On January 6, a class action lawsuit was filed in the U.S. District Court for the Middle District of North Carolina against a mortgage servicing company. The plaintiff alleged, on behalf of herself and the entire class, the defendant mortgage service company violated the North Carolina Debt Collection Act and the North Carolina Unfair and Deceptive Trade Practices Act by imposing processing fees, referred to as “Pay-to-Pay Fees,” on borrowers who choose to make their mortgage payments via telephone. The plaintiff alleged these fees, which can amount to as much as $15 per transaction, were neither explicitly authorized by the borrowers’ mortgage agreements nor permitted under applicable law.

The plaintiff contended the defendant’s actions represented unfair and deceptive trade practices, as the fees significantly exceeded the actual cost incurred by the defendant to process such payments (which was estimated to be $0.50 or less per transaction). The plaintiff, who has been subject to these fees, sought to recover them on behalf of the affected class members, arguing the defendant’s practices have caused substantial financial harm.

The complaint mentioned the legality and fairness of additional fees imposed by mortgage servicers on consumers, particularly when such fees are not transparent or justified by actual costs.