PHH Mortgage $1.5M Debt Collection Class Action Settlement

Individuals who received a notice from PHH Mortgage Corp. regarding delinquent monthly mortgage payments on or after Jan. 14, 2021, may be qualify to receive a cash payment from a class action settlement. The settlement class includes nearly 96,000 current and former homeowners.

PHH Mortgage Corp. agreed to pay $1.5 million to settle a class action lawsuit alleging it sent mortgage borrowers default notices that violated federal and state debt collection laws. The plaintiffs claimed these notices included misleading threats of immediate acceleration and foreclosure even though PHH could not legally take such action until the loans were at least 120 days delinquent.

Who is eligible for a debt collection settlement payout?

Class members must meet the criteria for one or more of the following groups:

• FDCPA class:
• They are former or current borrowers on a residential mortgage loan secured by property in the United States.
• PHH serviced the mortgage loan or PHH acquired servicing rights when the loan was 30 or more days delinquent.
• They received one or more notices of default from PHH between Dec. 18, 2022, and Dec. 15, 2025.

• California class:
• They are former or current borrowers on a residential mortgage loan secured by property in California.
• PHH serviced the mortgage loan.
• They received one or more notices of default from PHH between Dec. 18, 2022, and Dec. 15, 2025.

• North Carolina class:
• They are former or current borrowers on a residential mortgage loan secured by property in North Carolina.
• PHH serviced the mortgage loan.
• They received one or more notices of default from PHH between Jan. 14, 2021, and Dec. 15, 2025.

How much will the PHH settlement payment be?

Pro rata cash payment: Eligible class members will receive a pro rata cash payment from the net settlement fund for each class group they qualify for. The settlement administrator will determine the final payment amount by the total number of eligible loans in each group.

The settlement divides the $1,500,000 fund equally into three separate funds of $500,000 each for the FDCPA, California and North Carolina classes.

No claim form required

Class members do not need to complete a claim form to receive a settlement payment. They can submit an electronic payment request online.

Class members whose mailing address has changed since Jan. 14, 2021 should submit an address update request online or by mail or email.

Settlement administrator's mailing address: PHH Settlement Administrator, PO Box 1468, Baton Rouge, LA 70821

Settlement administrator's email address: info@WilliamsPHHSettlement.com

Payout options

• Paper check mailed to the address on file and payable jointly to all borrowers on the loan
• Electronic payment (if requested through the settlement website):
• PayPal
• Venmo
• Zelle
• ACH
• Virtual Mastercard

Settlement fund breakdown

The $1,500,000 settlement fund will include:

• Attorneys' fees: Up to $500,000
• Attorneys' expenses: To be presented to the court for approval at a later date
• Service awards to class representatives: $5,000 each ($10,000 total)
• Payments to eligible class members: Remaining settlement funds from each group

PHH will pay up to $200,000 of settlement administration costs separately from the fund.

Important dates

• Exclusion deadline: May 5, 2026
• Fairness hearing: June 9, 2026

When is the PHH Mortgage settlement payout date?

The settlement administrator will issue payments approximately 105 days after the court grants final approval of the settlement.

Why did this class action settlement happen?

The class action lawsuit alleged PHH Mortgage Corp. sent notices of default to borrowers that included false threats of immediate acceleration and foreclosure if they did not cure the default by the stated deadline. The plaintiffs claimed these notices violated the Fair Debt Collection Practices Act, California’s Rosenthal Act, the North Carolina Debt Collection Act and the North Carolina Collection Agency Act.

PHH denied the allegations but agreed to settle to avoid the risk and expense of continued litigation.

Sources

1. Class notice
2. Settlement website
3. Settlement agreement