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Should You Bring a Mortgage Lender Lawsuit as an Individual or Class Action?

Posted by Brian K. Herrington | Aug 21, 2017 | 0 Comments

Should you bring a mortgage lender lawsuit as an individual or class action

The past decade has shown us that, all too often, mortgage lenders act in ways that are not only financially damaging to the customers who put their faith in the lenders to assist them, but also illegal under state and/or federal lending and housing laws. Whether it be an improperly conducted foreclosure action that illegally takes a family's home from underneath them, hidden and/or inflated charges and fees for services the borrower either did not want or did not receive the full value of, or anything in between, a homeowner financially injured by a mortgage lender can feel confused and unsure of how to proceed against the lender for the injuries they have suffered.

Mortgage lenders, of course, have teams of lawyers on standby – often funded in part by the ill-gotten profits that those lenders make off the unfair treatment of their own customers – making the thought of pursuing legal action feel hopeless. But experienced attorneys are out there who have successfully taken on financial giants and won for mistreated consumers. One question at the outset that you will need to work out with your lawyer, however, is when it is appropriate to bring an individual action against a mortgage lender, and when it is more beneficial to bring a class action.  

When a Mortgage Lender Class Action Makes Sense

Every situation is different, but, by and large, class actions against mortgage lenders make sense when numerous customers of a mortgage lender have been injured by a similar type of practice in similar manners and have suffered similar types of money damages. In any class action, a state or federal court will want to see that these aspects of numerosity among the plaintiffs (usually that at least 20-30 plaintiffs have been injured by the defendant's practices) as well as commonality among the actions taken by the defendant and the injuries suffered.

Class actions are also particularly suited to situations where a plaintiff has suffered a financial injury that is significant but not large enough to make bringing an individual action worthwhile. Thus, when mortgage lenders assess improper fees against their lending customers that may be in the hundreds of dollars, a class action is probably a better option.

But even large financial injuries can be suitable for a class action, as one of the primary benefits of a class action is that similarly situated plaintiffs can pool their leverage against even the largest of financial institutions to win justice.  

Bringing an Individual Mortgage Lender Class Action

An individual mortgage lender action is thus proper when the above requirements of numerosity and commonality for a class action may not be present. If you were injured by the particular actions of a lending officer or bank in ways not experienced by other customers – or if your injuries suffered by a common practice are unique to you in being significantly large – an individual action may be best. This is especially in the case of a pending or recent foreclosure where achieving specific relief to protect your home is critical and time-sensitive.

An experienced class action attorney can provide customized guidance through a free consultation regarding whether your particular circumstances are best suited for a class action or individual action against your mortgage lender.

Contact Herrington Law About Your Mortgage Lender Issue

Herrington Law in Jackson, Mississippi has become a class action leader because of its constant focus on what matters most: obtaining justice for individual plaintiffs who have been wronged by defendants. We have built strong relationships over the decades with co-counsel across the country, all in pursuit of providing outstanding outcomes for the people who matter most: our clients. Contact us to set up a free consultation today regarding filing or joining an unsafe food class action lawsuit.

About the Author

Brian K. Herrington

A proven leader in the legal community, dedicated to obtaining justice for his clients with the highest level of client service. For more than 20 years, Brian Herrington has successfully represented consumers, small-business plaintiffs, attorneys general, and banks in complex litigation and comp...


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