Outcome: $18,181,898.95
Alexander v. Carrington Mortgage Services, LLC, Case No.: 1:20-cv-02369-RDB in the United States District Court for the District of Maryland
On November 10th, 2022, a groundbreaking settlement was reached between Carrington Mortgage Services LLC and borrowers in the Alexander v. Carrington Mortgage Services LLC (Case No.: 1:20-cv-02369-RDB) lawsuit. The plaintiffs had alleged that Carrington’s practice of charging convenience fees for making payments over the phone or online violated consumer protection laws at both state and federal levels.
The settlement, approved by Judge Richard D. Bennett of the United States District Court for the District of Maryland, included a common fund totaling $18,181,898.95 representing 35% of convenience fees collected by Carrington from 2016 – 2021. Each class member will receive a cash payment without having to submit a claim form.
In addition to the cash payments to customers who were charged fees for making payments over the phone or online, as part of the settlement agreement, Carrington is prohibited from charging customers any pay to pay fees for three years; previously they were earning nearly $8 million per year through these charges alone according to court documents in Final Approval Order issued on November 10th.
The settlement holds Carrington accountable for its actions and provides much-needed relief for those customers who were charged an unnecessarily high fee for paying their mortgage over the phone or online. It also serves as an example to other companies that might be considering similar practices in the future so that consumers can rest easy knowing their rights are being protected under consumer protection laws at both state and federal levels.
The case is Alexander v. Carrington Mortgage Services, LLC, Case No.: 1:20-cv-02369-RDB in the United States District Court for the District of Maryland. It consolidates two other cases, Thomas-Lawson v. Carrington Mortgage Services, LLC, Case No. 2:20-cv-7301-ODW in the United States District Court for the Central District of California, and Dawkins v. Carrington Mortgage Services, LLC, Case No.0:20-cv-60998-RAR in the United States District Court for the Southern District of Florida.