The Money Store and HomEq set to pay $54.8 Million for unnecessary late fees

A Manhattan federal jury reached a decision on December 19th, 2014, on a case that has been a longstanding suit by borrowers whose mortgages were owned or serviced by HomEq. Plaintiff Joseph Mazzei accused The Money Store and HomeEq of charging unnecessary late fees after the lenders had accelerated homeowner's mortgage loans. They also claimed the late fees were prohibited under the terms of the loan agreement and voided state laws.

The plaintiff, and other homeowners, hope that this case will shred light on banks trying to gain any advantage on their borrowers and force all banks to become transparent in all aspects of their company procedures. Since 2008, the constant struggle for homeowners to just trying to stay in their home is hard enough. Some homeowners are living check to check, working two jobs and spending less and less time in the actual home that they are paying for. Add a bank that tries to squeeze their borrowers for every extra penny and you get almost every plaintiff in this case.

The trial lasted 10 days in the Southern District of New York.