Justices Take Up Case Over Attorney Liability in Mortgage Collection
The state Supreme Court has agreed to hear arguments in a case over whether a state law prohibiting residential mortgage lenders from collecting excessive fees and charges should be applicable to a lender's attorneys.
January 15, 2015 at 07:52 PM
6 minute read
The state Supreme Court has agreed to hear arguments in a case over whether a state law prohibiting residential mortgage lenders from collecting excessive fees and charges should be applicable to a lender's attorneys.
The justices granted allocatur in the joint cases Glover v. Udren Law Offices and Johnson v. Phelan Hallinan & Schmieg on Tuesday. The one-page per curiam orders in the cases limited the arguments to the issue of whether Act 6, Section 502 provides a remedy against any “person” collecting prohibited fees on behalf of a residential mortgage lender.
In April 2014, the state Superior Court held the Loan Interest and Protection Law, which is referred to as Act 6, does not provide a plaintiff a cause of action to sue a lender's attorney for allegedly collecting excessive fees.
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