Outcome: $5,000,000.00 Settlement and Injunctive Relief
Phillips, et al. v. Caliber Home Loans, Inc., Case No. 0:19-cv-02711-WMW-LIB in the United States District Court for the District of Minnesota
Tycko & Zavareei LLP settled a class action lawsuit against Caliber Home Loans, Inc., marking a significant achievement for consumer rights and fair debt collection practices. Our relentless pursuit of justice on behalf of the class has resulted in a $5,000,000 settlement, addressing the allegations that Caliber unjustly imposed additional processing fees on borrowers who made mortgage payments via telephone, interactive voice response (IVR), or the internet. Covering a class period from January 1, 2013, to January 21, 2020, the resolution signifies a commendable 29.39% of the total Pay-to-Pay fees collected by Caliber during this time, providing tangible restitution to affected homeowners across the United States.
Beyond the monetary compensation, the settlement stipulates meaningful injunctive relief which ushers in a new era of transparency and fairness in loan servicing. Effective January 21, 2020, Caliber has discontinued charging Pay-to-Pay Fees to all Settlement Class Members and other borrowers nationwide. Furthermore, for a duration of at least two years following the entry of the Final Approval Order, Caliber has committed to abstain from reintroducing such fees, ushering in an improved standard for the handling of mortgage payments. This resolution not only benefits the plaintiffs but also fosters a more equitable financial environment for all consumers. Tycko & Zavareei LLP served as class counsel in this case, ensuring both recompense for those affected and the implementation of enduring protections against similar predatory practices in the future.