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
Ever since Shellpoint Mtg bought out my account from Di Tech mortgage approximately 2 years ago I’ve been paying extra insurance and my home taxes to Shellpoint. I sent them proof of my up to date home hazard insurance to American Bankers Assurance as well as my Taos County taxes all paid up to date. What the heck. Shellpoint are thefts. Don.S
My loan just went from Mr. Cooper to Shellpoint. I paid my past due amount and a separate payment of $1,000 towards my December payment. When I went to pay the remainder of my December payment, I discovered that the $1,000 had been applied to the principle. Trying to get this issue resolved is impossible.
After reading these comments, I don’t think I will sign up for auto pay from their end.
We too have been charged for insurance that we have covered through our HOA. We want to join this class action suit. Please let me know how to sign on!
Same here…I am being charged for HOA insurance fees that I submitted back in July and again in August 2021.
Same- how do we get to be part of this? I’m furious.
She’ll point mortgage servicing services my loan in Illinois, they are well known for their “Lender Placed Hazard Insurance Scam” they are trying to do this to me for approximately 2 years now, I have written every agency and department, contacted attorney’s that know nothing about or will not pursue this, saying keep paying your mortgage and wait til they take you to court… This does not seem like a good strategy, they fraudulently took funds from my escrow account, that is theft. Period.
Please someone get back to us..me..whatever I have been charged for hazard insurance which I never agreed I already pay thousands every year for ins. Home inspection fees my home stalked my minor son served foreclosure papers transfer of assignment with no note and they’ve added over one hundred thousand to my principal and suing me for foreclose and no longer service my not
SHELLPOINT needs to have a LOT more class action lawsuits against it!!! I was not signed up for auto-debit but they charged me late fees for no reason and I had to battle with them for months to get them to pay back the money to me!! After they tried to foreclose on me and I had my court order against them I would have to pull out my court order and show them they were not permitted to charge me the excess fees they were (randomly) putting on my account before they would remove them!! Trust me- there are MANY people that would participate in another class action against SHELLPOINT for illegally trying to foreclose on them by denying submission of paperwork even though it was submitted!!
I have been Wrongfully foreclosed on in PENNA by SHELLPOINT servicing for us bank who also had obtained my note from the citigroup in 2010 where I have the welcome letter stating record is recorded it is not. Shellpoint filed for foreclosure in 2019 and I’ve yet to have had a hearing. They have added over 130000 onto the PRINCIAPAL and continuously every month charge 13.59 for property inspection fees NO ONE HAS EVER INSPECTED ANYTHING. AS A MATTER OF FACT SHELLPOINT SERVICED THIS NOTE THREE SERVICERS AGO. THEY STOPPED TAKING PAYMENT WERE NOT COMPLYING WITH THE UNDERLYING MODIFYING AND TRIED CHARGING ME 4763 AS AB ESCROW SHORTAGE AND CLAIMED I WAS THREE MONTHS LATE IN 4/2018 I FAXED ALL BANK STATEMENTS AND A SIGNED LETTER IN FORM OFHAL
Im trying to file for false foreclosure . Saying they have not recieved payments i have proof i paid.i had to hire an attorney . More money. Sent payments were sent back to me. They deposited payments i made on time after the due date. Theres much more. There were never any payments taken out without my permission to the best of my knowledge.
Shellpoint Mortgage Servicing (New Rez) is ONE OF THE MOST UNETHICAL companies out there!!!! They have been sued many, many times for breaches such as receiving kickbacks on forced insurance in Florida. They should be shut down!!!!
The State of Massachusetts sued Shellpoint for 4 million ($4,000,000) for not helping homeowners avoid foreclosure. They mishandled mortgage loans and foreclosures.
If you experience issues with Shellpoint, report them to your state’s Attorney General’s Office, Consumer Protection Division (for your state), the Federal Trade Commission, the Better Business Bureau and/or contact a reputable real estate attorney that handles your specific need (ie. foreclosures, litigation, etc.). Shellpoint is already on the FTC’s radar…..
If you can’t afford an attorney and speaking with Shellpoint doesn’t help (document all your calls with the dates/times/and with whom who spoke with), one should contact ALL the other agencies listed above and file a complaint to EACH agency about Shellpoint Mortgage Servicing.
Good Luck!
I have had similar issues with Shellpoint within the last few months
I to have had problems with ShellPoint, you say the state of Massachusetts sued Shell Point, send me the case number. Thank you
We had nothing but trouble with this company. First it was Green Tree they lost, then it became Ditech they lost and now it is Shell point.. Dietech took the money out and not reported any where instead they reported no payment received in my Credit report. I have the PROOF. Please let me know your contact phone number at : [email protected].
Thank Yoy,
Ditech took payments from us and Shellpoint is reporting that Ditech said we were 6 months behind. Since when can you be behind for 6 months and never be harassed nonstop by someone constantly blowing up your phone? We went from excellent credit to poor credit overnight! I had the money taken directly out of my bank account! I even sent the proof and now two years later, I still do not have this cleared up and my mom and dad are dealing with the same company and are having problem with them now as well! They paid $10,000 to them since they got a lump sum of cash in and they wanted to try to pay ahead. When they had done the same thing with ditech, ditech put it towards the payments. Shellpoint called them and told them that they were 3 months past due and they have already paid the interest on their load, but Shellpoint said that the money was put towards the principal. Well why would it be put towards the principal and not toward the individual payments if interest was not owed?
Shellpoint has been charging late fees since they took over the account from Ditech.
I have contacted them several times and have copies of each payment made on time and they are continuing to charge them.
I have even complained to the BBB.