NewRez SLS Pay-To-Pay Overcharge
Current Investigations
A federal lawsuit has been filed against Newrez, specifically targeting its subsidiary, Specialized Loan Servicing (SLS), for overcharging consumers who processed their mortgage payments over the phone. The lawsuit alleges that SLS unlawfully profited by charging borrowers $7.50 for each phone transaction, despite the actual cost being much lower, violating federal and state debt collection laws.
This case highlights a broader issue, as similar lawsuits have been filed against other loan servicers. The key violations in this case include breaches of the Federal Debt Collection Practices Act and the Texas Debt Collection Act, which prohibit charging fees not explicitly authorized by the mortgage agreement or permitted by law.
The complaint argues that while mortgage servicers offer electronic payment options like ACH at very low costs (a few cents per transaction), some borrowers prefer the flexibility of paying by phone. However, SLS charged excessive fees for this service, leading to significant profits at the expense of consumers. This practice has resulted in millions of dollars in unauthorized charges to borrowers, many of whom had no option but to use SLS as their servicer.
The plaintiffs are seeking compensation for all illegal fees collected, as well as statutory, punitive, and treble damages. This case serves as a crucial step in holding mortgage servicers accountable for unlawful fees and ensuring consumer protection.
Key Points for Consumers:
The case focuses on SLS charging excessive fees for phone payments.
SLS allegedly profited millions by overcharging consumers for a service that costs much less.
The lawsuit seeks damages and restitution for all affected borrowers.
Consumers should be aware of any fees charged by their mortgage servicer and verify that they are legally justified.
Scott Hirsch Law Group PLLC is currently investigating similar allegations against SLS and other mortgage servicers. If you have additional questions or believe you may be affected, please reach out to Scott Hirsch Law Group PLLC for more information and assistance.