MILWAUKEE (CN) – Ocwen Loan Servicing wrongfully charged fees without disclosing them to customers or to bankruptcy judges or trustees, a class action on behalf of bankrupt homebuyers claims in Federal Court.
The complaint states: “Such practice, which amounts to a secret ‘profit center’ enjoyed by defendant Ocwen Loan Servicing, LLC, is a willful violation of the automatic stay conferred by 11 U.S.C. § 362 and entitles plaintiffs to monetary damages and injunctive relies, as provided by the Bankruptcy Code.”
Ocwen, whose residential loan offices are in West Palm Beach and in Bangalore and Mumbai, India, had 447,142 loans with an unpaid principal balance of $53.12 billion as of June 30, 2007, the complaint states. Twenty-four percent of those properties are in California.
Plaintiffs claim Ocwen illegally imposes charges after debtors files for bankruptcy and without getting court permission to do so. They demand accounting, damages and an injunction. Their lead counsel is Michael Watton.