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RoundPoint Illegal Fees Class Action Lawsuit Overview:
- Who: RoundPoint Mortgage Servicing Corporation
- What: RoundPoint Mortgage Servicing Corporation is accused of unlawfully servicing loans of West Virginia customers by assessing various fees and late charges not permitted under law
- Where: West Virginia
RoundPoint Mortgage Servicing Corporation harasses customers for payments and threatens to add illegal fees and late charges to their mortgages in violation of the law, a class action lawsuit alleges.
Plaintiff Patricia Edge filed the class action complaint against RoundPoint on July 22 in a West Virginia Court, alleging violations of West Virginia consumer laws. Last Thursday, the complaint was removed to the U.S. District Court for the Northern District of West Virginia, Clarksburg Division.
Edge alleges that, since RoundPoint was assigned the servicing rights to her mortgage in 2014, it has engaged in a practice of “unfairly, unreasonably and unlawfully” servicing the loan through assessing numerous illegal fees, including property inspection fees and late charges.
“The collection of or the threat to collect such fees are prohibited by West Virginia Law,” the complaint states.
Edge alleges that statute in the West Virginia Code prohibits a debt collector from collecting all or any of its fee from the consumer, unless expressly authorized by an agreement. She hopes to “enforce West Virginia law and stop these abusive business practices” and represent a class of plaintiffs made up of other RoundPoint customers.
The class action also alleges RoundPoint harassed Edge through calling more than thirty times per week “with intent to annoy, abuse, oppress or threaten her.”
“As a result of the Defendant’s actions, Plaintiff has been annoyed, inconvenienced, harassed, bothered, upset, angered, harangued and otherwise was caused indignation and distress,” it says.
Edge is seeking damages, costs, fees and a jury trial.
This complaint comes after RoundPoint agreed in 2018 to compensate consumers for certain charges, after it was alleged that it received illegal kickbacks for implementing lender-placed insurance policies through Great American E&S Insurance Company.
Is your mortgage serviced by RoundPoint? Let us know your experience in the comments!
The RoundPoint Unfair Fees Class Action Lawsuit is Patricia Edge et al., v. RoundPoint Mortgage Servicing Corporation, Case No. 1:21-cv-00122-TSK, in the U.S. District Court for the Northern District of West Virginia Clarksburg Division
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10 thoughts onRoundPoint Mortgage Harasses Customers, Threatens Illegal Fees, Class Action Alleges
Roundpoint took over mortgae from Mr. Cooper. never had problem with Conerstone Fiantian ( Mortgage Lender) and Mr. Cooper , Mortgage Servicing Corporatio. As soon as they took over Mortgage Servicing Roundpoint send note that our taxes are behing. No mortgage lender or Mortgage Servicing Corporatio ever take care of my taxes. I call them and advise them that my taxes are paid untl july 2023. they are asking for recept. Quick check on county tax shown no balance is due. They treaten (on the phone and in the notice) that they will set up escrow account and colect taxes. County Tax office confirmed no balance is due. They advised us that Roundpoint did not contact them in order to verify taxes status and they did not contacted Roundpoint. So round point is treaten us on thee basis on incorect ( false) information and does not alow us to speak to anyone from their “tax department”.
recently I got a call from roundup that they acquire the mortgage which was earlier through Annimac. So far i did not get any letter from anniemac. I do not understand the process and confused with what to do?
Has anyone else had an issue with them purchasing an extra insurance policy?
May I ask who is the attorney who can help us with the problems we have faced with RoundPoint and Freedom Mortgages?
Roundpoint acquired our mortgage in 2019 and did not dispurse escrow payments for our insurance for almost a year. We realized this when we tried to refinance, shortly after their merger w Freedom Mortgage. It was a horrible mess to try and straighten out. Customer service kept transferring to a different person every call. Popup emails from agents we never heard of requesting documents. It was crazy. Many others on BBB are saying the same thing about their screwy escrow nonpayments. Isn’t there a law that requires mortgage lenders to pay taxes and insurance from our escrow accounts?
I agree with you. I am so upset as I am in a vulnerable position now. As soon as I submitted my loss mitigation application to RoundPoint, instead of getting back to me with their decision, they sent me a good bye letter and switched me over to Freedom Mortgage. Since then, it has been nothing but a nightmare. I need help badly as I cannot lose my home.
Katherine we are in the same situation, do you have any news or suggestions. Round point even went to the extent that I had not made payments and reported me to all 3 credit bureau on May 8, 2022 I was over 120 days late on payments while on 3 payment modification trial period and prior to the last payment due in May of 2022 they sent me a a good-bye letter in April which I received in may and switched me to Freedom. I was able to make the payment with Freedom and they have assured me things are still good but I’m very concerned about reading all this and also how bad things were with round point.
something strange is going on with them. I was on forbarance from covid and they were very nice. Never really explained much to me about the process but assured me things were fine. Then I get a great paying job an asked to be taken off the forbarance. They sent me an informal flex modification trial period. I made all the payments but for some odd reason the last check didnt get to them or they say…. it was late and they sent me a DEFAULT notice. to pay the entire forbarance back now or its going into foreclosure. I was at work and had to leave my office from the shock and panic of what the hell was going on. everytime I called them they had no idea what I was talking about. One guy told me thing were fine and that same day I get another DEFAULT for forclosure letter certified mail. I am horrified. I dont know who to talk to over there. My house is in jeopardy. I am a single mom with a specail needs child. I have money just not the 20k forbarance from covid stay at home and home school. All our protections have been taken away and Roundpoint is playing hard ball and maniupulation games to get my house.
Marieds hill Round point margage would not grant forbearance but did approve modification. But want me to pay them with out a signed in agreement.
It seems Roundpoint is deliberating setting me up for failure through not processing mortgage payment via. ACH and then stating they didn’t have information to contact me ! Bank already stated information was in place ! I’m concerned about corporate criminal !