Carrington Mortgage pays $18 million to end convenience fee suit

By Gina Kim (May 26, 2022, 4:45 p.m. EDT) – Carrington Mortgage Services has agreed to pay $18 million to resolve claims from borrowers who alleged the lender illegally charged convenience fees of $5 to $20 for loan payments made online or over the phone, according to a motion for preliminary settlement approval filed Wednesday in federal court in Maryland.

In a 40-page motion filed Wednesday, plaintiff Ashly Alexander and six other borrowers urged the court to consider the settlement fair and adequate, noting that the $18,181,898 settlement fund represents about 35% of the total costs. convenience that Carrington charged customers from January 2016 through December 2021. As part of…

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