Mr. Cooper Group Inc., a mortgage servicer, faces multiple lawsuits over its handling of customer data and its mortgage servicing practices.
Cybersecurity Breach Lawsuits
In October 2023, Mr. Cooper disclosed that it had experienced a data breach in which the personal information of millions of its customers was potentially exposed. The breach reportedly affected approximately 3.9 million customers and potentially exposed their names, Social Security numbers, addresses, phone numbers, and dates of birth.
Following the disclosure of the breach, at least four class action lawsuits were filed against Mr. Cooper alleging that the company failed to take adequate measures to protect its customers’ data. The lawsuits allege that Mr. Cooper’s negligence led to the breach and that the company’s failure to adequately notify customers of the breach caused them harm.
Pay-to-Pay Fee Lawsuits
Mr. Cooper has also been the subject of multiple lawsuits alleging that it charged unlawful pay-to-pay fees to its customers. Pay-to-pay fees are fees that mortgage servicers charge customers for making payments over the phone or online. Mr. Cooper allegedly charged its customers fees of up to $14 for using its interactive voice response system and $19 for speaking directly with a representative.
In 2023, Mr. Cooper reached a $3.6 million settlement with a class of customers who alleged that they were unlawfully charged pay-to-pay fees. The settlement did not resolve all of the pay-to-pay fee lawsuits against Mr. Cooper, however.
Ongoing Litigation
The lawsuits against Mr. Cooper are ongoing and it is too early to say how they will ultimately be resolved. However, the lawsuits have already raised important questions about the company’s data security practices and its mortgage servicing practices.
If you are a Mr. Cooper customer and have been affected by the data breach or the pay-to-pay fees, you should contact an attorney to discuss your legal options.
