Class action lawsuit claims Seterus used unlawful debt collection practices

By Bree Gonzales | Jan 7, 2019

WILLIAMSPORT — A home owner has filed a class action lawsuit against Seterus Inc., a specialty mortgage service company, citing alleged violations of the Fair Debt Collection Practices Act, violations of the Pennsylvania Fair Credit Extension Uniformity Act, and violation of the Pennsylvania Unfair Trade Practices and Consumer Protection Law.

Kay Wenger filed a complaint on behalf of herself and others similarly situated on Dec. 18 in the U.S. District Court for the Middle District of Pennsylvania against Seterus Inc., alleging the specialty mortgage service uses unlawful and unfair debt collection practices to collect upon residential consumer mortgage loans.

According to the complaint, the plaintiff alleges that on April 1, 2016, her mortgage was transferred to Seterus while in a state of default. 

During the course of Seterus’ servicing of plaintiff’s loans, Seterus occasionally alleged that her loans became more than 45 days delinquent. Seterus allegedly sends a form letter that it refers to as a “Pennsylvania Final Letter” to consumers that become more than 45 days delinquent in an effort to coerce and intimidate consumers into paying the entire default amount of the loan. 

The plaintiff holds Seterus Inc. responsible because the defendant allegedly has attempted to collect debt by using unfair and unconscionable means, including false threats of acceleration and foreclosure.

The plaintiff requests a trial by jury and seeks an order enjoining further violations of these statutes by Seterus and its agents and employees; statutory damages, including civil penalties; attorneys’ fees and costs; and costs of this action be taxed to Seterus. She is represented by Benjamin Johns of Chimicles & Tikellis in Haverford; Scott Harris of Whitfield Bryson & Mason in Raleigh, North Carolina; and Edward Maginnis and Asa Edwards of Maginnis Law in Raleigh, North Carolina.

The U.S. District Court for the Middle District of Pennsylvania Case No. is 4:18-cv-02393-MWB.

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Organizations in this Story

Chimicles & Tikellis LLP Maginnis Law, PLLC U.S. DISTRICT COURT FOR THE MIDDLE DISTRICT OF PENNSYLVANIA Whitfield Bryson & Mason LLP

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