Saturday, January 15, 2011
Woman fights bank fees, missed final house payment
PHILADELPHIA – An elderly New Jersey woman billed $5,800 after missing the final payment on her 30-year mortgage can pursue her lawsuit against the debt collectors.
Lawyers for 85-year-old Dorothy Rhue Allen say the fees charged by two banks and a law firm violate consumer-protection laws.
The suit says LaSalle Bank and Cenlar Federal Savings Bank started foreclosure proceedings in 2007 after the hospitalized Allen missed the last $432 payment on her Deptford, N.J., home.
The banks advised her lawyers she could pay $5,800 to avoid foreclosure. But her lawyers instead sued over the fees, and the foreclosure action was dropped.
A U.S. appeals court this week says Allen can pursue her case, reversing a federal judge who threw it out.
A lawyer for the Trenton, N.J.-based banks declined to comment.