On October 27, 2020, the Pennsylvania Court of Common Pleas issued a final approval of a settlement in a class action against Loancare, LLC, for overcharged late fees. The complaint alleged that the defendant overcharged class members when assessing late fees on mortgage loans obtained through the FHA program administered by the United States Department of Housing and Urban Development.
The settlement requires LoanCare to reimburse class members 100% of overcharges on late fees, plus 2% interest. Class members whose mortgages are currently serviced by LoanCare will receive credit for the overcharges and their accounts will be corrected. Class members whose mortgages are no longer serviced by LoanCare will receive a check for the amount of over-assessed late fees.
The case is Gillespie v. Loancare, LLC, No. 02806 in the Pennsylvania Court of Common Pleas for Philadelphia County. The class is represented by consumer protection lawyers Irv Ackelsberg and Peter Leckman.