Frequently Asked Questions

  1. Why was there a notice?

    The Court authorized the Class Notice because you had a right to know about the Settlement of this Action and about all of your options before the Court decided to give final approval to the Settlement. The Class Notice explains the Action, the Settlement, and your legal rights. Judge Richard D. Bennett, of the U.S. District Court for the District of Maryland, oversaw this case. The case is known as Alexander v. Carrington, Case No. 1:20-cv-2369-RDB (D. Md.). The people who sued are called the “Plaintiffs.” The Defendant is Carrington Mortgage Services, LLC.

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  2. Why was this a class action and who is involved?

    The Action claims that Carrington charged borrowers fees to make mortgage payments online or over the phone, including through the use of the telephonic automated “IVR” (interactive voice response) system (“Convenience Fees”). The Action asserts that Carrington’s practice of charging such fees, among other things, violated the federal Fair Debt Collection Practices Act and state debt collection laws including the Maryland Consumer Debt Collection Act, the Maryland Consumer Protection Act, the Texas Finance Code, the California Rosenthal Fair Debt Practices Act, the California Unfair Competition Law, the Florida Consumer Collection Practices Act, and the Florida Deceptive and Unfair Trade Practices Act, and breached the terms of the borrowers’ loan agreements. Carrington denies the allegations asserted in the Action.

    The Amended Complaint in this Action is available here and contains all of the allegations and claims asserted against Carrington.

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  3. Why was this a class action?

    In a class action, one or more people, called Class Representatives (in this case, mortgage borrowers whose mortgages were serviced by Carrington and who paid Convenience Fees), sue on behalf of people who have similar claims. All of the people who have claims similar to the Class Representatives are members of the Settlement Class, except for those who exclude themselves from the Class.

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  4. Who was a Class Member?

    The Court determined that every person who fit the following description was a Class Member:

    All persons who paid a fee to Carrington for making a mortgage loan payment by telephone, IVR, or via the internet, between January 1, 2016, and December 31, 2021 ("Convenience Fees") who fall into one or more of the following groups:

    1. were borrowers on residential mortgage loans on properties located in California, Texas, New York, Maryland, or Florida;
    2. were borrowers on residential mortgage loans on properties in the United States to which Carrington acquired servicing rights when such loans were 30 days or more delinquent on loan payment obligations; or
    3. were borrowers on residential mortgage loans on properties located in the United States insured by the Federal Housing Administration.
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  5. Why was there a settlement?

    Both sides agreed to the Settlement. By agreeing to the Settlement, the Parties avoid the costs and uncertainty of a trial, and Settlement Class Members receive the benefits described in the Class Notice. The Class Representatives and their attorneys think the Settlement was best for everyone who is affected.

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  6. When would I receive my benefits?

    The Court approved the Alexander v Carrington Mortgage Services Settlement on November 10, 2022. Payments are expected to be issued by the end of the year.

    The complete terms of the Settlement are set forth in a formal Settlement Agreement (the “Agreement”), which is both on file with the Court and available here. This website is only a summary of the Settlement, and in case of any conflict between this website and the Agreement, the terms of the Agreement will control.

    Carrington has agreed to create an $18,181,898.65 Common Fund. All Administrative Costs, any Court-awarded attorneys’ fees and expenses to Class Counsel, and any Service Awards to the Class Representatives will be paid out of the Gross Settlement Fund first. The remaining balance of the Settlement Fund (the “Net Settlement Fund”) will be distributed among the Class Representatives and all Class Members who are not excluded from the Class, as set forth below (the “Settlement Class Members”). If the Court awards all Administrative Costs, attorneys’ fees and expenses, and Service Awards requested by the Parties, the Net Settlement Fund will be approximately $11,636,265.77.

    Also, as part of the Settlement, Carrington has agreed to stop charging fees for payments made online or by telephone, including through the use of the telephonic automated “IVR” (interactive voice response) system for three years.

    Allocations of the Net Settlement Fund will be calculated on a borrower-by-borrower basis, such that each Settlement Class Member who paid at least one Convenience Fee will receive a minimum payment of $5 and the remaining funds will be distributed on a pro rata basis based on the amount of Convenience Fees each Settlement Class Member paid during the Class Period. Settlement Class Members who receive a Settlement Payment are solely responsible for distributing or allocating their payment between or among all co-account holders. By way of illustration, if you are a borrower on a loan that paid one percent of the total Convenience Fees collected by Carrington during the Class Period, you will be allocated one percent of the Net Settlement Fund.

    Attorneys’ Fees and Expenses, and Service Award.

    Class Counsel will ask the Court to award attorneys’ fees in an amount not to exceed forty percent of the Settlement Fund, or $6,060,632.88, plus litigation costs and expenses. Class Counsel will also request Court approval of Service Awards to the Class Representatives in the amount of $5,000 each. Class Counsel will file that request, along with all supporting documents, at least 21 days prior to the deadline to opt out from or object to the Settlement. The Fee and Service Award Application and all supporting papers will be available for your review here when filed. The Court will determine the appropriate amount of the attorneys’ fees and awards to be paid. The Settlement is not conditioned upon approval of any of the attorneys’ fees, costs, or Service Award amounts. You are not required to make any payments to Class Counsel in this action.

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  7. How could I get the relief?

    As long as you did not exclude yourself from the Settlement, you will automatically receive cash benefits from the Settlement, and you do not need to take further action.

