Lawsuit Investigation: Are Borrowers Being Charged Illegal Convenience Fees?
Last Updated on October 3, 2025
Investigation Complete
Attorneys working with ClassAction.org have finished their investigation into this matter. Check back for any potential updates. You can also sign up for our free newsletter for the latest in class action news and settlements.
If you still have questions about your rights, contact an attorney in your area as there is a time limit for filing all lawsuits. The information on this page was posted when the investigation began and is now for reference only.
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At A Glance
- This Alert Affects:
- People who were charged a flat fee to make a payment on a loan, debt, mortgage or credit card.
- What’s Going On?
- Attorneys working with ClassAction.org are investigating whether certain creditors are charging borrowers convenience fees – such as pay-by-phone fees and online service charges – to make payments on their debts. These fees may be illegal in some states, and it’s possible that class action lawsuits could be filed to help consumers get their money back and put an end to any illegal practices.
- Which Creditors Are Being Investigated?
- IC System, Inc.; JP Morgan Chase; Caine & Weiner Company, Inc.; Mariner Finance, LLC; Statebridge Company; Nationstar Mortgage (doing business as Mr. Cooper); LoanCare LLC; and Fifth Third Bank
- What States Are Being Looked Into?
- Attorneys are particularly interested in speaking to people who paid the fees in North Carolina, Maryland, Michigan, Florida, California and South Carolina.
Attorneys working with ClassAction.org would like to speak to consumers who were charged convenience fees by the following companies to make payments on loans, debts, mortgages or credit cards:
- IC System, Inc.
- JP Morgan Chase
- Caine & Weiner Company, Inc.
- Mariner Finance, LLC
- Statebridge Company
- Nationstar Mortgage (doing business as Mr. Cooper)
- Fifth Third Bank
They’re investigating whether these companies are charging illegal convenience fees in certain states and whether class action lawsuits could be filed. Specifically, the attorneys are looking to speak with people who were charged these fees in North Carolina, Maryland, Michigan, Florida, California and South Carolina.
How Could a Class Action Lawsuit Help?
A class action lawsuit could help consumers get back the money they paid in improper fees to their bank or creditor. A successful case could also put an end to any illegal practices.
Further, some states may allow for the collection of statutory damages – which means that, in a successful case, the consumer may be entitled to an additional award under the law.
Lawsuits Allege Certain Fees Are Illegal
A few lawsuits have already been filed against mortgage servicers alleging that the companies levied exorbitant surcharges on customers who paid their mortgages over the phone or online. The suits also allege that the companies
- Should be compensated from interest on the loans – and not from what are sometimes called “pay-to-pay” fees
- Charge fees not expressly provided for in their contracts with borrowers
- Violate state law by marking up the actual cost to process the mortgage payments and pocketing the difference
The lawsuits claim that it costs around $0.50 to process a mortgage payment; however, some of these companies are alleged to have charged between $10 and $19 for these convenience fees.
According to the Consumer Financial Protection Bureau, pay-to-pay or convenience fees are only legal if the borrower agreed to pay them when they first took out the debt or a law specifically allows for the fee.
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