11th Circ. Finds Mortgage Servicer Liable for False Bill Notice

By Nate Beck (May 25, 2022, 6:33 PM EDT) — The Eleventh Circuit ruled Wednesday that a mortgage servicer could be held liable for sending out inaccurate monthly statements, in a matter of first impression that found the statements count as debt collection activity.

In a split decision, the appeals court found that required monthly mortgage statements sent by servicer Select Portfolio Servicing should be subject to the federal Fair Debt Collection Practices Act and the Florida Consumer Collection Practices Act, which each prohibit debt collectors from using false, deceptive or misleading statements to obtain payment.

Florida homeowner Constance Daniels sued Portfolio in 2018, claiming the company had sent monthly notices…

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