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One of the country’s largest mortgage servicers has allegedly been taking extra mortgage payments from customers’ accounts without their permission, a new class action lawsuit claims.
Plaintiff Brett Padalecki filed the class action lawsuit against Nationstar Mortgage, doing business as Mr. Cooper, in a Nevada federal court Friday.
Padalecki says Nationstar — which processes borrower payments, administers loss mitigation processes, and manages foreclosures — violated multiple federal and states laws in its processing of customer mortgage payments.
In his case, Padalecki says Mr. Cooper withdrew, without authorization, two additional mortgage payments from his bank account in April this year.
He says he had already made his monthly mortgage payment, and was not signed up for Mr. Cooper’s AutoPay. Padalecki says he disputed the withdrawals with his bank.
“As a result of these unauthorized transfers, Plaintiff suffered damages including but not limited to the loss of the availability of the money, emotional distress from his checking account being drafted without permission and having to demand Defendant correct its errors.”
Padalecki is looking to represent anyone in Nevada whose mortgage loan servicing rights were transferred to Nationstar and who had executed an electronic funds transfer authorization with their prior servicer, and then had “inconsistent” payments taken by Nationstar that they had never agreed upon.
The class action lawsuit alleges Nationstar violated the Electronic Fund Transfer Act (EFTA) because it initiated electronic transfers on Padalecki’s bank account that were not consistent with the electronic funds authorization he had with the company.
It also says Nationstar violated the Nevada Deceptive Trade Act through falsely representing that it had permission to withdraw money from Padalecki’s account.
The class action alleges Nationstar was negligent through its failure to address customers’ claims of fraudulent and unauthorized transactions on their accounts in a timely manner. It is also suing for breach of contract and unjust enrichment,
Padalecki is seeking certification of the class action, damages, an injunction, fees, costs, interest, and a jury trial.
Meanwhile, just last year, Nationstar Mortgage agreed to settle an action commenced by the Consumer Financial Protection Bureau for $91 million to resolve allegations surrounding mortgage servicing misconduct and deceptive practices that resulted in financial harm to borrowers. In that case, Mr. Cooper was accused of engaging in alleged misconduct and abusive mortgage servicing practices spanning from 2012 to 2015 in violation of the Consumer Financial Protection Act of 2010.
Do you have a mortgage serviced by Nationstar? Let us know your experiences with the company in the comments!
The plaintiff is represented by Norberto J. Cisneros, and Barbara M. McDonald of Maddox & Cisneros LLP , Michael Kind of kind Law and George Haines of Freedom Law Firm, LLC.
The Nationstar Mortgage Automatic Payment Class Action Lawsuit is Padalecki et al., v. Nationstar Mortgage LLC, Case 2:21-cv-00938, in the U.S. District Court District of Nevada
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13 thoughts onNationstar Illegally Took Extra Mortgage Payments Without Customer’s Consent, Class Action Claims
Having problems with Mr. Cooper for months with my mortgage.
Add me please
I have an issue with PMI payments. They don’t want to release me from the PMI until a date and not the percentage as in original documents. They are NOT a good company. All they want me to do is refi, which I would NEVER do with any company related to them. Dishonest
I had a mortgage with nation star went into foreclosure, mr Cooper took over loan. I now owe double what the loan was still after paying for 20 years
Nationstar owns Mr Cooper…. It is Nation Star DBA(doing business as) Mr. Cooper & I am in such disbelief after what I have went through ever since my loan transferred to them. It has men a nightmare for 13 months & they are of no help what do ever & I honestly don’t think they care if people lose their homes & honestly think they are out for their own profit & gains.. Tgey are suppose to have agents work directly with borrowers to help them find a solution to keep their home & not one who reads notes off computer with no authority or resource to even transfer to someone who can answer & help based on their knowledge & position. Before the end off 2022 the housing market is gana fall hard due to Nation Star & their other names they do business under like Mr. Cooper & it’s a shame that they continue to get away with it. There is a lawsuit filed for foreclosing on a Lady’s home & auctioning it at a sale while corresponding with her to resubmit a document for her loss mitigation application giving her til a date that was 2 weeks after they sold her home to resubmit the document & explanation.
add me…they took 3 unauthorized payments from my account on the same day
I receiver mortgage assistance from
My county for the amount I owed due to being In forbarence. My county has sent 2 checks and both were ‘lost’. It’s as if they don’t want to accept my assistance to put me in a difficult decision so they can foreclose.
This exactly has happened to me as well. I am looking to file a complaint as well. They withdrew 2 amounts as well another 5 all in April.
Mr. Cooper started collecting for escrow on my account when not authorized, fraudulently claimed they made payments for property taxes, fraudulently made false statements to the IRS, redirected and held my mortgage payments and have billed me for late payments that were made on time and have failed to correct and respond to RESPA requests and numerous other complaints. This is in OHIO. Good luck Mr. Padalecki.
