PHH Mortgage Corporation has agreed to pay $1.5 million to settle a class action lawsuit alleging the mortgage servicer sent misleading default notices to borrowers. The lawsuit claims these notices violated the Fair Debt Collection Practices Act (FDCPA) and state consumer protection laws.
The case, Williams, et al. v. PHH Mortgage Corporation, et al. (Case No. 3:25-cv-00144-KDB-UMJ), was filed in the U.S. District Court for the Western District of North Carolina. If you received a notice of default from PHH Mortgage on your residential mortgage loan, you may be eligible for automatic compensation.
You may be eligible to file a claim if you:
Compensation amounts vary based on the number of loans and each loan's delinquency status when PHH began servicing it. Borrowers with multiple loans may receive multiple payments. The exact per-person amount will depend on the total number of eligible class members.
Filing your claim is quick and easy:
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Download for iPhone Download for AndroidNo, this settlement does not require a claim form. If you qualify, you should receive payment automatically once the settlement is finalized.
The individual payout amounts haven't been announced yet. The $1.5 million total will be divided among eligible class members based on the final settlement terms.
The settlement covers allegedly misleading default notices sent by PHH Mortgage Corp. to borrowers. Specific details about which notices qualify are still being finalized as part of the settlement process.
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