Online processing fees or pay-by-phone fees are everywhere and without question… annoying. In most cases these fees are unfortunately legal, but mortgage companies who charge “convenience fees” may be violating their own contracts.
If you are a homeowner who has been charged extra for making mortgage payments by phone or online, you may have cause to take legal action against your loan servicer.
Were you charged a convenience or payment fee for paying your mortgage by phone or online? If you were charged a payment fee for paying your mortgage online or over the phone, you may qualify to join a mortgage payment fee class action lawsuit investigation. Fill out a contact form here!
Normally, a “convenience fee” is charged by merchants when customers choose to pay for goods or services when using a credit card or some other non-cash payment method. In many cases, merchants charge these fees in order to discourage customers from using credit cards. For example, an online ticket broker, such as Ticketmaster or StubHub, both legally add convenience fees to the price of event tickets.
We see these kinds of convenience fees all over the place, such as for online movie or concert ticket purchases. However, the terms of most mortgage agreements do not actually allow for these fees to be charged. Some mortgage lenders may be violating their own agreements with borrowers by charging these kinds of fees.
However, many of these fees are specifically prohibited in most mortgages.
This is different from a possible servicing fee, which might be rolled into a mortgage when the servicer collects and makes escrow payments while also passing on the interest and principal payments to the holder of the note.
Standard form mortgage agreements allow loan servicers to pass along only the actual costs of processing payments (as noted above, a usually no more than a few cents). By tacking on excessive amounts, these companies are violating the Fair Debt Collection Practices Act and the Rosenthal Act as well as their own contractual agreements.
As a borrower, it’s easy to assume that you have do everything you can to stay current with your mortgage payments, even if that means paying fees. However, as a borrower, you also have plenty of rights.
When it comes to fees, you should always review your billing statements closely and ask questions about any fees that seem out of the ordinary. If you’re not sure where a fee came from, contact the mortgage company in writing to ask for a further explanation.
Were you charged a convenience or payment fee for paying your mortgage by phone or online? If you were charged a payment fee for paying your mortgage online or over the phone, you may qualify to join a mortgage payment fee class action lawsuit investigation. Fill out a contact form here to submit your information.