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Video Embedded Re: banks gone wild, attempt to forclose on elderly woman who missed final payment while in hospital...
 
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Re: banks gone wild, attempt to forclose on elderly woman who missed final payment while in hospital...


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.

 

 

 
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