New Hampshire Homeowner Continues Fight With Mortgage Servicer

The Concord Monitor ran an interesting article today on the continuing battle of New Hampshire homeowner Michael Dillon against the mortgage servicing company fomerly known as Fairbanks Capital Corp., which, after it was charged several years back by the Federal Trade Commission with conducting illegal foreclosures, collecting unwarranted fees and other predatory lending practices that resulted in a $40 million settlement, has since changed its name to Select Portfolio Services.

The battle began in 2001 when Dillon received a letter from Fairbanks Capital Corp. informing him that his mortgage loan was in default and that ultimately resulted in an attempt by the mortgage lender to foreclose on his Manchester home even though he says he made the payments he owed.

According to the article:

• "This spring, Dillon filed a new lawsuit against Select Portfolio Services and five other national companies that played a role in handling his mortgage. This time, he is seeking damages, and the charges - which include conspiracy and racketeering - are far-reaching. [Attorney Walter] Maroney and Dillon argue in the suit that Select Portfolio Services engaged in unfair and deceptive servicing practices that resulted in high interest rates, unwarranted penalties, and illegal foreclosures. The other companies, including Merrill Lynch and LaSalle National Bank, were aware of that pattern and failed to do anything about it, they argue. The case is scheduled to be heard in federal court in Concord next spring."

Former New Hampshire Consumer Protection Bureau chief Walter Maroney of Manchester represents Mr. Dillon in the legal proceedings. Maroney recently left the Concord law firm of Gallagher, Callahan & Gartrell last month after seven years as a partner to start his own one-man consumer protection law firm.

As a part of his battle:

• "Dillon spends his spare time poring over contracts between mortgage servicers and the holding companies that own the loans, learning the intricacies of the industry most homeowners have never heard of, let alone attempted to understand. He maintains a website about his travails with links to some of his court documents and congressional testimony on subprime lending."

For more, see Taking on an industry (After a mortgage lender tried to foreclose on his home, Michael Dillon made it his mission to set the record straight on his own).

Consumers victimized by predatory mortgage servicing and others can find Mr. Dillon's website at GetDShirtz.com.

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