Seterus Hit with Lawsuit Over “False and Misleading” Debt Collection Letters
Last Updated on December 9, 2020
Important Information
Attorneys working with ClassAction.org are no longer investigating this matter. The information here is for reference only. A list of open investigations and lawsuits can be viewed here.
Case Update
- December 9, 2020 – Investigation Closed, Settlement in the Works
- Thank you to everyone who contacted us in regard to this investigation. At this point, attorneys working with ClassAction.org no longer need to hear from people who received letters from Seterus as a settlement is currently in the works. Any further updates will be posted to this page, so be sure to check back soon or sign up for our newsletter for the latest. The information below was posted when the investigation began and exists for reference only.
At A Glance
- This Alert Affects:
- Anyone who fell behind on mortgage payments and then received a letter from Seterus regarding their non-payment.
- What’s Going On?
- Seterus has been hit with class action lawsuits that allege the company sent out debt collection letters that falsely implied that homeowners’ loans would be accelerated – meaning the full amount of the mortgage would be due – if they didn’t pay the money they owed within a certain time period. A copy of these letters can be seen below.
- Who Is Seterus Anyway?
- Seterus Inc. is a company that specializes in collecting delinquent residential mortgage loans.
Attorneys working with ClassAction.org would like to hear from anyone who received a debt collection letter from a company called Seterus after falling behind on their mortgage payments.
Seterus, a company that specializes in collecting delinquent home loans, has been sued for allegedly making false and misleading statements to pressure consumers into making immediate payments. Now, more people who received the letter are needed to come forward to help strengthen the class action litigation.
What Did These Letters from Seterus Look Like Exactly?
A copy of the letters can be seen below.
What’s the Issue with the Letters?
The letters allegedly stated that the recipient had an ultimatum: to either pay the entire balance of their missed payments or to face acceleration. If Seterus accelerates a loan, the homeowner would have to immediately pay his or her entire mortgage loan, including principal and accrued interest, or face foreclosure.
According to the lawsuit, it is Seterus’ own policy, however, to never accelerate a loan so long as the person makes a partial payment within a specified time period. Therefore, Seterus’ statements serve only to create a false sense of urgency and intimidate consumers into making payments beyond what’s needed to save their homes, the suit claims.
Because Seterus is making statements that deprive consumers of their ability to make informed decisions and threatening action it does not intend to take, the company is in violation of federal debt collection law, the lawsuit alleges.
How Can a Class Action Help?
If successful, a class action lawsuit could help recipients of the letters collect money for Seterus’ alleged violations. It could also help ensure the company stops putting any potentially misleading statements in its collection letters.
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