What do you call a bank that tries to foreclose on an 85 year old woman who missed the LAST payment of $432 on her 30 year mortgage because she was hospitalized?
PHILADELPHIA – An elderly New Jersey woman billed $5,800 after missing the final payment on her 30-year mortgage can pursue her lawsuit against the debt collectors. Lawyers for 85-year-old Dorothy Rhue Allen say the fees charged by two banks and a law firm violate consumer-protection laws.
The suit says LaSalle Bank and Cenlar Federal Savings Bank started foreclosure proceedings in 2007 after the hospitalized Allen missed the last $432 payment on her Deptford, N.J., home. The banks advised her lawyers she could pay $5,800 to avoid foreclosure. But her lawyers instead sued over the fees, and the foreclosure action was dropped. A U.S. appeals court this week says Allen can pursue her case, reversing a federal judge who threw it out. A lawyer for the Trenton, N.J.-based banks declined to comment.