Mortgage servicing giant Nationstar (which also operates under the name Mr. Cooper) made multiple unauthorized withdrawals from customer accounts on the night of April 24th, 2021. The North Carolina Attorney General’s Office said that the glitch impacted more than 14,000 North Carolina residents.
For some customers, temporary courtesy credits were visible later that same day. Full refunds did not appear until April 27th, 2021. Nevertheless, the charges were significant enough to warrant thousands of consumer complaints and panicked customer service calls. Some borrowers saw as much as $50,000 in unauthorized transactions to Nationstar in bank statements. Consumers complained they were without funds for other necessities over the weekend.
Nationstar cited their electronic payment vendor, ACI Worldwide, for the error. The vendor independently issued the wrongful mortgage payments drafts during a system test. However, consumer protection statutes can hold Nationstar accountable. One such law, the federal Electronic Fund Transfers Act (EFTA), protects consumers using electronic payments from unauthorized charges. The EFTA extends to erroneous charges.
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Nationstar was involved in a former Maginnis Howard suit that settled in December of 2020.