed. This eventually put me in foreclosure by making me appear to be more behind. I disputed amount owed and not being allowed to pay due to refusal of tender. they wouldn’t allow payments online unless amount was full amount owed. Therefore if i had to make two separate payments with two different forms of payment i wasn’t allowed to make payment. They sold my loan to Mr. copper who modified my loan but only offered me a forty year on a loan with a balance of 130.000 owed which was completed in oct. 2019 and they still havent removed my notice of default or mailed me a copy of my loan docs signed. All the mortgage companies are corrupt and they know they can get away with it. There are many laws in place but no regulators to enforce them. Even the foreclosure review didnt compensate us the victims for loss of our homes. They basically fixed it by self sabotage so they wouldnt have to do anymore reviews and just split what ever money that was left from settlement between everyone . so we recieved 800 for our homes. We were initially told we would get 125k ++++ and wouldnt give up our right to sue by accepting settelments. This left them wide open for lawsuits which already had all the proof needed from review findings. Every ambulance chasing attorney would have had there work done for them and the case already won. So they deliberately made reviews compromised by answering review questions themselves and having reviewers sign. Then they told on themselves to stop all further reviews from taking place. So we wouldn’t have proof of wrong doing to pursue damages. They new they were federally insured and the government needed the banks not to fail so they let them get away with it. oh and they also used our money to help government deficit and never paid us back. No one has held them accountable as of yet. I dont think they ever will. I used to believe in my rights and stood up for them always. Now I have little faith in my so called rights being enforced.
Seterus is the worst mortgage servicer in the universe. The fact that there have been so many complaints reported concerning their unethical,dishonest , corrupt, predatory business practices , absolutely horrible customer service ,and life destroying treatment of those home owners who were at their mercy and nothing has been done to fix the system or hold Seterus accountable is a disgrace. I am not a weak person and tried to stand up for my rights but the more I tried the worse I was treated. Never felt so powerless
I am a California resident and I have also been charged fees for making payments online. I would like to join this lawsuit.
I am a CA resident and they have been charging extra fees almost every month. I have wrote letter and have been calling they them. No one can explain these extra fee. Now they are tranfering the loan this month. I would like to get back some of these fees.
How Can I Be Part Of This Lawsuit???
Why only California residents, when Texas residents from Chase Bank sold to Seterus?
I have thousands ! of dollars in made up fees. Lest you think I’m looney, I’ve been listed in Who’sWho in finance and have an mba! These folks are the worst!
Seterus should be held accountable and have this class action extended to all 50 states. Their practices are fraudulent – this is only the tip of a huge iceberg. They quoted me $30.00 over phone payment. Not a CA. resident but hopefully this will become nationwide.
They have also failed to respond to my request for “Qualified Written Request” under RESPA; failed to post payments and lied to me to many times to mention.
I was just charged $10 myself for paying our the phone. I was out of the country for a family emergency and had to send a post dated check. Basically I send them the payment, on time, yet I a charged late fee and $10 for paying over the phone after my return. Scrupulous and unethical. I am just trying to do the best to pay every month and they will find any excuse to rob me of more money. They ar setting you up to fail o matter what you do.
Cricket phone company charged $ 3 to pay your bill in cash. PGE charged for years to pay your
Electric bill by phone.
Please let me know if you settle this as they h as be been charging me these fees for years even though I told them it’s not legal in CA.