AG Tong DOB Commissioner alerts homeowners of unauthorized bank account withdrawals
Attorney General Tong, DOB Commissioner Perez, alerts homeowners about unauthorized withdrawals from bank accounts by mortgage agent Mr Cooper
(Hartford, CT) – Attorney General William Tong and Banking Commissioner Jorge Perez are urging Connecticut homeowners whose mortgages are managed by Mr. Cooper, formerly known as Nationstar Mortgage, to check their bank accounts for unauthorized withdrawals. Errors of an electronic payment provider, ACI in the world, triggered the unauthorized withdrawals, which took place on Saturday April 24 and may have appeared on consumers’ financial accounts on Monday April 26.
More than 480,000 borrowers nationwide have been affected by the errors, including Connecticut consumers. In some cases, consumers’ bank accounts were debited for multiple mortgage payments. Unauthorized withdrawals have resulted in overdraft fees and other harm for some consumers.
“Connecticut residents who had many unauthorized mortgage payments deducted from their bank accounts may suffer financial harm, ” Said Attorney General Tong. “If your mortgage is managed by Mr. Cooper, please check your records. If you are a victim of these unauthorized withdrawals, contact the company immediately to begin the refund process. ”
“Any unauthorized withdrawal can have a damaging ripple effect on the finances of Connecticut consumers,” mentionned Commissioner Perez. “Therefore, it is of the utmost importance that all steps are taken to ensure that they never happen and if they do happen again, they are promptly corrected. We urge anyone who has an account with Mr. Cooper to review their financial accounts to ensure that they have not been affected by these transactions. “
Mr. Cooper, who is licensed as a mortgage manager by the Connecticut Banking Department, said the errors were likely corrected by Tuesday, April 27 with updates. The company has promised to correct any inaccurate charges. He also promised to reimburse consumers for overdraft fees and other damages resulting from unauthorized withdrawals.
Homeowners whose loans are managed by Mr. Cooper and who have been affected by unauthorized withdrawals should contact the business directly if they have any questions or concerns and to request reimbursement of the overdraft and other charges. Homeowners can request a refund by logging into their Mr. Cooper online account and following the instructions.
Additional information from Mr. Cooper regarding unauthorized withdrawals is available here.
Homeowners who are unable to resolve their issues caused by unauthorized withdrawals or who are unable to obtain a refund can contact the Connecticut Department of Banking or the Connecticut Attorney General’s office.
In December 2020, Attorney General Tong joined 50 other attorneys general and other federal and state agencies to settle with Nationstar Mortgage, which does business as “Mr. Cooper ”for $ 86.3 million. Nationstar is the country’s fourth largest mortgage manager.
The settlement resolved allegations that Nationstar violated consumer protection laws while serving mortgages. The settlement provided for compensation for a variety of injuries identified during the investigation. Thousands of borrowers had problems when their loans were transferred to Nationstar, which led to foreclosure under certain circumstances.
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