Plantiffs Overcharged On Mortgage Debt Win Settlement Vs. Select Portfolio Servicing Inc.

he law firm Marcus & Zelman LLC has reached final approval for a class action settlement with Select Portfolio Servicing Inc., (Gaffney v. Select Portfolio Servicing, Inc.) a company that serviced the plaintiffs’ mortgage loans on behalf of a non-party lender. Now, other consumers who have been overcharged on their mortgage debts after foreclosure may be entitled to similar relief. 

After the plaintiff’s bank had foreclosed on her home, Select Portfolio Services (her bank's collection agency) attempted to collect the remaining mortgage-related debt, including an amount of interest that was higher than they were entitled to under New Jersey Law, according to the lawsuit. The plaintiff then brought claims against Select Portfolio Services for violating the Fair Debt Collection Practices Act (FDPA) and her rights as a consumer. 

Marcus & Zelman delivered a settlement over $200,000 for the class of roughly 1,500 individuals affected, representing a high recovery in this type of FDPA of class action. “This is another great result for one of our clients,” said Ari Marcus, managing partner at Marcus Zelman. “Consumer protections are never something to be overlooked, and we are pleased to have helped bring someone in such a vulnerable situation the compensation they deserved.”