Loancare LLC Pays $4.5 Million to End Payment Service Fee Suit

Loancare LLC will pay $4.5 million to resolve claims that it violated of the West Virginia Consumer Credit Protection Act and other laws when it charged fees for optional payment services in connection with mortgage payments.

Judge Frank W. Volk granted final approval of the class settlement on Monday.

Before payment of attorneys’ fees and expenses, service awards, and other costs, the recovery amounts to $216 per fee paid to LoanCare, according to the plaintiffs’ motion for final approval of the deal.

• The $216 per class member recovery is significant “relative to the maximum potential statutory recovery per class member, ...