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Your Mortgage and Potential Convenience Fees


Most people have ordered something online in their lifetime and have been charged convenience fees. These fees, while in most-cases are legal, can be aggravating and annoying for the consumer. Convenience fees, better known as pay by phone fees, online fees, processing fees, speedpay fees and extra charges are mainly charged by a merchant when a consumer orders something online while using a credit or debit card. If you purchase sports tickets online, you will be charged a certain fee that will be added on top of the ticket prices. This, however, is allowed by law, because you’ve agreed to pay them in a contract or terms and conditions.

The terms of many mortgage agreements, however, do not allow for the charging of “convenience,” or pay-by-phone fees. Despite this, homeowners have complained that their mortgage loan servicers are charging as much as $5.00 for online payments and up to $20.00 for over the phone payments. By adding on extra fees, these companies are violating the Fair Debt Collection Practices Act, the North Carolina Unfair Debt Collection Act and their own contractual agreement.

Our firm is prepared to handle cases like this very one. In 2019, Asa Edwards resolved a consumer protection lawsuit against a mortgage servicer for $125,000.00.  The mortgage servicer had inaccurately charged the client with various inappropriate fees and charges and refused to respond to the pleas from our client that their records were inaccurate. The matter involved claims under the Fair Credit Reporting Act and North Carolina Unfair Debt Collection Act.

Similarly, in 2017, Ed Maginnis, Asa Edwards, and Karl Gwaltney resolved a case for $99,000 against a mortgage servicer on behalf of a North Carolina husband and wife. The settlement was one day before the jury for the trial was to be selected. Our clients alleged that the mortgage servicer had submitted unlawful threats to foreclose on the property, had charged improper fees, and had otherwise violated our clients deed of trust.

If you or someone you know has been charged a convenience fee on your mortgage payment, or you believe that you have been in the past, we want to hear from you and discuss your individual situation. Feel free to give us a call at 919-526-0450 or email info@maginnislaw.com. Make sure you keep all documents and receipts regarding your mortgage and past mortgage payments to help assist us in evaluating your case.

Maginnis Law offers personal injury, employee rights, estate planning and business litigation attorneys as well. We offer free consultations relating to most of our other practice areas, but please call or email for details to confirm what we can do with your potential case.

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