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According to a recent class action lawsuit filed by several plaintiffs against Carrington Mortgage Services, the company may have illegally charged processing fees to customers who paid their monthly mortgage online or over the phone.
Carrington Lawsuit Filed Over Mortgage Payment Processing Fees
Carrington Mortgage Services is one of the largest servicers of residential mortgages in the United States. However, according to plaintiffs in a recent lawsuit, the mortgage company may be violating the Fair Debt Collection Practices Act (FDCPA), as well as state debt collection laws, and the terms of their own mortgages.
According to consumers, Carrington may be charging borrowers $5.00 each time they pay their mortgage online, and between $10.00 and $20.00 for each payment made over the phone. These mortgage payment processing fees may also be referred to as “Pay-to-Pay” fees.
Plaintiffs Amy T., Brenda B., Miguel P., and William G. filed their lawsuit against Carrington Mortgage Services on Dec. 16, 2019. Plaintiff Amy T. claims that she made several online mortgage payments in September and October 2017, as well as February 2019. Each time that she paid her mortgage online, Amy claims she was assessed a $5.00 fee. William G. claims that in addition to the $5.00 fees he was assessed for payments he made online, he was also charged $10.00 and $20.00 fees for payments he made over the phone. Brenda B. and Miguel P. have similar claims regarding illegal pay-to-pay fees.
Unlike hidden fees, these fees are known, but not legal. Although Carrington is permitted by law to pass on fees paid to third party servicers to borrowers, mortgage companies are not permitted to mark-up these fees in order to pocket a profit. Although the system that Carrington uses to process online fees charges about $0.50 for each transaction, Carrington charges consumers $5.00 in order to pay their mortgage online. The $4.50 difference is allegedly pocketed by the company as profit.
Several other financial institutions have been found to have charged consumers illegal mortgage payment processing fees, including Citibank and Green Tree Servicing. Payment processors at these companies may be pressuring customers into agreeing to pay these deceptive fees by calling them “processing charges,” or saying that the fee was necessary in order for the payment to be processed immediately.
About the Fair Debt Collection Practices Act
The Fair Debt Collection Practices Act governs the ways that debt collectors are allowed to attempt to collect a debt on behalf of another entity. Under the FDCPA terms, debt collectors are prohibited from using false, deceptive, or misleading means in order to collect a debt. This may include misrepresenting the character, amount, or legal status of the debt.
If Carrington is misrepresenting the fees associated with online and over the phone payments, the mortgage company may have violated the FDCPA. Companies who violate the FDCPA may be sued within one year of the violation and may be subject to fines or legal action.
Consumers who believe they have been harmed by FDCPA violations committed by Carrington or another mortgage lender may be able to file a class action lawsuit against the offending company.
The Carrington Illegal Mortgage Fees lawsuit is Case No: 1:19-cv-03567-DLB, filed in the United States District Court for the District of Maryland, Northern Division.
Join a Free Mortgage Payment Fee Class Action Lawsuit Investigation
If you were charged a payment fee for paying your mortgage online or over the phone, you may qualify to join a FREE online payment mortgage fee class action lawsuit investigation.
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33 thoughts onLawsuit Alleges Mortgage Payment Processing Fees are Illegal
I wish i had someone to tell me how i paid close to 5000.00 in Fee’s , my payments was 480.86 a month .this started in 2018 to 2019 with Chase in 2019 i paid over the limit on my morgage .5770.32 for year . my escrow was 2.400 pretty close just little off my insuranse and taxes come to around 1.300.00 . this all started with one payment in June of 2018 .I never got caught up .I pay 550.00 to 600.00 to 1000.00 to CHASE . At the end of 2019 they took grant out for 20.000 they keep you pay back but it added to loan so i went from 68.000 to 86.000 then they dropped it . I have tried can never get answer from CHASE ,addeding payments to Fee’s . In 2019 i thought i was caught up after paying all that money and more in March i looked i was three months behind i paid 1000.00 it went for Fee’s . My loan was sold and i glad it was .I am Carrington Morgage my payment comes out of automatic payment draft by bank account , I don’t no what this Fee is , i have been paying ever month .10/04/2021 $348.59 Principal 80.26 Interest 142.87 Escrow 125.46 $0.00 $0.00 $0.00 Funds Received
10/04/2021 $10.00 $0.00 $0.00 $10.00 $0.00 $0.00 $0.00 Funds Received. what is 10.00 i have to pay . so far i have payed 120.00 . so what is this 10.00
I was with chase and was switched to Carrington.. i have been charged $20 several times to pay my bill over the phone because I couldn’t get logged in to their website. There was always an issue. I think they do this purposely because they want to foreclose on homes. The amount that I pay and the percentage that goes toward my mortgage is crazy. Please ad me. Ty
I came from chase as well and i am really getting irritated with the processing fees carrington is charging weather its phone online or whatever. I think this needa to stop!
Bank of America sold my mortgage to carrington morgage they charge me 5 dollars every month for paying online been paying that for years now I can’t pay online and I’m not paying 10 dollars to pay by phone
They told us they would do a loan modification with us and we kept faxing everything they ask for and we have confimation it for sent. Then they would contact us pr we would call them and they would tell us they are still missing things . This started in end of May. and now we get a letter dated August 20,2020 they have cancel our request for loan modification. Our rep is Teresa Cumming who is hardly ever available. I have email and email her and she keep saying well we are missing this document or that document and we have resend things a many as five times. We live just outside Houston Texas and sadly we can’t afford an atty.
Please add me to the lawsuit. Thank You
How is my payments 1040,00 a month but only 140.00 goes to to loan
I paid processing fees I never thought anything of it until now also Carrington purchased my loan from Bank of America after a modification I owed 2 payments past due and loan term went from 5year pay off to another 25 years payoff.
I’ve had fees for Inspection charged multiple times per month, as well as repeated months in a row. I had a zero balance from January to May than all of a sudden there’s a fee for almost $400 that shows up in June dated for April. I found this site today while trying to find out what to do because I was calculating why my bill I paid today was $500 more than it should be. Turns out they had also ignored an entire payment as well as all the pay to pay charges, inspection fees, and other crap. This is the worst company I have ever seen. I have seen so many times over the years where they have ripped me off, it’s ridiculous. I wasn’t able to previously but I am tired of the thousands of dollars they keep ripping me off.
Please add me to this lawsuit. I had my payments set up on automatic draft and I notice that my draft was higher than my payment. When I called Carrington they told me my insurance when up and I asked them why they didn’t notify me that my payment went up. I was told they don’t notify customers if their payment goes up. I told them because they took out over the amount I was charged a fee at the bank. They told me to go to the bank, when it was them who took out more than authorized. Now I am paying $5.00 per month to make my payments. I don’t trust them as a company.
Please add me to class action as well. These pay to pay fees are illegal.
Everything about this company is criminal. In addition to the pay to pay fees, they have owed me a $219.35 MIP refund for several months. Their offer for forbearance during the COVID-19 pandemic is also a disgrace (90 day delayed payments with 4 months due at the end of the forbearance period???).
How do I participate in the lawsuit?