Mortgage Companies are wrongfully profiting from “fees”

The Fair Debt Collection Practices Act (FDCPA) was put in place to eliminate the abusive practices that can occur in the collection of consumer debt.

Large mortgage servicing companies, such as OCWEN and Nationstar, have violated the FDCPA by charging consumers excessive “processing” or “convenience” fees resulting in illegal kickbacks to the servicing company.

This situation generally arises when consumers need to pay quickly to avoid late fees. These companies may steer them towards having to pay over the phone, for example, and the “processing” or “convenience” fee will be much less than the potential late fee facing the consumer. The consumer is, therefore, more likely to pay the “processing” or “convenience” fee resulting in a profit to the company.

If you or someone you know may have been charged excessive “processing” or “convenience” fees when making mortgage payments, please fill out the contact form below or give us a call at 205-453-0093.