    Payments will be made by check mailed to Settlement Class Members, or, at the Settlement Class Member’s election, by a digital method. Checks will be valid for 90 days. Settlement Class Members may request that the Settlement Administrator reissue a check for one additional 90-day period for good cause shown. If there is any amount in the Settlement Fund remaining following the distribution of checks to Settlement Class Members as a result of checks being returned undeliverable or not cashed within 90 days, those funds will be distributed on a pro rata basis to Settlement Class Members who cashed their checks. Within 180 days after the Settlement Administrator mails the first Settlement Payments, the Settlement Administrator will decide whether residual funds should be distributed to the Settlement Class Members through a secondary distribution. If the amount of the remaining funds is so minimal that a secondary distribution would be impracticable or infeasible, then, subject to the Court’s approval, the remaining funds shall be distributed to NeighborWorks America and the Maryland Consumer Rights Coalition, a 501(c)(3) charitable organization that works with nonprofits around the country on housing issues.

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  8. When will I get the relief?

    The Court approved the Alexander v Carrington Mortgage Services Settlement on November 10, 2022. Payments are expected to be issued by the end of the year.

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  9. Who represents me?

    The Court has appointed Hassan A. Zavareei and Kristen G. Simplicio of Tycko & Zavareei LLP, James L. Kauffman of Bailey & Glasser LLP, and Phillip Robinson of Consumer Law Center, LLC to represent you and other Class Members in this Action and for purposes of this Settlement, and for no other purpose. These attorneys are called “Class Counsel.” You will not be charged for these lawyers. If you wanted to be represented by your own lawyer in this case, you may have hired one at your own expense.

    You may contact Class Counsel at:

    Class Counsel
    James Kauffman
    Bailey & Glasser LLP
    1055 Thomas Jefferson Street NW
    Suite 540
    Washington, DC 20007
    Hassan Zavareei
    Kristen G. Simplicio
    Tycko & Zavareei LLP
    1828 L Street NW
    Suite 1000
    Washington, DC 20036
    Phillip Robinson
    Consumer Law Center, LLC
    10125 Colesville Rd
    Suite 378
    Silver Spring, MD 20901
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  10. How will the lawyers be paid?

    Class Counsel will ask the Court to award attorneys’ fees in an amount not to exceed forty percent of the Settlement Fund, or $6,060,632.88, plus litigation costs and expenses. Class Counsel will also request Court approval of Service Awards to the Class Representatives in the amount of $5,000 each. Class Counsel will file that request, along with all supporting documents, at least 21 days prior to the deadline to opt out from or object to the Settlement. The Fee and Service Award Application and all supporting papers will be available for your review here when filed. The Court will determine the appropriate amount of the attorneys’ fees and awards to be paid. The Settlement is not conditioned upon approval of any of the attorneys’ fees, costs, or Service Award amounts.

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  11. How could I have excluded myself from the Settlement?

    The deadline to exclude yourself from the Settlement expired on October 19, 2022.

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  12. If I did not exclude myself, can I sue Carrington for the same thing later?

    No. Unless you excluded yourself, you gave up the right to sue Carrington for the claims the Settlement resolves. You must have excluded yourself from the Settlement Class in order to try to pursue your own lawsuit.

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  13. If I excluded myself, will I receive a payment?

    No. You will not receive a payment if you excluded yourself from the Settlement.

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  14. How could I have told the Court that I don’t like the Settlement?

    The deadline to Object to the Settlement expired on October 19, 2022.

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  15. What did I agree to by remaining in the Class in this case?

    If you, or someone acting on your behalf, are currently litigating claims against Carrington or other released parties that are the same as or similar to those addressed here, you are barred from pursuing the claims released by the Settlement unless you validly opted out, as described above. Under the terms of the release, you are not able to sue for any claim relating to Convenience Fees for mortgage payments made over the internet and/or by phone, including those made using the telephonic automated “IVR” (interactive voice response) system, between January 1, 2016, and December 31, 2021.

    The full terms of the release, which bind all Settlement Class Members as to certain claims against Carrington and certain affiliates and related entities (“Released Parties”), are set forth in the Settlement Agreement, which is both on file with the Court and available here. Unless you excluded yourself, you will be a Settlement Class Member, and that means any claims you have regarding Convenience Fees you paid to Carrington are fully and completely resolved, and that you cannot sue, continue to sue, or be part of any other lawsuit against Carrington about Carrington’s collection of Convenience Fees. It also means that the Court’s Orders approving the Settlement and the judgment in this case apply to you and legally bind you.

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  16. What happens next?

    The Court approved the Alexander v Carrington Mortgage Services Settlement on November 10, 2022. Payments are expected to be issued by the end of the year.

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  17. Is more information available?

    The Class Notice is only a summary of the Settlement and the Agreement. More details can be found in the Settlement Agreement. You can obtain a copy of the Settlement Agreement, and additional court documents related to the Settlement, on the Important Documents page. If you have other questions regarding the Settlement, you may contact the Settlement Administrator at:

    Mortgage Service Fee Settlement Administrator
    P.O. Box 5564
    Portland, OR 97228-5564
    phoneIcon 1-855-654-0867

    You may also contact Class Counsel at:

    James Kauffman
    Bailey & Glasser LLP
    1055 Thomas Jefferson Street NW
    Suite 540
    Washington, DC 20007
    emailIcon jkauffman@baileyglasser.com

    Hassan Zavareei and Kristen Simplicio
    Tycko & Zavareei LLP
    1828 L Street NW
    Suite 1000
    Washington, DC 20036
    emailIcon hzavareei@tzlegal.com
    emailIcon ksimplicio@tzlegal.com

    You may also review the Court’s file during regular court hours at:

    United States District Court for the District of Maryland
    101 West Lombard Street
    Baltimore, MD 94102

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