Fraud Charges against Ocwen Federal Bank

posted on:
March 15, 2006

author:
Staff

For immediate release

Montgomery, Alabama (March 15, 2006) - Multiple trials are set in several Alabama counties this year, beginning in April, against Ocwen Loan Servicing LLC, formerly Ocwen Federal Bank FSB. Ocwen, headquartered in West Palm Beach, Florida, is the largest third-party mortgage service provider in the United States.

According to complaints filed in Macon, Russell and Jefferson counties, Ocwen charged customers $95 default notice fees for each notice sent. The United States Department of Treasury’s Office of Thrift Supervision took exception to this practice. In April of 2004 Ocwen entered into an agreement with the Office of Thrift Supervision to cease charging these default notice fees to borrowers. Despite this agreement Ocwen has not gone through customers’ files and removed previous default notice charges from their accounts.

One of the first of these lawsuits will proceed to trial in Russell County. In that case the plaintiff, Debbie Long, alleges she was charged $95 default fees on several occasions and foreclosure fees of over $900 despite no foreclosure being initiated. Ms. Long also alleges Ocwen charged her late fees for payments sent on time and that these payments were reported to credit bureaus as being late.

Throughout, Ocwen failed to disclose what fees, finance charges and penalties would be charged in connection with Ms. Long’s mortgage, and other facts necessary for her to keep her mortgage current and prevent negative reporting to credit bureaus and possible foreclosure.

Attorneys representing Ms. Long are Rhon E. Jones and Scarlette M. Tuley with the law firm of Beasley, Allen, Crow, Methvin, Portis & Miles, P.C. in Montgomery, Alabama. The firm has 37 filed cases pending against Ocwen.

“The banking and mortgage industries should have the publics trust, but questionable activities by a few greedy and unethical operators give them a bad name,” Jones said. “How many people need to be victimized before each industry’s standards improve?”

About Beasley Allen
Headquartered in Montgomery, Alabama, Beasley Allen is comprised of over 45 attorneys and 200 support staff. Beasley Allen is a national leader in civil litigation, having settled verdicts and settlements amounting to nearly $15 billion.

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