Lieff Cabraser has filed a class action lawsuit in federal court in New York alleging that Select Portfolio Servicing, Inc. is defrauding customers through improper interest rate change calculations and illegal collection of late fees on post-acceleration mortgage loans. As a result, customers may be paying too much for mortgage loans.
The Amended Complaint in the lawsuit, filed June 27, 2019, alleges an improper late fee scheme by Select Portfolio Servicing that is contrary to the law of at least six U.S. states and to the underlying mortgage notes. As detailed in the Complaint, plaintiffs also allege a scheme for the common overcalculation of interest rates by SPS in breach of its Adjustable Rate Mortgage agreements as well as a common unlawful inspection fee scheme that allowed SPS to charge inspection fees that were neither reasonable nor appropriate to protect its interests.
The suit is brought on behalf of the named individual plaintiffs as well as Class claimants as defined as follows:
Multistate Late Fees Class:
All borrowers residing in the states of California, Illinois, Massachusetts, New Jersey, New York, Pennsylvania, and Vermont who have or had mortgage agreements for loans serviced by SPS that were accelerated during the relevant statutes of limitation periods.
Interest Calculation Class:
All borrowers nationwide who have or had adjustable rate mortgage agreements for loans serviced by SPS during the period of an interest rate adjustment during the relevant statutes of limitations periods.
Inspection Fees Class:
All borrowers nationwide who have or had mortgage agreements for loans serviced by SPS, who have occupied the property for which the loan serviced by SPS was obtained, and who have had inspection fee(s) charged during the relevant statutes of limitations periods.
The lawsuit seeks restitution for misconduct including breach of contract, violation of the covenant of good faith and fair dealing, and violation of the Fair Debt Collection Practice Act as well as New York General Business Law, California Unfair Competition Law, the federal RESPA laws, and the federal Truth in Lending Act. Plaintiffs seek class certification as well as compensatory, statutory, and punitive damages.
Contact a Consumer Protection Lawyer at Lieff Cabraser
If you have a mortgage serviced by Select Portfolio Servicing, you may be paying too much, including improper and illegal late fees. Contact a national consumer rights lawyer at Lieff Cabraser today for a free, no-obligation review of your potential case.