Nationstar Mortgage (Mr. Cooper) Withdrew Additional Payments Without Authorization, Class Action Claims

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A Nevada resident alleges Nationstar Mortgage, LLC (Mr. Cooper) wrongfully withdrew from his bank account two additional mortgage payments without authorization to do so.

The eight-page case claims that although the plaintiff was not signed up for Mr. Cooper’s AutoPay, the mortgage loan servicer nevertheless initiated an electronic funds transfer without permission. Per the suit, the plaintiff had already made his monthly mortgage payment when Mr. Cooper wrongfully withdrew the additional funds. 

Alleged in the lawsuit are violations of the Electronic Funds Transfer Act (EFTA), a law designed to provide the basic framework establishing the rights, liabilities and responsibilities of participants in electronic funds and remittance transfer systems. By law, electronic funds are defined as “any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument,” that’s initiated through an electronic terminal, telephonic instrument or computer or magnetic tape “so as to order, instruct, or authorize a financial institution to debit or credit an account.” The ETFA also governs preauthorized electronic funds transfers, i.e. transfers authorized in advance to occur at substantially regular intervals, the suit says. 

Per the lawsuit, Nationwide initiated without authorization electronic transfers with the plaintiff’s bank account without providing reasonable advance notice to the man of the amount to be transferred and the scheduled date of transfer. The case says Mr. Cooper did not timely refund the plaintiff for the allegedly unauthorized transfers.

Also alleged in the complaint are violations of the Nevada Deceptive Trade Act.

“Nationstar’s false representations include, among other things, falsely representing that it had permission to withdraw money from Plaintiff’s account,” the case alleges. “As a direct and proximate result of Defendant’s violation of law, Plaintiff and Class members have lost money.” 

The lawsuit looks to represent all natural persons in Nevada whose mortgage loan servicing rights were transferred to Nationstar and who had executed an electronic funds transfer with their prior services and from whom Nationstar initiated electronic funds transfers that were inconsistent with the prior existing electronic funds transfer authorization executed with the prior servicer.

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