Seterus, Inc. has been hit with a proposed class action lawsuit over claims that the loan servicing company sent letters in which it falsely threatened to accelerate and foreclose upon debtors’ mortgages.
Behind the case is a Georgia resident who allegedly received a form letter regarding her mortgage loan that read, in part (emphasis in complaint):
“If full payment of the default amount is not received by us . . . on or before [the Expiration Date], we will accelerate the maturity date of your loan and upon such acceleration the ENTIRE balance of the loan, including principal, accrued interest, and all other sums due thereunder, shall, at once and without further notice, become immediately due and payable.”
The suit alleges the ultimatum that the plaintiff pay the entire defaulted amount or face acceleration contradicts Seterus’ corporate policy. The company does not actually accelerate debts as long as consumers make at least a partial payment to bring the account less than 45 days delinquent, the case says.
According to the complaint, the form letter’s representations “intimidate borrowers into making payments to Seterus that are beyond their means and beyond what is necessary to avoid acceleration and save their homes from foreclosure.”