Borrower Claims Against Loan Servicer Must Be Arbitrated Under Agreement Terms

Mealey's (June 16, 2022, 8:58 AM EDT) -- ATLANTA — A federal district court erred in denying a mortgage loan servicer’s motion to compel arbitration in a class action brought by a borrower who alleged that the servicer violated the Fair Debt Collection Practices Act (FDCPA) and Florida law by requiring the borrower to pay a “processing fee” to make his mortgage payment over the telephone because the borrower and loan servicer agreed that an arbitrator would decide what claims could be arbitrated, an 11th Circuit U.S. Court of Appeals panel ruled May 26, reversing and remanding....