Mortgage company Shellpoint Mortgage Servicing repeatedly debited fees from customers’ bank accounts without pre-authorization, a new class action lawsuit alleges.
Plaintiff Dale Ross filed the class action lawsuit against mortgage loan financing company Newrez LLC — doing business as Shellpoint Mortgage Servicing — in a Pennsylvania federal court Monday, alleging violations of the Electronic Funds Transfer Act.
Ross says, prior to September 2019, she entered into an agreement with Shellpoint, where it would deduct funds from her account on a recurring basis to pay for her mortgage.
“Despite Plaintiff being automatically charged by defendant, and despite making timely payments, Plaintiff was charged a thirty-five dollar late fee multiple times on a recurring basis, without Plaintiff’s consent or authorization,” the class action lawsuit states.
Ross says the automatic fee withdrawals caused an overdraft on her bank account, leading to additional fees. She says she never provided Shellpoint with any authorization to deduct the additional sums of money on a regular recurring basis from her account.
“Nor did Plaintiff owe said fees, as she was making timely payments on her loan,” the class action alleges. “Defendants continue to deduct this monthly sum from Plaintiff for several months without Plaintiff’s authorization.”
Ross is seeking to represent any United States resident whose bank accounts were debited on a recurring basis by Shellpoint without their obtaining preauthorization to take the electronic fund transfers.
She is asking for certification of the class action, damages of $1,000 per Class member, other damages, fees, costs and a jury trial. The class action is suing under the Electronic Funds Transfer Act, as well as for conversion.
The class action comes days after Mr. Cooper, one of the country’s largest mortgage servicers, was accused of taking extra mortgage payments from customers’ accounts without their permission, in a new class action lawsuit.
Have you had extra fees taken by Shellpoint? Let us know in the comments!
The plaintiff is represented by Todd M. Friedman of the Law Office of Todd M. Friedman.
The Shellpoint Fees Class Action Lawsuit is Dale Ross V. Newrez LLC, Case No. 2:21-cv-02247, in the U.S. District Court Eastern District of Pennsylvania.
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23 thoughts onMortgage Company Debited Bank Accounts Without Permission, Class Action Alleges
YES!!! and they’re refusing to refund me. I’ve been calling, filed a complaint. NOTHING. They claimed I didn’t have home owners insurance, which I did and always have. So they deduced money but adding an addition fee to my mortgage, to ‘make sure I had a policy’. I did not authorize this, nor did they ever reach out to me. I have never had a lapse in my home owners insurance policy and didn’t authorize for this additional fee. This happened in Sept of 2021 and I’m still battling them about it to get my refund.
Nothing but issues since the took over my Ditech mortgage every 6 months they start charging me for insurance and I have insurance and have stacks of proof showing I have provided the proof of insurance and then I have to fight for the money back. This is insurance fraud at its finest.
Yes they’ve taken 700-800 from me so far that I have found. And here’s the kicker, I’m not even a customer I had never heard of them before.
I have been waiting since Feb.7th.2020 to get my house fixed from ice storm. Insurance is paying rhey take so long 2 process. I still have damage from storm 2. Years still trying 2 get my house fixed they never do things right way.. please appthings right
I am in loss mitigation and never made a late payment ever. My payment is automatically taken by them every month yet they reported me to the credit bureau making partial payments, taking my credit score down 145 points. I never made a late payment. I have 3 laws they have broken and I have documentation yet no one will listen. I have reported them to consumer credit, BBB and if I do not hear from someone today to correct my account I am contancting
Monica, Consumer Resource Center, Fannie Mae January 22,2022
Better Business Bureau, Complaint Department
Newrez LLC, Customer Care Team
Shellpoint, Loss mitigation Department
Ohio Attorney General, Dave Yost
Special Inspector General for Pandemic Recovery
Federal Trade Commission
I would love to speak with whoever is taking your lawsuit because they need to be held accountable. I do not plan to stop until they do what they are required to do by law. If someone would have the attorney contact me I have a folder with dates, times, and names for everyone and can supply documentation: bank statements, their own answer to my complaint, and numerous other things in writing from them showing illegal activities. I wish you all luck with your venture they are not able to continue this way of doing customer service!
I called in to make one payment.They debited my account for five payments. Over drafted my account. Reversed the charges. Then paid me back too much.Now they have back dated my account to Sept. . It is showing I haven’t made my
payments.
They are charging me interest and fees for their mistake.
They said I applied for a loss mitigation…I did not..It is ilegal
Im having many isues with them as well. BOA gave to Shellpoint to service while I was delinquent. My Ch7 BK was discharged in 2011 and I didnt reaffirm so I dont owe this debt. They keep putting on my credit making it go down 150 pts and I had paid up to date so the info wasnt even correct. They removed from 1 report then put on another or just didnt remove from all. Also Im in Short sale and the Rep assigned has no purpose. She isnt giving correct info & losing docs. They wont show investor offers that come in unless theyre only $3k less than what I owe. What is the purpose of a Short sale then