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This settlement is closed!
Please see what other class action settlements you might qualify to claim cash from in our Open Settlements directory!
UPDATE:
- The settlement was granted final approval on April 16, 2021.
- Let Top Class Actions know when you receive a check in the comments section below or on our Facebook page.
Loan servicing company Seterus Inc. has agreed to pay $7 million to settle claims it unlawfully threatened homeowners with foreclosure in its notice of default letter.
Homeowners in Alabama, California, Florida, Georgia, Kansas, Michigan, Missouri, New Jersey, New York, North Carolina, and Pennsylvania who received notices of debt and possible acceleration on their mortgage loans from Seterus may benefit from this settlement.
The letters must have been dated during the following period in each state:
- Alabama: May 7, 2018, through Feb. 28, 2019
- California: Feb. 7, 2018, through Feb. 28, 2019
- Florida: Jan. 25, 2018, through Feb. 28, 2019
- Georgia: March 1, 2018, through Feb. 28, 2019
- Kansas: Aug. 24, 2017, through Feb. 28, 2019
- Michigan: Sept. 4, 2012, through Feb. 28, 2019
- Minnesota: May 24, 2018, through Feb. 28, 2019
- Missouri: Nov. 13, 2017, through Feb. 28, 2019
- New Jersey: Sept. 12, 2017, through Feb. 28, 2019
- New York: Sept. 7, 2017, through Feb. 28, 2019
- North Carolina: Nov. 2, 2013, through Feb. 28, 2019
- Pennsylvania: Dec. 18, 2017, through Feb. 28, 2019
A class action lawsuit alleged Seterus violated the federal Fair Debt Collection Practices Act (FDCPA), as well as other debt collection laws in several states.
Seterus, a subsidiary of International Business Machines Inc. (IBM), denies the allegations made in the class action lawsuit.
Class Members do not need to submit a claim form in order to benefit because Seterus’ records will be used in determining eligibility.
Payments will be made via check and will vary depending on which Class the claimant belongs to.
The Alabama Class, California Class, Florida Class, Georgia Class, Kansas Class, Minnesota Class, Missouri Class, New Jersey Class, New York Class, and Pennsylvania Class collectively are referred to as the FDCPA Classes, which will receive different amounts than the Michigan Class and North Carolina Class.
The FDCPA Classes rely solely on federal relief and are thereby subject to the act’s cap of the lower of $500,000 on statutory damages or 1 percent of the defendant’s net worth, according to the settlement agreement.
The FDCPA further requires individual Class Members be “in default” at the time Seterus started servicing the loan.
The FDCPA Classes will receive about $100 gross for each unique loan associated with any Class Members. The amount will be prorated in states where $100 for each Class Member
would exceed the cap.
Members of the Michigan Class can expect to receive approximately $150 gross per unique loan, while members of the North Carolina Class will receive $286.64 gross per unique loan.
North Carolina is the only state in which summary judgment and class certification in the Seterus class action lawsuit had already been addressed.
These gross amounts will be reduced after administrative expenses, attorneys’ fees, and other costs have been deducted from the settlement fund.
More information on the calculation of settlement amounts can be found in Section 8 of the settlement agreement.
A final hearing in the case is scheduled for April 9, 2021.
No claim form is required.
The deadline to opt out of the settlement is March 19, 2021.
Who’s Eligible
Homeowners in Alabama, California, Florida, Georgia, Kansas, Michigan, Missouri, New Jersey, New York, North Carolina, and Pennsylvania who received notices of debt and possible acceleration on their mortgage loans from Seterus between the applicable dates in each state.
Potential Award
Varies.
- The FDCPA Classes will receive about $100 gross for each unique loan associated with any Class Members. The amount will be prorated in states where $100 for each Class Member would exceed the cap.
- Members of the Michigan Class can expect to receive approximately $150 gross per unique loan.
- Members of the North Carolina Class will receive $286.64 gross per unique loan.
The gross amounts will be reduced after administrative expenses, attorneys’ fees, and other costs have been deducted from the settlement fund.
Proof of Purchase
N/A
Claim Form
NOTE: If you do not qualify for this settlement do NOT file a claim.
Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.
Claim Form Deadline
N/A
Case Name
Koepplinger v. Seterus Inc., Case No. 1:17-cv-00995 in the U.S. District Court for the Middle District of North Carolina
Final Hearing
04/09/2021
Settlement Website
Claims Administrator
Koepplinger, et al. v. Seterus Inc., et al.
Settlement Administrator
P.O. Box 43502
Providence, RI 02940-3502
1-866-658-6769
info@seterusfinalletteraction.com
Class Counsel
Scott C. Harris
Patrick M. Wallace
WHITFIELD BRYSON LLP
Edward H. Maginnis
Karl S. Gwaltney
Asa C. Edwards
MAGINNIS HOWARD LAW PLLC
Defense Counsel
Brian A. Kahn
R. Locke Beatty
MCGUIREWOODS LLP
Read About More Class Action Lawsuits & Class Action Settlements:
17 thoughts onSeterus to Pay $7M to Settle Class Action Lawsuit over Alleged Unlawful Debt Collection Practices
All seterus did to me I can’t fit 3 years charged tax and insurance that were paid sent registered letter threatening foreclosure they gave a modification only because they destroyed my credit while they worked on their modification. I was in hospital when it was delivered by messenger to sign told I had to get it back today so they could stop foreclosure, I called because there was no intrest rate and no term of years it lowered my payments to 1200 instead of 2000 I was paying but I oly owed 46k due in 3years 3 months later I get the copy of the modification for 32yrs@6.5 intrest and added 40k to bal owed my loan was sold I still haven’t gotten anthing but foreclosure notices lawyer tell get another modification.
Bank of America screwed our loan up Admitting to us they did! They destroy our perfect credit. They told us they would fix it! Two weeks later they sold us to Seterus. Seterus acquired our loan and took off right where BOA left off. Saying we were in default on our loan.
After many phone calls back and forth. They told us its BOA’s problem and that we needed to fix it with them. When calling BOA they told us they no longer own our loan and that it’s Seterus problem now! How convenient for the both of them!
After tremendous amounts of our time, bank account records, money, accountants and lawyers. which I might add my wife had gotten further then the lawyer we had hired. We proved we had never missed a payment. BOA misapplied one of our payments and washed their hands instead of fixing the problem.
In the end Seterus left a message and admitted on our answering machine that “we were current on our loan but there is nothing they can do about it” !!!!! I still have the recording till this day!
Seterus sold our loan and along with BOA destroyed our credit and our lives for a long five year fight over a mistake that they made. In the end my wife and I received a check for $63.39
It amazes me that bank scum can do this walk away with fat pockets and spit out the common public like garbage!
F-you BOA/Seterus.
Did any of Seterus’ fat CEO or executives who collected bonuses profited thru their illegal practice get jail time?
That will be the best settlement ever. (Or maybe they just all dropped dead from covid?)
Is there a timeframe to expect checks?
How do I check to make certain that I was included in this Lawsuit? I completed all documentation. Please let me know.
Thank you.
We live in Texas but have experienced these same practices from Seterus. Can we be added to this lawsuit?