Statebridge Debt Collection Class Action Settlement

Consumers who had a junior-lien mortgage loan their primary residence secured and Statebridge Co. serviced that was more than 30 days past due as of May 14, 2025, may be eligible to receive approximately $172 from a class action settlement.

Star214 LLC and Statebridge Co. LLC agreed to settle a class action lawsuit alleging they violated the Fair Debt Collection Practices Act. The lawsuit claimed the companies misled borrowers into thinking they owed interest and fees on second mortgage loans without sending monthly statements and misrepresented outstanding balances in borrower communications.

Who are the class members?

Class members are individuals who meet all of the following criteria:

• They are natural persons within the United States or its territories.
• They are obligors of a junior-lien mortgage loan their primary residence secured.
• They had a loan that, as of May 14, 2025, Statebridge actively serviced.
• The loan was more than 30 days past due at the time Statebridge began to service it.
• Statebridge sent them correspondence between Nov. 2, 2023, and May 14, 2025, reflecting an amount due that included late fees, default-related fees or interest assessed for periods when Statebridge charged the loan off and did not send monthly mortgage statements.

There are several subclasses that may receive additional benefits:

• Owner entity performing loan settlement subclass: Borrowers whose loans an owner entity owned that were less than 30 days past due as of May 14, 2025, or who made a full monthly payment in at least four of the six months preceding May 14, 2025, and received correspondence as described above
• Owner entity defaulted loan modification settlement subclass: Borrowers whose loans an owner entity owned, are not part of the performing loan settlement subclass and who received correspondence as described above
• CAMG additional remediation subclass: Borrowers whose loans a CAMG entity owned and previously charged off that Statebridge actively serviced with specific statement and interest assessment history prior to Oct. 19, 2017

How much can class members get?

The settlement provides a $150,000 fund for statutory damages. The settlement administrator will distribute it equally among eligible class members who do not opt out. The estimated payment for each class member is approximately $172.01. The final amount may vary depending on the total number of class members who remain in the class.

Subclass-specific benefits:

• Owner entity performing loan settlement subclass: Automatic removal of all interest assessed for time periods when Statebridge did not send monthly mortgage statements to the extent such amounts are still reflected as due and owing on the loan
• Owner entity defaulted loan modification settlement subclass: Opportunity to accept a discounted payoff or loan modification that removes all interest assessed for time periods when Statebridge did not send monthly statements if the class member agrees to the modification terms
• CAMG additional remediation subclass: Removal of all interest assessed for certain periods prior to Oct. 19, 2017, and additional remediation if Statebridge charged off the loan, including removal of one-third of all interest accrued before Oct. 19, 2017

No action needed to receive compensation

Class members do not need to file a claim to receive compensation. The settlement administrator will automatically send payments to eligible class members who do not opt out. There is no online claim form or downloadable PDF claim form.

Settlement fund breakdown

• Settlement administration costs: Paid separately by owner entities
• Attorneys’ fees and costs: Up to $900,000 (paid separately by owner entities)
• Service awards to class representatives: Up to $7,500 each ($15,000 total) (paid separately by owner entities)
• Payments to eligible class members: $150,000 statutory damages fund

Important dates

• Deadline to opt out: April 7, 2026
• Fairness hearing: April 17, 2026

When is the Brown et al. v. Star214 payout date?

The settlement administrator will distribute payments and benefits approximately 30 days after the court resolves any appeals and grants final approval to the settlement.

Why is there a class action settlement?

The class action lawsuit alleged Star214 LLC and Statebridge Co. LLC violated the FDCPA by representing to borrowers that they owed interest and fees for periods when the companies did not send monthly statements and misrepresenting outstanding balances.

The defendants denied any wrongdoing but agreed to settle to avoid the risks and costs of further litigation.

Sources

1. Settlement agreement
2. Settlement FAQ
3. Key dates