Court Denies Motion to Certify Class In Favor of Larson Client

Online Payment with Credit Card

Larson notched a victory for Seterus, Inc., in a Fair Debt Collection Practices Act (FDCPA) suit that was pending in the U.S. District Court for the Eastern District of California since the fall of 2020. Nearly two years later, the court agreed with Larson’s arguments and denied the plaintiff’s motion for class certification.

The plaintiff alleges that Seterus, a Mr. Cooper company and mortgage servicer, provided services for his loan and charged “unlawful convenience fees” for online or phone payments, violating the FDCPA and Rosenthal Fair Debt Collections Practices Act (“Rosenthal Act”). In 2020, the plaintiff filed a motion to certify a nationwide class under the FDCPA and a statewide class under the Rosenthal Act, which the Larson team opposed.

Partners Paul A. Rigali and Emilie J. Zuccolotto argued that the plaintiff failed to establish commonality and predominance, as the suit had too many individualized questions regarding whether borrowers are in default and the terms of the mortgage agreements predominate. In an order on March 29, 2022, U.S. District Judge Troy L. Nunley denied class certification, finding that the plaintiff did not meet the necessary requirements under Rule 23(a) and Rule 23(b) for class certification.


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