Convenience Fee Class Action Lawsuit Filed Against Arvest

If you’ve ever made a mortgage payment or a college tuition payment or paid property taxes, you’ve probably been charged a convenience fee by the debt collector. These fees are meant to cover the cost of the transaction, but recent lawsuits have exposed the fact that some institutions may be charging far more than these transactions cost them to process.

Most recently, a class action lawsuit was filed against Arvest Central Mortgage Co. regarding allegations that they improperly charge customers a convenience fee for payments made online or on the phone.

What Is a Convenience Fee?

A convenience fee is a charge placed by a seller or financial institution when a consumer makes a payment using and electronic payment card rather than a traditional method like cash, check, or automated clearing house transfer. These fees may be a set amount, or they may be calculated as a percentage of the payment amount. Convenience fees are often charged on mortgage payments, property tax payments, taxes, and college tuition payments, according to Investopedia.

A convenience fee is usually charged to help a business or institution cover the cost of processing the payment. However, recent class action lawsuits against financial institutions have found that some charge far more than the payment processing actually costs.

The Florida Consumer Collection Practices Act

The Florida Consumer Collection Practices Act (FCCPA) was created to regulate the actions taken by debt collectors and creditors when they interact with consumers. The law prohibits misleading, abusive, or fraudulent practices on the part of debt collectors. Prohibited practices include each of the following.

• Communicate directly with a debtor being represented by an attorney
• Pretend to be a police officer or attorney
• Present themselves as working on behalf of a government agency
• Collectors may not use threats or actual use of violence
• Communicate or threaten to communicate with debtors’ employers
• Contact a third party regarding a consumer’s debt
• Harass debtors or their families
• Represent their communications as attorney letters or government documents
• Use obscene or abusive language when communicating with debtors
• Threaten or attempt to enforce an illegitimate debt
• Mail documents with embarrassing phrases visible on the envelope or postcard

Each of these prohibitions comes with its own details and some have possible exceptions. As such, if you are planning on bringing a class action lawsuit against your debt collector, you may wish to seek the assistance of a lawyer.

Class Action Lawsuit Allegations

Plaintiff Andrew M. brought a class action lawsuit against Arvest regarding allegations that the loan servicer improperly charged a convenience fee for transactions made online or over the phone.

According to Andrew, Arvest charges a $10 convenience fee for phone payments made with a customer representative and a $5 fee for payments made online or over the phone using the institution’s Interactive Voice Response system. However, these transactions allegedly only cost Arvest $0.50 or less per transaction. Miller contends that this constitutes a violation of the FCCPA as it represents a collector trying to enforce an illegitimate debt.

This Convenience Fee Class Action Lawsuit is Case No. 1:20-cv-22820-FAM filed in the Circuit Court of the 11th Judicial Circuit in and for Miami-Dade County, Florida.

Should You Join A Convenience Fee Class Action Lawsuit?

If you feel your debt collector has violated the FCCPA, you can file a complaint with the state’s Office of Financial Regulation. You may also wish to take legal action against your debt collector.

Lawsuits regarding debt collector’s convenience fee practices generally allege that these fees exceed the actual cost of the services being provided. As such, filing a class action lawsuit against your debt collector may help you seek compensation for that excess cost as well as attorney’s fees and court costs.

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.

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This article is not legal advice. It is presented
for informational purposes only.