East Bank woman accuses Saxon Mortgage of illegal collection

CHARLESTON -- An East Bank woman is suing Saxon Mortgage after she claims the company illegally returned her payments and charged her illegal fees.

On Aug. 1, 2006, Lois M. Krause and the defendant entered into a loan secured by her home in the amount of $112,000, according to a complaint filed Aug. 29 in Kanawha Circuit Court.

Krause claims she was diligent in making payments toward the loan, but Saxon Mortgage set about on a course of illegal fees and return of payments.

In the last two years, the defendant returned payments on at least four to six occasions and added numerous inspection fees, attorney fees and other default-related fees over the course of servicing Krause's loan, according to the suit.

Krause claims the defendant failed and refused to credit the payments on several occasions, which is in violation of West Virginia code.

The defendant's adding of illegal fees and attempting to collect amounts not due on numerous occasions also is in violation of West Virginia code, according to the suit.

Krause is seeking civil penalties in the amount of $4,400 for each of the defendant's violations of West Virginia code. She is being represented by Daniel F. Hedges.

The case has been assigned to Circuit Judge Jennifer Bailey.

Kanawha Circuit Court case number: 11-C-1477