WHEELING – A couple accuses two mortgage-related companies of abusive loan servicing practices.
Michael and Barbara Kandis filed their complaint in federal court against Mortgage Solutions of Colorado and The Money Source Inc.
The couple claims the companies violated the West Virginia Consumer Credit and Protection Act by hiding their identity as debt collectors, refusing to apply their payments to their account and regularly assessing default fees not allowed by law.
The plaintiffs claim they are unsophisticated in financial transactions and had never sought or obtained a home loan before this instance. They further allege Mortgage Solutions originated a loan of $57,539 secured by their residence at an annual percentage rate over 6.9%, which was significantly higher than the market rate at the time.
U.S. District Court for the Northern District of West Virginia case number 5:23-cv-343