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Unfortunately, nefarious collection practices are common in the mortgage industry. In a recent lawsuit, borrowers allege that Carrington Mortgage Services, one of the largest residential mortgage servicers in the country, has been charging a mortgage online payment fee for online transactions despite such a fee not being included in the mortgage agreement.
Especially in times of crisis, it’s hard to deny that lending and borrowing are necessary evils of the United States economy. However, that doesn’t mean that these practices shouldn’t be regulated. In Florida, the collections practices taken by lenders are regulated by laws including the Florida Consumer Collection Practices Act (FCCPA). Under this law, lenders are limited in the additional charges they can place on mortgages, including in the form of a mortgage online payment fee.
When agencies break these laws, consumers can fight back. In the case of Carrington Mortgage, a class action lawsuit was filed: Victoria Dawkins v. Carrington Mortgage Services LLC, Case No. 0:20-cv-60998-RAR. Dawkins is filing on behalf of herself and all others similarly situated. The suit was filed on May 20, 2020, in the United States District Court for the Southern District of Florida.
Carrington Pay-to-Pay Fees
According to the lawsuit, Carrington illegally charges a $5.00 fee for each online payment, as well as $10.00 to $20.00 for each payment made over the phone. The suit claims that Carrington is meant to be compensated for their services through interest charged on the borrower’s debt. Despite this, borrowers were charged for online payments made via Quick Pay, a payment processing system by Western Union.
According to the suit, Carrington pays Western Union $0.50 or less for each of these transactions and keeps the difference, $4.50, for itself.
While Carrington is allowed under the law to charge borrowers the actual cost of services, the suit alleges that the average mortgage online payment fee charged for these services far exceeds that actual cost. Moreover, fees not posted in an agreement may constitute hidden fees, and be in violation of consumer protection laws.
Mortgage Online Payment Fee Laws
The behavior of borrowers such as Carrington is regulated by the (FCCPA). Under the FCCPA, lenders can’t use specific practices including threats of force, harassment of the debtor or their family, and implications of any kind that they are representing an attorney. Most importantly, the FCCPA restricts lenders from attempting to “claim, attempt, or threaten to enforce a debt when such person knows that the debt is not legitimate”.
The second law cited by the lawsuit is the Florida Deceptive and Unfair Trade Practices Act (FDUTPA). Under this law, lenders are restricted from using “unfair methods of competition, unconscionable acts or practices, or unfair or deceptive acts or practices in the conduct of any trade or commerce”. According to the suit, “unfair” acts include those which are “substantially injurious” and “not outweighed by any countervailing benefits”. The suit’s argument is that the Carrington mortgage online payment fee constitutes such an unfair act.
Finally, the suit argues that, because Carrington is a Department of Housing and Urban Development (HUD) approved lender, it is subject to all HUD regulations. This includes a restriction on the types and amounts of fees a lender can charge. Specifically, fees charged by lenders must meet three requirements including being “based on the actual cost of the work performed or actual out-of-pocket expenses”.
Should You Join a Mortgage Online Payment Fee Class Action Suit?
According to the Florida Office of Financial Regulation (FLOFR), for those who feel their lender has violated the FCCPA there are a few actions they can take to seek justice and compensation. First, borrowers can file a complaint with FLOFR. However, FLOFR makes clear that filing a complaint is not a way to seek compensation.
To seek recompense, borrowers need to take legal action. Filing civil actions of this type may be contingent on a tight timeline, so it is recommended that you seek legal counsel and file as soon as possible, according to the FLOFR.
Pursuing litigation can be initimidating, so Top Class Actions can help to connect you with an experienced consumer protection lawyer who can verify whether or not your mortgage servicer was in violation of your existing agreement at the time that you were charged additional fees.
Join a Free Mortgage Payment Fee Class Action Lawsuit Investigation
If you were charged a convenience fee for paying your mortgage online or over the phone, you may qualify to join this mortgage payment fee class action lawsuit investigation.
This article is not legal advice. It is presented
for informational purposes only.
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46 thoughts onCarrington Class Action Filed Over Mortgage Online Payment Fee
Yes I have been paying a fee for years to Carrington mortgage. I thought it was illegal and told them of such. They stated it was a process fee. I do not want them taking my loan automatically and pay direct monthly.
