CHARLESTON — A West Virginia couple is suing LoanDepot.com alleging it violated state code by charging fees to pay over the phone.
Loan Depot, operating as a lender, mortgage broker and servicer nationwide, engages in mortgage loan origination and servicing, according to a complaint filed in U.S. District Court for the Southern District of West Virginia.
David A. Warren and Patricia A. Warren claim the company charges a $2.00 Pay-to-Pay Fee each time a borrower makes a payment over the phone, despite the actual cost of processing such transactions being significantly lower, leading to a profit for the company.
This fee collection is not authorized by customers' mortgage agreements, and no statute permits Loan Depot to impose Pay-to-Pay Fees.
The Warrens claim they borrowed $161,500 from Loan Depot, and were charged a $2.00 fee for telephone payments, a practice not permitted by their mortgage agreement.
The plaintiffs' mortgage documents explicitly did not authorize fees for scheduled, electronic, online, or telephone payments, according to the suit.
There is also a part of the West Virginia Code that prohibits misleading representations about adding fees to a consumer's existing obligation.
By charging unauthorized Pay-to-Pay Fees, Loan Depot violated the West Virginia Consumer Credit and Protection Act, according to the suit.
The company's actions were an attempt to collect fees not specified in the mortgage agreement and in violation of the WVCCPA, according to the suit.
The Warrens are seeking compensatory damages. They are represented by Denali S. Hedrick and Patricia M. Kipis of Bailey & Glasser; and Jason E. Causey of Bordas & Bordas.
U.S. District Court for the Southern District of West Virginia case number: 2:23-cv-00702