Rushmore Loan Management Services debt collection $185K class action lawsuit settlement

Rushmore Loan Management Services agreed to pay $185,300 as part of a class action lawsuit settlement to resolve claims it violated telemarketing and debt-collection laws.

The settlement benefits Massachusetts residents who received two or more phone calls from Rushmore Loan Management Services within a seven-day period between March 30, 2017, and Oct. 19, 2021. According to the settlement website, there are 3,706 class members included in this definition.

Rushmore Loan Management Services is a mortgage servicer and originator that provides services and supports to borrowers. In 2020, Rushmore was named a Fannie Mae Servicer Total Achievement and Rewards (STAR) Performer in the General Servicing category.

Despite this accolade, consumers say they are displeased with Rushmore’s alleged illegal debt collection practices. A class action lawsuit against the mortgage servicer claims Rushmore Loan Management Services contacts borrowers more frequently than is allowed under Massachusetts law.

Massachusetts debt-collection laws prohibit debt collectors from contacting borrowers two or more times within a seven-day period. This includes all calls made to a debtor’s resident, cell phone or another phone number. The Massachusetts attorney general classifies these excessive calls as “unfair or deceptive act[s] or practice[s].”

Rushmore allegedly violates these regulations by contacting customers more than two times in a seven-day period.

The plaintiff in the case says she was repeatedly called by Rushmore in an attempt to collect on a debt that was over 30 days past due. Even when the plaintiff couldn’t pick up these excessive calls, Rushmore allegedly left messages identifying themselves and demanding she return the call.

Rushmore Loan Management Services has not admitted any wrongdoing but agreed to a $185,300 class action lawsuit settlement to resolve these allegations.

The settlement provides cash payments to class members.

Each class member who does not exclude themselves will receive an equal share of the settlement fund after deductions. Exact payments will vary depending on the number of participating class members and the amount deducted in administrative costs, attorneys’ fees and other awards.

If any funds remain in the settlement due to uncashed checks, these funds will be donated to a charitable organization approved by the court. No unclaimed funds will revert back to Rushmore Loan Management Services.

The deadline for exclusion and objection is Nov. 28, 2022.

The final approval hearing for the Rushmore Loan Management Services class action lawsuit settlement is scheduled for Jan. 26, 2023.

The final approval hearing for the Rushmore Loan Management Services class action lawsuit settlement is scheduled for Jan. 26, 2023.

The deadline to submit a claim form is Nov. 28, 2022

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