We are in the same situation
I have Carrington Morgage service and I been paying on line charges every month for years
I’m with Carrinton Morgage service and I been paying fees every month for years also
I have a home loan with Carrington and I’ve paid fees for years of $5.00 for each payment and over the phone fee $20.00.
I am with Carrington Mortgage and I am charged a fee every month to pay. Online or by phone.
I am with Carrington Mortgage and I am charged a fee every month to pay. Online or by phone.
My loan was sold off to Carrington Mortgage Services, LLC. recently and it has been a nightmare. I have had my loan with my previous provider and was never late in the 8 years I had it. Loan gets sold to Carrington and I am seeing fees left and right. I sent my mortgage payment out October 20,2020 for November payment that is due November 16th. On the 15th of November I called them to see if they received it and they said no it’s probably lost in the mail. So I ended up paying the full amount over the phone and got charged the additional convenience fees they add on. Next day the mortgage payment check I sent out cleared on there end. Now I am out the additional money for food, gas and other expenses for that month. They then charged me a $35 late fee for something that wasn’t my fault plus additional charges to pay over the phone. They would not do a courtesy refund. They said it’s your fault it’s late. This company is horrible. I would not recommend them to anyone. I feel what they are doing is illegal. I was wondering if they had my check and was just holding it to become late to accrue the profit. Following month I did an experiment and sent the check out on November 15, 2020 for a December 16,2020 due date. It’s now December 7, 2020 and they still have not received it. All my other checks that I wrote out on the same day have already been processed and cleared weeks ago. I called them on the 2nd of December discussing my concern. They had no interest in listening to me and said I should just pay the fee to do it over the phone. Now I am in a rock in a hard place. If I keep waiting and it goes over the December 16th due date they will charge me another $35 late fee. I’m afraid if I pay it over the phone they will cash the check within the next few days. I’m in a situation where I could double pay them yet again. This situation is not fair and this company needs to be thoroughly re-evaluated by legal authorities on unfair practices they are performing to there not valued customers. Any assistance on this matter would be greatly appreciated.
Nationwide sold my mortgage to Carrington mortgage I’ve never been late in 20 year in making my payment one day I mailed my payment in Feb for march soon I still had cash in my account and nothing was being taken out so I called I asked why haven’t you cashed my check they said they haven’t gotten any mail do to the flood over a month then she tells me that they will charge me a late fee because they didn’t get the mail I said like hell you will because I didn’t know where my check was out there I had to cancel it and I make a direct deposit to them so my house was paid I did this for 2 months then when I tell them when my check was coming I would post it so they knew when to take out But again in June nothing was taken out I again called and asked why they haven’t taking it out and her responds was it has to be 45 day for for they can do that I said no it don’t because they where taking it out every time I changed it so I got a letter in the mail telling me I had to pay 1400.00 for Junes and July’s payment they where charging me a late fee because someone there didn’t do their job I said I wasn’t going to pay it for someone messing up I then wrote a check out and they posted on July 2 2021 and the they went in and took out another payment of 700.00 on July 12th 2021 when I told them not to go into my account again the woman said they stuck a note in my file that I was to pay by check but they did it anyway then they sent me a note telling they returned my extra payment because I had no money I wonder why I just wrote out a check for 1325.00 for June and July’s payment then the next statement they send again they charged me a dam later fee now on my record saying I missed a payment never have in my dam life every since this company got my mortgage it’s been bad news every since I’ve been highly stressed out my family want to put me on medication I just don’t need to be with this bad company they are NO good
My mortgage has been sold many times over 20 years. Even carington selling to carington! They played many games and never help. My wife’s disability makes thing very very hard.
HI MY NAME IS LARRY SWEENEY AND YES I HAVE CARRINGTON MORTGAGE SERVICES AND THEY HAVE BEEN CHARGING ME A 5.00 DOLLAR CONVENIENCE FEE FOR THE LAST 8.5 YEARS AND I THINK IT IS ABOUT TIME THAT SOMETHING IS DONE ABOUT IT THANK YOU…