JPMorgan Chase accused of failing to apply payments to loan

CHARLESTON – A woman is suing JPMorgan Chase Bank for failing to apply payments she made to her loan.

Samuel I. White was also named as a defendant in the suit.

On Feb. 12, 2009, Shirley Cummings instituted a civil action against JPMorgan Chase and pursuant to the terms of the settlement agreement on April 26, 2011, a stipulated order of dismissal with prejudice was entered setting forth the terms of the settlement, according to a complaint filed Feb. 1 in Kanawha Circuit Court.

Cummings claims beginning Feb. 1, 2011, she began to timely make monthly payments pursuant to the terms of the agreement and has made each payment in accordance with the schedule.

Shortly thereafter, Cummings began to experience problems with JPMorgan Chase servicing of her loan, according to the suit.

Cummings claims JPMorgan Chase received her payments, but did not apply them to her account pursuant to the terms of the agreement.

The first two payments Cummings made were held for two months before being applied to the account and the fourth and fifth payments were held until August before being applied to the account, according to the suit.

Cummings claims the bank added late fees to her account and held her eighth payment for more than one month before applying it to her account.

In January, the defendants began foreclosure proceedings on Cummings home and demanded immediate payment of $30,748.87, according to the suit.

Cummings claims the defendants’ actions caused her annoyance and inconvenience; fear of the loss of her home; and other damages.

JPMorgan Chase breached its contract with Cummings and its actions were intentional, wanton and/or reckless, according to the suit.

Cummings claims White owed a duty to provide her with accurate information about her loan account and breached that duty by demanding monies inconsistent with the agreement.

The defendants violated West Virginia code by seeking to collect illegal charges that are not authorized by agreement or law, according to the suit.

Cummings is seeking actual damages and civil penalties. She is being represented by Daniel F. Hedges.

The case has been assigned to Circuit Judge Carrie Webster.

Kanawha Circuit Court case number: 13-C-221