CHARLESTON – An East Bank couple is suing Gateway Mortgage over allegations their loan was mismanaged through prolonged mitigation and the company failed to credit their payments.
Ashley Armstrong and Michael Armstrong Jr. filed a complaint in Kanawha Circuit Court against Gateway Mortgage Group LLC alleging misrepresentations in debt collection, unconscionable conduct in debt collection and illegal failure to credit payments.
The Armstrongs received a single family guaranteed loan on Dec. 23, 2016, offered through the USDA Rural Housing Service and serviced through Gateway Mortgage for $86,868. They allege that in 2018, they began to have difficulty making payments after Michael Armstrong's job and income changed. The Armstrongs claim Gateway denied their request for assistance and home retention options and refused to apply two of their more than $500 payments and moved for foreclosure on their home.
The Armstrongs seek actual damages, a trial by jury and all other just relief. They are represented by Bren Pomponio of Mountain State Justice Inc. in Charleston.
The case has been assigned to Circuit Judge Carrie Webster.
Kanawha Circuit Court case number 20-C-27