Nationstar Illegally Took Extra Mortgage Payments Without Customer’s Consent, Class Action Claims

One of the country’s largest mortgage servicers has allegedly been taking extra mortgage payments from customers’ accounts without their permission, a new class action lawsuit claims.

Plaintiff Brett Padalecki filed the class action lawsuit against Nationstar Mortgage, doing business as Mr. Cooper, in a Nevada federal court Friday.

Padalecki says Nationstar — which processes borrower payments, administers loss mitigation processes, and manages foreclosures — violated multiple federal and states laws in its processing of customer mortgage payments. 

In his case, Padalecki says Mr. Cooper withdrew, without authorization, two additional mortgage payments from his bank account in April this year. 

He says he had already made his monthly mortgage payment, and was not signed up for Mr. Cooper’s AutoPay. 
Padalecki says he disputed the withdrawals with his bank. 

“As a result of these unauthorized transfers, Plaintiff suffered damages including but not limited to the loss of the availability of the money, emotional distress from his checking account being drafted without permission and having to demand Defendant correct its errors.”

Padalecki is looking to represent anyone in Nevada whose mortgage loan servicing rights were transferred to Nationstar and who had executed an electronic funds transfer authorization with their prior servicer, and then had “inconsistent” payments taken by Nationstar that they had never agreed upon.

The class action lawsuit alleges Nationstar violated the Electronic Fund Transfer Act (EFTA) because it initiated electronic transfers on 
Padalecki’s bank account that were not consistent with the electronic funds authorization he had with the company.

It also says Nationstar violated the Nevada Deceptive Trade Act through falsely representing that it had permission to withdraw money from 
Padalecki’s account. 

The class action alleges Nationstar was negligent through its failure to address customers’ claims of fraudulent and unauthorized transactions on their accounts in a timely manner. It is also suing for breach of contract and unjust enrichment, 


Padalecki is seeking certification of the class action, damages, an injunction, fees, costs, interest, and a jury trial.

Meanwhile, just last year, Nationstar Mortgage agreed to settle an action commenced by the Consumer Financial Protection Bureau for $91 million to resolve allegations surrounding mortgage servicing misconduct and deceptive practices that resulted in financial harm to borrowers. In that case, Mr. Cooper was accused of engaging in alleged misconduct and abusive mortgage servicing practices spanning from 2012 to 2015 in violation of the Consumer Financial Protection Act of 2010.

Do you have a mortgage serviced by Nationstar? Let us know your experiences with the company in the comments! 

The plaintiff is represented by Norberto J. Cisneros, and Barbara M. McDonald of Maddox & Cisneros LLP
, Michael Kind of 
kind Law
 and George Haines of Freedom Law Firm, LLC.

The Nationstar Mortgage Automatic Payment Class Action Lawsuit is Padalecki et al., v. Nationstar Mortgage LLC, Case 2:21-cv-00938, in the U.S. District Court District of Nevada

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