Consumers Allege Deceptive and Unfair Debt Collection Practices by Selene Finance

Falling behind on one's mortgage can be nerve-wracking. After just one missed payment, the mortgagor can begin making phone calls and sending letters demanding. In a lawsuit filed in Florida's Nineteenth Judicial Circuit, mortgagees Sally Argona, Clarissa Cruz, and others allege their finance company, Selene Finance, LP, took these efforts too far.

Argona and the other prospective class members all had mortgages that were serviced by Selene Finance. Many of the loans were in default or delinquent when Selene began servicing them while others became delinquent sometime after Selena Finance acquired them.

The complaint alleges that once a borrower became 45 days delinquent, Selene sent a "Final Letter' demanding that the borrower pay the full amount of arrears within 35 days of the Final Letter, or else Selene could accelerate the loan and demand the full amount of the note or initiate foreclosure proceedings. 

The problem is, according to the lawsuit, that Selene's internal practice would be to abstain from taking any of the threatened actions until the note was at least 120 days delinquent. This practice, according to the plaintiffs, violated the Fair Debt Collection Practices Act, 15 U.S.C. § 1692, and the Florida Consumer Collection Practices Act, § 559.72(7). These statutes prohibit "false, deceptive, or misleading representations" and "conduct which can reasonably be expected to abuse or harass the debtor."

The lawsuit also alleges Selene made representation it knew to be "untrue or it had a reckless disregard for whether they were true."

The plaintiffs seek actual and statutory damages, reasonable attorneys' fees and costs, and punitive damages.