Attorneys Andrea Bopp Stark and Christopher Keach filed an action last week on behalf of a home loan borrower against Wells Fargo Home Mortgage and the Bank of New York Mellon as Trustee for violations of the automatic stay and discharge injunction of the bankruptcy code (11 U.S.C. §362 and 11 U.S.C. §524). Other claims alleged include violation of the Maine and Federal Fair Debt Collection Practices Act (FDCPA) and the Maine Consumer Credit Code (MCCC). In sum, the borrower alleges the following in her Complaint:
She filed bankruptcy in 2010 to get a fresh start after her divorce and surrendered her marital home in the bankruptcy. In addition, the home was foreclosed on previous to her filing and she had moved out. Despite this, Wells Fargo sent monthly statements to the borrower seeking thousands of dollars in mortgage payments. Wells Fargo also sent notices that the borrower's account would be charged for force placed insurance on the property. Wells Fargo, through America's Servicing Company (ASC), sent such notices directly to the borrower almost every month for five years, even after our office sent multiple notices to ASC that we were representing her in a bankruptcy. The borrower received her bankruptcy discharge in June 2015. ASC continued to send monthly notices to the borrower regarding amounts alleged owed on the mortgage. The borrower alleges that after the foreclosure in 2010 and the running of redemption period, she was no longer responsible for the property or mortgage debt. After she filed for bankruptcy the automatic stay provided added protection from ASC’s collection efforts. Then, after her discharge, it was clear she was not personally liable for the mortgage debt. Yet ASC continue to try and collect on alleged monthly payments due and provide notices regarding insurance premiums charged to her account. ASC’s continued efforts to collect on monies not owed by the borrower for six years has caused her emotional distress including depression, fear of having to pay the money to get ASC to stop, anxiety, and a lack of enjoyment in activities she used to like.
Again, these are the allegations made in the complaint filed by the borrower. The case will now progress with litigation through the U.S. District Court, District of Maine, Docket No. 2:16-cv-00570-JDL.