Mr. Cooper and ACI Payments are taking steps to move past a servicing mistake that occurred two years ago, which involved erroneously drafting payments totalling a combined $2.3 billion from borrowers' bank accounts.
Said settlement should be finalized and signed by Sept. 30, 2024. After that, Mr. Cooper will file a voluntary dismissal of the suit, a settlement notice submitted Aug. 30 said.
Litigation was first filed by the Greater Dallas-area servicer in September 2023 and accused the technology company of not abiding by their agreement when it used Mr. Cooper's confidential information in the incident.
Contractors for ACI Payments, a subsidiary of ACI Worldwide, caused
This snafu impacted close to 500,000 borrowers with mortgages serviced by Mr. Cooper. Roughly 100 of those impacted incurred non-sufficient funds fees from their banks as a result of ACI's error, the mortgage servicer
Mr. Cooper declined to comment on pending litigation. ACI Payments could not be reached for commentary.
The two companies moving towards settlement was first reported by HousingWire.
Apart from litigation filed by Mr. Cooper, a handful of regulators, including the Consumer Financial Protection Bureau, penalized the payment software company for its error.
At the time, ACI said it "consented to the issuance of the consent order without admitting any wrongdoing to avoid the expenses and distraction of litigation."
Four months later, ACI Payments
"Companies must be more diligent when handling consumers' data and payment information to not cause worry and panic among consumers," Letitia James, the attorney general of New York, said in a previous statement commenting on the settlement. About 27,000 New Yorkers were impacted by the technical mistake.
