Tampa homebuilder sued over fees

By SCOTT BARANCIK

© St. Petersburg Times, published June 8, 2000

Two Georgia residents who bought houses from Jim Walter Homes Inc. and later went bankrupt have filed suit against the Tampa homebuilder, claiming it broke Georgia law by secretly charging them for collection-related legal fees.

The suit, filed late last month in Cobb County Superior Court, claims Jim Walter Homes and an affiliated company without warning charged Joann Davis and Tommy C. Roach for legal fees incurred while trying to collect on their late mortgage payments. The companies added $475 to the principal of Davis' loan for the fees and $810 to Roach's principal but didn't notify them, the suit says.

Georgia law requires lenders to notify borrowers that they have 10 days to make payment or assume the lenders' legal fees, the suit says.

Without specifying a dollar amount, the suit seeks reimbursement of the fees, compensatory and punitive damages, and attorneys' fees.

A spokesman for the companies' parent, Walter Industries Inc. of Tampa, said the suit was without merit. "We'll contest it," David L. Townsend said.

Attorneys for the plaintiffs have asked the court for class-action status. If granted, other Georgia customers of Jim Walter Homes could potentially join the suit.

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