Maryland Mortgage Borrowers Cry Foul Over Allegedly Unauthorized Inspection Fees |
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A class action has been filed in Maryland against Ocwen Federal Bank FSB on behalf of all mortgage borrowers who, since October 23, 1991, have been charged allegedly unlawful inspection fees by Ocwen. Consumers allege that Ocwen has violated state consumer debt collection and commercial laws and has breached its contract with consumers. Consumers are seeking compensatory, statutory and punitive damages, declaratory relief and a permanent injunction and the disgorgement of funds obtained through unjust enrichment.
This action is the result of what Maryland consumers claim is the charging of unlawful inspection fees on mortgage loans held and serviced by Ocwen Federal Bank. According to consumers, these fees are not permitted by Maryland law, nor are they a part of the mortgage contract between Ocwen and consumers. These fees were collected by Ocwen as part of loan payments made by consumers. The class members allege that the collection of these fees resulted in Ocwen's unjust enrichment. The consumers also allege that Ocwen may have been charging other prohibited fees, but the complaint does not specify these fees.
This case was originally filed in state court and was removed to federal court by Ocwen. It is expected that the consumers will amend the action to include violations of federal laws as well.
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