Caliber Home Loans Fights To Survive Class Action Suit Alleging Violations Of The Fair Debt Collection Practices Act
Caliber Home Loans fights for its life after it was named as the defendant in a 52-page lawsuit. The lawsuit alleges Caliber Home Loans violated the Fair Debt Collection Practices Act.
The plaintiff states his previous servicer accelerated his loan on March 6, 2010, and filed a foreclosure proceeding against him. The mortgage servicer later dismissed the foreclosure action.
Caliber Home Loans obtained the debt after it went into default. The mortgage servicer then sent the plaintiff a collection letter in July 2017 demanding payment and threatening legal action. The case argues the statute of limitations for such action had expired by 2017. Therefore, the debt was unenforceable and the defendant’s threat of litigation was deceptive.
The case states Caliber sent the plaintiff additional letters in September 2017. The letters failed to clearly state the man’s debt amount. The suit also argues that the defendant illegally threatened the homeowner with accruing interest and late fees. Caliber knew that the balance would never increase.
The complaint also states Caliber filed a foreclosure proceeding against the plaintiff. The homeowners claim Caliber made no attempt to recover the man’s debt by Caliber. The case argues that the defendant was aware of the prior foreclosure proceeding that had been dismissed.
The suit also states Caliber was aware of another lawsuit filed against a previous servicer of the man’s loan. The previous mortgage servicer attempted to collect on his time-barred debt.
The lawsuit also alleges unlawful debt collection voicemails Caliber left on the plaintiff’s phone.