Judge Allows Class Action Lawsuit Against Credit Suisse Mortgage Unit To Proceed

Lender is accused of misleading homeowners over fees for reinstating mortgages

U.S. District Judge Robert N. Scola, Jr. is allowing a class-action lawsuit to proceed against Credit Suisse AG’s mortgage unit for misleading homeowners about the amount of fees owed to reinstate mortgages going through foreclosures.

The lead plaintiff is Kimberly Bacardi, who said a reinstatement letter sent to her by Select Portfolio Servicing Inc., a unit of Credit Suisse, failed to properly disclose and list all the fees and costs included in the reinstatement amount.

Bacardi and other members of the class are being represented by James L. Kauffman of Bailey Glasser’s Washington, D.C., office and attorneys from Consumer Law Organization and Jacobs Keeley.

The lawsuit alleges that SPS’s actions violate the Fair Debt Collection Practices Act. Judge Scola denied SPS’s motion to dismiss.

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