Kelly Guzzo, PLC, recently filed a class action case against Statebridge Company related to the unlawful assessment and attempted collection of amounts on second mortgages for periods where consumers were not sent monthly statements. More than a decade earlier, the plaintiffs’ previous second mortgage owner and servicer charged the amount off. As a result, the company ceased charging fees and interest on the account, as required by federal law, and stopped sending monthly statements. More than a decade later, Statebridge acquired the servicing rights to the plaintiffs’ second mortgage and, in alleged violation of federal and state law, retroactively assessed fees and interest on the accounts for the period during which the prior owner and servicer waived any right to those amounts because of the failure to send monthly statements.
As a result of these unlawful charges and Specialized Loan Servicing’s (SLS) attempts to collect the same, the plaintiffs allege that Statebridge violated § 1692e of the Fair Debt Collection Practices Act (“FDCPA”). In particular, the plaintiffs allege that Statebridge’s retroactive assessment and attempted collection of interest on second mortgages that have been charged off violates the FDCPA’s prohibition on the use of false, deceptive, or misleading communications regarding the “character, amount, or legal status of any debt.” In this specific instance, SLS unlawfully assessed and attempted to collect amounts totaling more than $90,000.00. Such conduct either reduces equity in borrowers’ homes or causes the repayment of improper amounts to Statebridge.
Kelly Guzzo, PLC, has helped numerous consumers battle against zombie second mortgages. Attorney Kristi Kelly was previously interviewed on the Planet Money podcast as part of National Public Radio’s recent investigation into the increase in zombie second mortgages.
If you have had retroactive interest assessed on your mortgage, please contact us to understand your rights. Kelly Guzzo, PLC continues to investigate and litigate similar matters by Statebridge and other servicers. If you stopped receiving monthly statements and then were threatened with foreclosure or foreclosed upon, we will review your situation for free to determine whether the loan charges are valid. There are no out-of-pocket costs for this consultation.
