Settlement Information
A settlement of $1,500,000 has been reached in a class action lawsuit alleging that the Notices of Default that PHH Mortgage Corporation d/b/a PHH Mortgage Services (“PHH”) sent to borrowers who were behind on their monthly mortgage payments violated the Fair Debt Collection Practices Act (“FDCPA”), California’s Rosenthal Act, the North Carolina Debt Collection Act (“NCDCA”), and the North Carolina Collection Agency Act (“NCCAA”). Plaintiffs Tonia Williams and Beverly Dantzler have alleged that PHH’s Notices of Default contained false threats that PHH would immediately accelerate and foreclose upon mortgaged loans if the default was not cured by the stated deadline when, according to Plaintiffs, PHH did not intend and legally could not accelerate or foreclose until such loans became at least 120 days delinquent. PHH denies Plaintiffs’ allegations and that it did anything wrong, and the Court has not decided who is right. PHH, and the Plaintiffs, Tonia Williams and Beverly Dantzler (together with PHH, the “Parties”), agreed to enter into this Settlement to avoid the uncertainties, delays, and expenses of ongoing litigation, while providing class members with definite benefits now.
Who Is a Class Member?
The “Settlement Class” includes each of the following:
The FDCPA Class: All borrowers on residential mortgage loans secured by mortgaged property in the United States (1) whose mortgage loans were serviced by PHH, (2) to which PHH acquired servicing rights when such loans were 30 or more days delinquent on their loan payment obligations, and (3) to whom, according to PHH’s records, one or more Notices of Default were sent between December 18, 2022 and December 15, 2025.
The California Class: All borrowers on residential mortgage loans secured by mortgaged property in the State of California whose loans were serviced by PHH, and to whom, according to PHH’s records, one or more Notices of Default were sent between December 18, 2022 and December 15, 2025.
The North Carolina Class: All borrowers on residential mortgage loans secured by mortgaged property in the State of North Carolina whose loans were serviced by PHH, and to whom, according to PHH’s records, one or more Notices of Default were sent between January 14, 2021 and December 15, 2025.
Your Legal Rights and Options
Option and Deadline |
Your Legal Rights |
Do Nothingno deadline |
You will remain a member of the Settlement Class, your claims against PHH arising from PHH’s Notices of Default sent during the relevant time period will be released, and you will automatically receive your share of the settlement relief by check. (You may elect to receive your share of the settlement relief electronically by clicking HERE.) |
EXCLUDE YOURSELF FROM THE SETTLEMENTby May 5, 2026 |
You will receive no payment from the Settlement, but you also will not be bound by the Settlement release. This is the only option that allows you to be a part of any other lawsuit against PHH arising from PHH’s Notices of Default sent during the relevant time period. |
Object to the Settlementby May 5, 2026 |
Write to the Court about why you think the Settlement is unfair, inadequate, or unreasonable. You may not object to the Settlement if you exclude yourself from it. If you wish to personally appear at the Fairness Hearing to voice your objection, you must say so in your objection. |
FILE A NOTICE OF INTENTION TO APPEAR AT FAIRNESS HEARINGby May 5, 2026 |
If you retain counsel and you wish your counsel to appear at the Fairness Hearing to voice any concerns you may have about the Settlement, your counsel must file a Notice of Intention to Appear with the Court by May 5, 2026. |
Date of fairness hearingJune 9, 2026 at 9:30 a.m. EDT |
A Fairness Hearing has been set for June 9, 2026, beginning at 9:30 a.m. EDT, before the Honorable Kenneth D. Bell at the United States District Court for the Western District of North Carolina, U.S. Courthouse, 7200 Charles R. Jonas Federal Building, 401 W. Trade St., Charlotte, NC 28202. |