Rushmore Loan Management Services has agreed to pay $185,300 in a class action settlement to resolve allegations that it violated telemarketing and debt collection laws.
The settlement benefits Massachusetts residents who received two or more phone calls from Rushmore Loan Management Services within seven days between March 30, 2017 and October 19, 2021. According to the settlement’s website, 3,706 class members are included in this definition.
Rushmore Loan Management Services is a mortgage loan servicer and originator that provides services and support to borrowers. In 2020, Rushmore was named a Fannie Mae Servicer Total Achievement and Rewards (STAR) Performer in the General Servicing category.
Despite this distinction, consumers say they are unhappy with Rushmore’s alleged illegal debt collection practices. A class action lawsuit against the mortgage manager claims that Rushmore Loan Management Services is contacting borrowers more frequently than Massachusetts law allows.
Massachusetts debt collection laws prohibit debt collectors from contacting borrowers two or more times within a seven-day period. This includes all calls made to residents, to a debtor’s cell phone or other phone number. Massachusetts Attorney General Classifies Excessive Calling as ‘Unfair or Deceptive Act[s] or practice[s].”
Rushmore allegedly violated these regulations by contacting customers more than twice in a seven-day period.
The plaintiff in the case says she was repeatedly called by Rushmore to try to collect on a debt that was over 30 days past due. Even when the complainant was unable to respond to these excessive calls, Rushmore allegedly left messages identifying herself and asking her to call back.
Rushmore Loan Management Services has not admitted any wrongdoing, but has agreed to a $185,300 class action settlement to resolve these allegations.
The settlement provides for cash payments to class members.
Each class member who does not opt out will receive an equal share of the settlement fund after deductions. Exact payouts will vary depending on the number of participating class members and the amount deducted from administrative costs, attorney’s fees and other rewards.
If there are funds left in the settlement due to uncashed checks, those funds will be donated to a court-approved charity. No unclaimed funds will revert to Rushmore Loan Management Services.
The exclusion and objection deadline is November 28, 2022.
The final approval hearing for the Rushmore Loan Management Services class action settlement is scheduled for January 26, 2023.
The final approval hearing for the Rushmore Loan Management Services debt collection class action settlement is scheduled for January 26, 2023.
The deadline to submit a claim form is November 28, 2022