40,000 Floridians due refunds of mortgage fees from Fairbanks
By Times Staff Writer
Published May 5, 2004
As many as 40,000 Florida homeowners are eligible for refunds of fees improperly charged by Fairbanks Capital Corp. under a settlement with state regulators announced Tuesday.
Fairbanks, a mortgage servicing company based in Salt Lake City, was ordered to pay $1.65-million in refunds under the settlement.
The state alleges that the company was making improper charges, including fees for releasing borrowers from mortgages that were paid off and unwarranted payments for appraisals.
As part of the deal, Fairbanks agreed to improve customer service, stop charging unjustified late fees and establish proper procedures to prevent placing unwarranted insurance on loans.
The state investigation follows a similar settlement that Fairbanks reached with the Federal Trade Commission in November.
At the time the state probe began, Fairbanks was servicing about 550,000 loans, including nearly 56,000 throughout Florida.
Consumers with questions should contact the Department of Financial Services toll-free at 1-800-342-2762 or the attorney general's office toll-free at 1-866-9NO-SCAM.
