Vermont Attorney General William H. Sorrell

Vermont Attorney General William Sorrell has reached a settlement with Green Tree Servicing LLC, a residential loan servicing company, to pay $176,750 to the state and $55,250 in restitution to consumers for delayed payment of property taxes and illegal debt collection practices.

“We must ensure that home mortgages, which are so central to the financial well-being of Vermonters, are serviced in accordance with the law,” Sorrell said.

Vermont state law says that debt collection calls can not be made after 9 p.m., debtors may not contact borrowers at their place of business without permission and companies can't share borrowers debt information with third parties. Green Tree allegedly violated these laws at least 26 times, according to the Attorney General's office.

Greentree also allegedly paid borrower's property taxes more than 30 days late on 48 accounts. Some of the late payments were made over 100 days late. Green Tree states that it corrected those errors and the homeowners did not have to pay fees or penalties on the late payments.

Green Tree is responsible for paying $1,000 to each homeowner whose taxes were paid more than 30 days late, and to each consumer contacted at work for debt collection after instructing the company not to do so. $500 will be paid to each consumer contacted after the 9 p.m. deadline and $250 will be paid to each consumer contacted before 9 p.m., but kept on the phone past the deadline.

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State of Vermont Office of the Attorney General
109 State St
Montpelier, VT - 05602

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