& Mr. Cooper does this because they can & are allowed to continue. After going through a nightmare with them & denied everything but short sale & deed in leu of they also said I do not qualify for a repayment catch-up plan because I am not the actual borrower & my deceased father is only person who is on the loan & I am a confirmed successor in interest & I was offered forbearance from the previous servicer & forbearance was offered for 3 extensions after being transfered to Mr. Cooper who extended to the max allowed months of forbearance & now drscriminates against me because I am a successor of interest. I resubmitted new mortgage assistance application & it was or is now same bs reject all documents 10x before accepting same document submitted 1st time & rejecting the actual application so after being told by a balance hud councellor that Mr. Cooper doesn’t participate in the new Ca Homeowners Relief fund at this time & said if I could get back to the 2 nd job I use to have before covid I could do a catch-up payment plan which I was denied & had to figure out for myself since hud didn’t tell me or even k ow that my servicer don’t have to participate cause I applied directly through the ca homeowners relief programs website & attached all documents & logged in a week later & seen it was denied so I look in my email to find the denial email from the program who after reviewing my application & documents they contacted Mr. Cooper but I’m not sure how the contacted them but the reason for being denied was due to the servicer who is Mr. Cooper nor recognizing the applicant who is myself as the borrower or a successor of interest on the account. So they gave false & untrue information or lied how ever you want to say it that cause me to be denied which if approved they make payment directly to the mortgage servicer for all delinquent amounts including escrow advancements & all forbearance up to $80,000 but since I’m denied all but a 1 lump sum payment to bring current aside from shirt sale or deed in leu of. I have well over 50% equity, when logging in to the mortgage account they show my estimated equity & estimated home value & it shows $197,000 equity & I owe $104,000 on the loan… home estimated value they show as $302,000. Now they suddenly have accepted everything today after opening a 2 case with Freddie Mac & faxing a statement of them giving incorrect info to the assistance program I applied for directly & independently that cause me to be denied. They are incompate t in underwritting & it is against regulation to not treat me as if I am the borrower. But to offer forbearance extension 3x then deny me what is offered to named borrowers & I’ve been going through this loss mitigation bs since September & been denied & now I’ve been going in same circle cause there is no guidance or help just a default message to contact my SPOC asap cause they have questions as to the information submitted when I’ve never spoke to a single point of contact ever & customer service as well as loss mitigation & a senior loss mitigation person who all resubmitted the application & documents with a statement stating they have everything it’s there it’s complete because the senior loss mitigation person said the applications show blank in one system but are complete in the other system which must be the system customer service has access too cause they didn’t see anything wrong with the application & they don’t know why underwriting keeps rejecting them & said they can’t even contact or speak to underwritting. I spoke to another senior officer who does loss mitigation bankruptcy & I have her direct line but she don’t have a voice mail but the other senior loss mitigation person does & I also got mr coopers customer relations department which I was told is the highest up person to speak to & they are the ones who Freddie Mac contacts when a complaint is filed & a case is open and here it is for any one going through what I am. My sympathy goes out to all those who are maybe not as k owl Ed gable as I am or resourceful & persistent cause Mr. Cooper do t card, they would rather steel my home and auction it so get ahead & times that by thousands & they’re better of rather than doing a modification where the Apr gets cut in half & borbesrance get forbeared to the end of the loan term without incurring interest. If my applications are really showing blank after using tip under denial saying update needed & then says download MAA which I did & imported to acrobat & used fill & sign & saved to my files so it is a pdf file which means everyone who is submitting applications through the online process in their mortgage account & typed in the info asked on the application or imported to acrobat reader are showing blank as well and most clarification I got was once stating to re submit legible documents which they just didn’t want to say not to submit blank applications cause common sense should tell anyone that everyone isn’t submitting blank application & not only that but they ignored senior reps from other departments who submitted the documents back with explanation that they show complete in their one system but blank in the other & they didn’t read or pay attentionn or maybe they did cause it’s apparent now that it’s intentional & it seem to be ok that they continue the lone star way of practices cause the $90 million dollar class action settlement judgement in December 2021 didn’t make them skip a beat. There is more going on at mr. Cooper & more than 1 person in side & on outside that is doing far more than anyone knows & they need to be investigated. They need to answer & pay the price for their actions. They should not be allowed to service loans. Tomorrow I will be calling the consumer finance protection , RESPA & one other person who is an attorney. I don’t know what to do anymore & I’ve begged & pleaded for help but they just don’t care & underwritting has to be directed by someone who must be shielding them from trouble. I have spent many hours on phone weekly with mr. Coopers cs reps who don’t know anything or have answers. The 2 other females who are senior positions have tried to do all in their reach & power to end this merry go round they have me on but Mr. Cooper is not efficient 30 house plus I’m sure prob more on phone to get no answers when underwritting can pick up a phone & have a 10 min max conversation with me to clarify what question they have & those 40 hours spent on phone to them with agents & who ever call gets escalated to could be used to spend in training to get educated so they can spend those thousand of hours to help with all the borrowers in default who need guidance & help instead of o. The phone for over an hour in silence while they try to figure out what questions underwritting has cause they never seem to know. The housing market will definitely crash before 2024 if they are allowed to continue this shit. Here is the MR. COOOER CUSTOMER RELATIONS DEPARTMENT DIRECT PHONE NUMBER THAT ILL BE USING IN A FEW HOURS WHEN THEY OPEN. Please call if your having problems & can’t get help. Maybe it will result in something changing to help others navigate an incompetent servicer who has borrowers who are in a disaster from covid figuring out how to navigate their lack of communication with borrowers & more so between their own departments. They look incompetent AF & their system & way of navigating isn’t working & isn’t very efficient at all & they have to know this but don’t care cause being user unfriendly & in efficient gives them the results they really are looking for while staying quiet like they’re really helping borrowers. With their bullshit logo about how they see homeownership in a whole new way, Calm & ask for answered or complain to someone who is able to get answers if they want. MR COOPER CUSTOMER RELATIONS # (877) 783-7480, suppose to be their direct line. I will find out in about 7 hours. Also for those who don’t know there is a Freddie Mac borrower help line & option 2 is for borrowers & u can file complaint & they will open a case & contact Mr. Coooer customer relation for their reply. Freddie Mac’s borrowers help line phone# (800) 373-3343
I’ve been with Mr. Cooper (Nationstar) since December 2020. So far I have not had any problem. Mr. Cooper is far superior than my previous mortgage company CNA
Experienced the same problem with Nationstar in a different state. The mortgage company withdrew 2 additional unauthorized payments.
