Click Fraud Protection $1.6 Million Settlement in RoundPoint Mortgage Convenience Fees Class Action - Tycko & Zavareei LLP
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HomeSuccesses$1.6 Million Settlement in RoundPoint Mortgage Convenience Fees Class Action

$1.6 Million Settlement in RoundPoint Mortgage Convenience Fees Class Action

Outcome: $1,600,000.00 Settlement and Injunctive Relief

Elbert v. RoundPoint Mortgage Servicing Corporation, Case No.: 3:20-cv-250-MMC in the United States District Court for the Northern District of California

TZ achieved a class action settlement that has put the interests of homeowners first. In the case against RoundPoint Mortgage Servicing Corporation, plaintiffs alleged that the mortgage servicer improperly charged and collected convenience fees for telephone and IVR mortgage payments, in violation of California’s Rosenthal Fair Debt Collections Act and Unfair Competition Law (UCL), as well as breaching the mortgage agreement with the plaintiff. The parties reached a settlement after surviving a partial motion to dismiss and mediation. This settlement not only signifies our firm’s commitment to upholding consumer rights but also highlights our persistence in challenging unlawful debt collection practices.

The outcome of this lawsuit includes a $1,600,000 settlement fund, which enables those affected to receive fair compensation without the burden of claim forms. This success reflects a broader impact, transforming industry practices for the better: RoundPoint has ceased its collection of convenience fees as of June 1, 2021, and will maintain this cessation for at least two years following final approval of the settlement. Not only does this settlement offer financial redress to the class members, but it also ensures lasting change, demonstrating the power of collective action and the justice that can be achieved through the legal system. Our firm remains resolved to fight for and protect the rights of consumers, validating the trust placed in us by the numerous homeowners we represented.

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