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HomeSuccesses$3,325,000 Settlement in Pay to Pay Fees Class Action Against M&T Bank

$3,325,000 Settlement in Pay to Pay Fees Class Action Against M&T Bank

Outcome: $3,325,000 Settlement

Silveira v. M&T Bank, Case No.: 2:19-cv-06958-ODW-KS in the United States District Court for the Central District of California

In the case of Silveira v. M&T Bank, Tycko & Zavareei LLP represented the plaintiff, Lisa Silveira, and a class of homeowners who filed a lawsuit against M&T Bank, alleging improper charges. The bank was accused of charging convenience fees—referred to as “Pay-to-Pay Fees”—for making mortgage payments made online or by phone.

Legal Claims

Plaintiffs claimed that these Pay-to-Pay Fees violated multiple laws, including:

  • The federal Fair Debt Collection Practices Act (FDCPA)
  • California’s Rosenthal Fair Debt Collection Practices Act (Rosenthal Act)
  • California’s Unfair Competition Law (UCL)

Additionally, plaintiffs alleged that such fees breached the terms of the borrowers’ mortgage agreements.

Class Details

The lawsuit was filed on behalf of homeowner borrowers in the United States, including California, who had their mortgage loans serviced by M&T Bank. The defined class period extended from August 9, 2015, through May 6, 2021. During this time, any borrower from whom M&T Bank collected Pay-to-Pay Fees was automatically included in the settlement class.

Settlement Terms

The settlement reached in the case includes the following terms:

  • M&T Bank agreed to create a settlement fund amounting to $3,325,000.
  • Payments to class members were to be distributed proportionally based on the amount of Pay-to-Pay Fees each member was charged during the class period.

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