My mortgage was transferred to Mr. Cooper in November 2020 & it’s been a nightmare. My father passed away in February 2020 which my home & mortgage was solely in his name but I had an unrecorded quitclaim for protection that I had to record when submitting application for loss mitigation assistance in which I had no help & was denied a modification & only given the options for short sale , deed in leu or bring account current paying all 18 months of forbearance plus 4 months unpaid payments. I owe $104,000 on the loan balance(+$18,000 for past due payments & forbearance) & have about $180,000 in equity(home value is about $294,000) my note is owed by Freddie Mac & I should have been offered a loan modification without any income or documentation when I was 90 or more days delinquent under the Freddie Mac guidelines. I have begged for help & guidance from Mr. Cooper but they only have CS agents who read notes off computer & there is no other department to help. The CS told me they are labeled loss mitigation & CS & are also single point of contacts assigned to borrowers & I have yet to ever speak to my SPOC & when I asked why do I have a SPOC if I can never speak to them or are never available & I was told because they are just CS agents & they have to issue their names to borrowers accounts so they are in compliance with certain laws & regulations. I started looking back at dates of their documents & started looking at the monthly statements & see that there was an additional charge of $236.38 so I went back 1 year & they have been adding $236.38 additional charges every month & it took me a long time to find where it stated what the charge was for & I finally found that it is for PMI on the statement where they 1st started charging me for it which was immediately after the loan was transferred to them from another servicer. I have never had to pay PMI since the day we bought the house in 2008 & didn’t have to pay PMI when refinancing in 2016. We put initially out 25% down & when refinancing we didn’t take any cash out just refinanced for a cheaper interest rate. Mr Cooper isn’t following the guideline’s under Freddie & Mac & if the loan didn’t have PMI when refinancing 5+yrs ago when the loan was originated then how can they add PMI after a loan is transfered to them from another servicer. The delinquent amount is adding up & they didn’t think it would be noticed cause they figured I’d get a financial assistance grant through the gov home owners assistance fund that wasn’t yet available but is now. I had looked for information on Freddie Mac’s website months ago but couldn’t find anything for home owners/borrowers & I went back looking 2 weeks ago & found a phone number listed when I was reading the updated covid forbearance guidelines & called & got the Freddie Mac Borrowers Help Line & the Lady opened a case & I will have an update on Tuesday since I missed their call yesterday & the recording says close for holiday when calling back. Someone needs to do something how can Mr. Cooper have no real help for people ? I have a lot of equity so of course they denied modification & conditionally approved me for a short sale or deed in leu…. They have 1 phone number & if u ask for loss mitigation CS will say they are loss mitigation sept & if u then say I want to speak to CS they will say they are both. I have a document that titles my SPOC as a loan specialist when they are only a CS agent & have no part in reviewing loan documents or accepting/rejecting documents or any part of the approval or denial of loss mitigation options or underwriting. Their CS agent is the one who told me they have to use CS agents names cause they have to assign a name as a SPOC so they are in compliance with laws & all their calls are recorded. They had a letter hand delivered approx December 1st & then 5-8 days later I came home & found the same thing left on the door. They did that cause they should have sent me that months & months ago. I have paperless & I have save a copy of all emails & all documents they post in my loan acct online & also a snapshot of online chat with CS & an inquiry through sending a message from with the loan acct online. They are owned by Nationstar & they are huge. I think alot of people are gana lose their homes due to their practices. I have searched online after seeing that they been adding an extra $236 for PMI & can’t find anything except for the laws to cancel , stop or have removed but nothing as to if they can add it 5 yrs after loan originated if u are behind