- December 2009, Debtor filed for bankruptcy after foreclosure proceedings began on her home.
- Chapter 13 Plan included mortgage arrearages payments through the Plan over 42 months
- October 2011, Debtor received notice from Ocwen stated that Debtor owed $16,000.
- April 2013, Ocwen stated Debtor had a $1,000 credit balance.
- June 2013, Ocwen did not respond to notice that Debtor had made her last cure payment.
- July 2013, Ocwen sent letter to Debtor indicating her “severely delinquent mortgage”; Ocwen later stated the letters were a mistake.
- Ocwen still insisted payments were delinquent.
- February 2015, Debtor sued Ocwen in Court for Breach of Contract and violations of the Fair Debt Collections Act, Consumer Fraud and Deceptive Business Practices.
- 4 years after Debtor received her Discharge and 2nd day of jury trial, Ocwen found that the Debtor was current.
- Jury awarded Ocwen to pay $582,00 in compensatory damages and $3 million in punitive damages for the pain, frustration and emotional torment Ocwen put Debtor through.
- Ocwen appealed the punitive damages as excessive.
- Ocwen’s conduct was reprehensible but not to an extreme degree.
- Debtor suffered no physical injuries
- Ocwen was indifferent to her rights including rights that originated from her bankruptcy.
- Compared the award to maximum civil penalty of $50,000 under the statute and agreed that Ocwen’s conduct should not equal a penalty of 60x the maximum civil penalty.
- Reduced the punitive damages award to $582,000 considering the mistreatment of Debtor’s $135,000 mortgage.
I have found that lenders have been wrong in the amount paid versus amount stated by the lender.
Many times, I had to demand a bank reconciliation and found that my client’s payments were not properly recorded. The lenders gave the matter a thorough review and corrected their records.
Lender’s records can be incorrect and I always deal with discrepancies immediately for my clients.