Kim Gale  |  October 11, 2019

Category: Legal News

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A woman looks shocked as she reads papers.A California woman has filed a mortgage payment fee class action lawsuit alleging M&T Bank violated the terms of her mortgage.

Plaintiff Lisa Silveira alleges M&T Bank violated the Fair Debt Collection Practices Act (FDCPA) and the California Rosenthal Fair Debt Collection Practices Act by charging her a $15 fee to make her monthly mortgage payment over the phone. She says the fee is not authorized by the mortgage agreement she signed.

She claims that by charging a “pay-to-pay fee,” M&T Bank allegedly is in violation of its own mortgage agreement’s Uniform Covenants section that says the lender may not charge fees prohibited by “Applicable Law.”

Mortgage agreements almost always prohibit pay-to-pay fees, which also might be called speedpay fees, processing fees or convenience fees.

These types of processing fees are not always illegal. They are often seen as separate charges when consumers purchase event tickets or movie tickets online or over the phone.

However, such processing fees tacked onto a mortgage payment are illegal if in violation of the mortgage agreement.

Allegations in Mortgage Payment Fee Class Action Lawsuit

Silveira says she bought her home in San Luis Obispo County, Calif. in December 2008 through a loan from Stearns Lending, Inc., secured by a mortgage on the property. She says M&T acquired the loan in default in 2016.

According to the mortgage payment fee class action lawsuit, because M&T Bank acquired the loan in default, and because M&T meets the definition of “debt collector” under FDCPA, M&T is a debt collector, whose principal purpose is to collect debt.

She argues M&T is a debt collector because it is a “business the principal purpose of which is the collection of any debts, or who regularly collects or attempts to collect, directly or indirectly, debts owed or due or asserted to be owed or due another.”

Silveira says she obtained a loan modification in 2017, and since that time, she says she has made timely mortgage payments. She has made payments over the phone on at least five occasions. She alleges she was charged an illegal fee of $15 each time she made her mortgage payment over the phone.

The $15 fees charged for paying her mortgage over the phone did not have anything to do with the mortgage itself. When you buy a home, you do have to be aware of loan origination fees, title fees, appraisal fees and other one-time fees that pertain to the purchase of the home.

Recurring fees for each payment may not be part of the deal, however. An extra $15 charge simply to be allowed to pay your mortgage over the phone is illegal in most cases due to the FDCPA.  In California, homeowners also are protected by the Rosenthal Act, which makes it illegal to collect “the debt collector’s fee or charge for services rendered.”

The Mortgage Payment Fee Class Action Lawsuit is Lisa Silveira v. M&T Bank, Case No. 2:19-cv-06958, in the U.S. District Court for the Central District of California.

Join a Free Mortgage Payment Fee Class Action Lawsuit Investigation

If you were charged a payment fee for paying your mortgage online or over the phone, you may qualify to join a FREE online payment mortgage fee class action lawsuit investigation.

Learn More

This article is not legal advice. It is presented
for informational purposes only.

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6 thoughts onWoman Files Mortgage Payment Fee Class Action Lawsuit Against M&T Bank

  1. DMFoster says:

    You are so right Carlos. This is worse than the sixties. Racism is called for any issue. I hope we see people move forward, not backward. We need to stand together. It seems to me it is Good Vs. Evil at this stage of the game.

    If your home has been taken or is being threatened by a Non Judicial Foreclosure – Contact National Liberty Alliance – They have cases against the non Constitutional aspect that a Judge cannot make the decision -According to the Constitution – You Must Have a Jury of your peers. It is Common Law and your Constitutional Right – From God – We need more education to learn these things and they do have it too – minimal monthly membership – the more cases against the judges themselves for ignoring the Oath of Office. There is also a man named Rick Martin that is helping with No Due Process of Law Cases right now. Best of Luck and Many Prayers for all of us.

  2. Christina says:

    I live in warren michigan and been trying to find a law group that would take on my lawsuit i need to file against M&T bank. Diff attorneys said they breached contract with my loan. When i filed a complaint with the state attorneys office and HUD they immediately put my home in a foreclosure and stopped accepting my payments. To give me more time to try to find legal help i filed a bankrupty. Unfortunately i couldn’t find an attorney without spending thousands and was forced to sell the house to avoid the sheriff sale date. If anyone has any info that could help my case please email me at ccamargo3217@gmail.com

    1. Kalena says:

      They did the same to me and I eventually loss my home, ruined my credit and much more… please contact me with details

  3. Debbie G says:

    M & T is definately crooked and unethical. No question about it.

  4. Brandi says:

    Good for her, I hope she wins. I hate m&t bank, racist and predatory. Stop doing business with them and they will go away.

    1. Carlos says:

      All because they declined you doesnt make them a racist.
      Im so sick and tired of all the cry bables who dont get there way calling someone racist.

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