Lauren Silva  |  November 11, 2021

Category: Legal News

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mr. cooper nationstar mortgage class action
(Photo Credit: IgorGolovniov/Shutterstock)

Mr. Cooper, Nationstar Mortgage Class Action Lawsuit Overview:

  • Why: The plaintiff takes issue with Nationstar’s alleged history of making unauthorized withdrawals from customers’ bank accounts.
  • Who: A Nationstar customer is suing the mortgage servicer, also known as Mr. Cooper.
  • Where: The class action lawsuit is pending in Texas federal court.

Mr. Cooper, also known as Nationstar Mortgage, is facing a class action lawsuit lodged by a North Carolina resident for allegedly making several unauthorized withdrawals from her bank account and failing to adequately investigate or fix the issue. 

The lead plaintiff is Martha Keen Stovall, whose mortgage payments are serviced by Mr. Cooper. On three separate occasions in 2017, 2020, and 2021, Nationstar Mortgage made unauthorized and improper payments from Stovall’s bank account. 

Stovall seeks to represent three nationwide classes and three North Carolina subclasses. These include individuals ​​whose residential mortgage loan servicing rights were held by Nationstar and covers Nationstar’s unauthorized electronic fund transfers in April 2021, duplicate electronic funds transfers, and improper payment processing.

The complaint alleges that Mr. Cooper improperly withdrew money from nearly half a million people in the United States. Mr. Cooper’s negligence led to significant overdraft fees for customers, left borrowers with reduced (or zero) purchasing power, and emotional distress, anxiety, and worry.

The class action lawsuit accuses Mr. Cooper, also known as Nationstar, of negligence and violating several lending and banking laws by “repeatedly” and “unlawfully” collecting “tens of thousands of unauthorized mortgage loan payments.” The complaint also briefly accuses Nationstar of unfairly making money off of these unauthorized withdrawals by accruing interest on them.

Mr. Cooper, Nationstar Has History of Unauthorized Payments, Claims Class Action 

Stovall first experienced a payments issue with Mr. Cooper in March 2017 when the company took an unauthorized payment from Stovall’s account in addition to her usual monthly payment. This payment was later returned to Stovall. 

In November 2020, Mr. Cooper made two withdrawals from Stovall’s account — one for her November payment and one credited towards her December payment, which was not due for another month. Stovall contacted Nationstar to correct the error and to ensure it didn’t happen again, both of which Nationstar “failed to do,” according to the complaint. 

In April 2021, Nationstar took three unauthorized payments from Stovall’s bank account after already taking her monthly mortgage payment for April. The company later reversed these payments and sent a letter to Stovall stating that the company had “launched a full investigation to get to the bottom” of the payments issue. 

In total, around $2,066 was taken from Stovall’s account without her authorization. She seeks actual, statutory, and punitive damages, injunctive relief, and litigation expenses.

Do you have a mortgage serviced by Nationstar or Mr. Cooper? Have you experienced similar payment errors from your mortgage servicer? Tell us about it in the comments section below!

The plaintiff is represented by John D. Blythin and Jesse Fruchter of Ademi LLP.

The Nationstar Unauthorized Withdrawals Class Action Lawsuit is Stovall v. Nationstar Mortgage LLC d/b/a Mr. Cooper, Case No. 3:21-cv-02735-X, in the U.S. District Court for the Northern District of Texas Dallas Division.


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183 thoughts onMr. Cooper, Nationstar Faces Class Action Over Thousands of Unauthorized Mortgage Payments

  1. Natasha Wilson says:

    They been shreding money order we sent over 3 months since it did not cover what we owe them. $8500 worth of money order that will now cost me $50 each to put a stop pay and 30 day to get the replacement check. In the meantime we get a notice from MR Cooper that they started foreclosure procedure on our home on 3.7.2024.

  2. Jackie Haynes says:

    Please contact me. I have Mr. Cooper .

  3. Mona Cosgrove says:

    I used a phone number I received from my mortgage (Mr. Cooper) to make a payment on line. I was late on my payment due because
    Mr Cooper overdrew a payment from my bank account causing it to be emptied due to what I was told was due to a Gish in their system. I was then advised to send the payment over night to who I was told was an Atty Roy Hunter who office is located at 6505 Market St Suite 103 , Upper Darby PA 19082 my tracking number is EI630662857US. I sent the money order and on 7/14 I contacted the Mr. Cooper and was told that payment was not received and that the Individual I was dealing with was not their agent. I have filed an Report with my Sheriff Case #50230013209 ) Officer (7037771021) Loudoun County Virginia. The overnight package I sent has been received an no further info. Today I did some research and found the address I was given is a UPS office in which Roy Hunter where he receives mail. I can not think of any think else. Please help me I need my Social Security money returned due to the fact I an on a fixed income. I contacted all the government agencies and companies who said they held victims of fraud and recieved no help. Some even told me I was wrong about Mr. Cooper when I gave them the companies Fraud information. If you can help me I would truly appreciate it. Also The Sheriff office did nothing and returned the information I had given them to do a search and it was the information I had given them from the research I had done.

  4. Cheri Conti says:

    I have been destroyed by nationstar Mr cooper way ro much to text they should of been shut down years ago I owed 10.000 pay 2016 insteD I owe over 70.000 escrow always missing payments stolen foreclosure over 5.00 and another for 1.00 dollar fees are fraud

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