ALBANY, N.Y. (CN) - Litton Loan Servicing charges homebuyers illicit "late fees" that are "a virtual ransom: Pay them or lose your home," a class action claims in Federal Court.
Plaintiffs claim the defendants run their game nationwide. "Defendants routinely seek to collect and do collect various improper 'late fees and charges' that are either inflated or not legally sue and owing, from consumers, under the mortgage contract. ... Consumers, terrified over the prospect of losing their home, acquiesce to the excess fees. In short, the fees are a virtual ransom: Pay them or lost your home," the complaint states.
Here are the defendants: Litton Loan Servicing LP, HSBC Bank USA NA, as Trustee under the Pooling and Servicing Agreement dated August 1, 2006, Ace Securities Corp. Home Equity Loan Trust Series 2006-FM1, Asset Backed Pass-Through Certificates.
Plaintiffs are represented by Richard DiMaggio of Glenville, N.Y.
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