Mortgage Lender's Alleged Sleazy Collection Practices Leads To Civil Suit Charging Violations Of WV Consumer Credit & Protection Act

In Jackson County, West Virginia, The West Virginia Record reports:

• A Jackson County couple allege their mortgage lender crossed the line in attempting to collect on their delinquent account. Charles E. and Tammy J. Hatcher of Ravenswood filed suit on March 31 against Vanderbilt Mortgage and Finance. In their complaint filed in Jackson Circuit Court, the Hatchers allege the Maryville, Tenn.-based company employed inappropriate techniques, including threats of arrest, and relaying message through third-parties, in an attempt to get the Hatchers current on their mortgage payments.(1)

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• In their suit, the Hatchers accuse Vanderbilt of unlawful debt collection, unreasonable publication and misrepresenting the status of their account. As a result of Vanderbilt's actions, the Hatchers allege they "suffered fear of loss of home, and annoyance and inconvenience associated with the abusive and unconscionable servicing of their contract." The Hatchers seek damages in the amount of $4,300 in civil penalties for each violation of the state Consumer Credit and Protection Act, attorney fees and court costs. They are represented by Sara Bird with Mountain State Justice of Charleston.(2)

For the story, see Jackson couple sues Tenn. mortgage company over collection tactics.

(1) According to the story:

• the Hatchers allege representatives from Vanderbilt began calling "two to three times a day, Monday through Saturday."
• they singled out one representative who "threatened that the police would kick them out and padlock the door so that [they] would not be able to remove their belongings."
• other representatives threatened seizure of the Hatcher's personal belongings, and suggested they find "a better place to live so their kids would not be homeless."
• on more that one occasion, Tammy alleges a Vanderbilt representative called her a "liar" when she said a payment would be forthcoming from the portion of student loans she intended to use as living expenses.
• on at least two occasions, the Hatchers allege Vanderbilt informed their friends they were behind on their mortgage. The Hatchers say both the mother of one of their son's youth football teammates, and an in-law told them relayed to them a message from Vanderbilt about the need to make a payment.
• on a date not specified, Vanderbilt sent the Hatchers a letter saying they were willing to work out a plan to get them current on the mortgage. The agreement called for the Hatchers to make lump sum payments once their student loans were disbursed. Despite making three lump-sum payments of $1,830 as called for, the Hatchers allege Vanderbilt continued to inform third-parties about the delinquency in their mortgage, including a neighbor, and Tammy's mother and step-father after the January payment was made.

(2) According to their website, Mountain State Justice is a non-profit public interest law office dedicated to pursuing impact and significant litigation on behalf of low-income West Virginians, whose work currently focuses primarily on combating predatory lending and abusive debt collection techniques through individual and class action lawsuits, and who provide free legal services in their areas of practice to qualifying individuals.