18 October 2024. In a significant win for mortgage borrowers across North Carolina, Chief District Judge Catherine C. Eagles of the United States District Court for the Middle District of North Carolina has denied the motion to dismiss filed by Dovenmuehle Mortgage, Inc. (DMI) in a lawsuit concerning unlawful fees.
The case, led by plaintiff George Custer on behalf of himself and a putative class, challenges the legality of extra fees charged by DMI for mortgage payments made via phone. The lawsuit claims that such practices violate both the North Carolina Debt Collection Act (NCDCA) and the North Carolina Unfair and Deceptive Trade Practices Act.
Judge Eagles’ decision to deny the motion to dismiss affirms that Mr. Custer has made a valid claim under North Carolina’s debt collection and consumer protection statutes. This ruling marks a pivotal step forward in holding DMI accountable for its alleged misconduct.
Katherine M. Aizpuru, one of the attorneys representing Mr. Custer, hailed the decision as a crucial advancement for consumer rights. “The defeat of the motion to dismiss represents a step forward for mortgage borrowers in North Carolina,” Aizpuru stated. “It ensures that consumers have the opportunity to challenge unfair practices and seek justice.” The plaintiffs are represented by Katherine Aizpuru of Tycko & Zavareei LLP and James L. Kauffman of Bailey & Glasser, LLP.
The case will now move forward, potentially impacting how mortgage servicers conduct business in the state. This decision underscores consumer advocates’ commitment to protecting consumers from deceptive business practices.
The case is George Custer v. Dovenmuehle Mortgage, Inc., No. 1:24-CV-306 in the United States District Court for the Middle District of North Carolina.