Class Action Lawsuit Against Nationstar Energy for Servicing Home Loans in Compliance With Stimulus Plan
As more Class Action Lawsuits are filed in the Nation and State of New York one such a lawsuit has been filed against Nationstar. This Lawsuit was brought on behalf of a former customer who was a victim of Dish Network’s high percentage rate call center. The former attorney general of the state of New York has sent a letter to the Nationstar Corporation informing them that the customer has filed a Class Action Lawsuit against the Host NationStar. According to the news reports the letter from the AG sent to Nationstar also notified the company that they would be hit with a Class Action Lawsuit if they did not settle the dispute between the customer and the company. It appears that a lot of businesses are scared stiff and many of them are running scared.
Class Action Lawsuit Against Nationstar
A Class Action Lawsuit is a legal proceeding in which a plaintiff can file suit to recover compensation for injuries or other damages as a result of violations of federal securities laws. In this case the complaint alleges that Nationstar was in violation of the FDCPA when they refused to disclose material information on their residential customers in the commercial market. According to the complaint, a customer purchased one hundred and twenty-five dollars worth of home phone service from the commercial market on a monthly bill for twelve months. The customer was unaware that the monthly bill for the residential portion of the bill fell below the thirty-five dollar per month threshold that is required by the Fair Debt Collection Practices Act. This is a violation of the FCRA and according to the complaint, Nationstar violated the FDCPA.
The Attorney General of the state of New York has announced that they have filed a complaint against the Nationstar Corporation with the Federal Trade Commission of the United States.
This is a class action lawsuit against Nationstar because according to the complaint, they refused to disclose material information on their residential customers in the commercial marketplace. The complaint alleges that Nationstar was in violation of the Federal Debt Collection Practices Act (FDCPA) when they did not inform the customer that they were assessing a penalty for late payments. The complaint further claims that the defendant failed to inform the customer that they were in a settlement process and did not provide any information about the status of the process at any point during the settlement process.
This is a class action lawsuit against Nationstar Energy Company that was brought by the New York Attorney General.
According to the complaint the Attorney General submits that they did in fact find that the company was in violation of the FDCPA when it refused to disclose material information on residential customers in the commercial marketplace. According to the complaint the Attorney General contends that they obtained documentation from a former Nationstar employee who says that the refusal to disclose material information on residential customers goes back to the time when Nationstar was being investigated for securities fraud by the New York State Department of Financial Services. The Attorney General’s Complaint further says that this violates the terms of the Settlement Agreement between Nationstar and the Federal Trade Commission.
Nationstar Energy is one of the largest mortgage lenders in the country and one of the largest seller of home mortgages.
Their revenues have been declining steadily and they filed for bankruptcy in August of 2021. Nationstar Energy filed for bankruptcy because they were unable to come up with the cash required to service all of their debt. The company received a notice from the United States Federal Reserve that said they could not meet all of their debt obligations and so they filed for bankruptcy. So they received protection from the federal government under the US government’s sovereign immunity law.
As far as I’m concerned these actions by Nationstar are entirely unjustified and the plaintiffs’ attorney’s complaint has merit.
If the company cannot provide accurate information regarding their servicing history or modification approvals then they should be held in contempt of court. If they refuse to modify or servicing mortgages based on false information or if they do not make repairs and updates to mislead borrowers into refinancing without HAMP, homeowners could be put at substantial risk. Please consider all this in 2021.