Robbie Hargett May 20, 2016, 2:55pm


NEWARK, N.J. (Legal Newsline) - Two women are suing a residential mortgage loan servicer, an insurance company and a privately held financial services company, alleging the defendants unjustly profit from borrowers.

Barbra Bowles of New Jersey and Latasha Jackson of Mississippi, individually and for all others similarly situated, filed a class action lawsuit May 12 in U.S. District Court for the District of New Jersey against Fay Servicing LLC, American Modern Home Insurance Company, and Southwest Business Corporation, alleging breach of contract, breach of good faith and fair dealing, violations of the New Jersey Consumer Fraud Act, tortious interference with a business relationship, unjust enrichment, violations of the Truth in Lending Act, and violations of the Racketeer Influenced and Corrupt Organizations Act.

The suit alleges the defendants engaged in a pattern of unlawful profiteering and self-dealing in their purchase and placement of force-placed insurance coverage across the country. In exchange for providing American Modern and Southwest with the exclusive right to monitor the entire Fay loan portfolio and force-place their own insurance coverage, the lawsuit says, American provided Fay with various kickbacks disguised as legal compensation. 

The complaint states Fay homeowners bear the cost of these kickbacks because the defendants do not pass rebates on to the borrower.

Bowles, Jackson and others in the class seek a jury trial, compensatory and actual damages, interests, treble damages, injunctive and declaratory relief, attorney fees and costs. They are represented by attorney attorneys Roosevelt N. Nesmith of the Law Office of Roosevelt N. Nesmith in Montclair, New Jersey, Catherine E. Anderson of Giskan Solotaroff & Anderson in New York, Aaron S. Podhurst of Podhurst Orseck in Miami, Florida, Adam M. Moskowitz, Thomas A. Tucker Ronzetti, Rachel Sullivan and Robert J. Neary of Kozyak Tropin & Throckmorton in Coral Gables, Florida, Lance A. Harke, Sarah Engel and Howard M. Bushman of Harke Clasby & Bushman in Miami Shores, Florida; and Jeffrey W. Gutchess and Daniel Tropin of AXS Law Group in Miami, Florida.

U.S. District Court for the District of New Jersey Case number 2:16-CV-02714-CCC-JBC

Want to get notified whenever we write about U.S. District Court for the District of New Jersey ?
Next time we write about U.S. District Court for the District of New Jersey, we'll email you a link to the story. You may edit your settings or unsubscribe at any time.

Organizations in this Story

U.S. District Court for the District of New Jersey
402 East State Street
Trenton, NJ 08608

More News