Milberg Files Homeowner Class Action Against Alleged Foreclosure Mill

By on November 10, 2015

In August 2015, Milberg LLP filed a class action against Michigan foreclosure law firm Trott & Trott, now called Trott PC.  The action was brought on behalf of people that received a foreclosure letter from the Trott firm on a home located in Michigan.

Under federal and Michigan law, debt collection notices cannot give the impression that they are sent by a lawyer if they are not.  These laws were passed because homeowners perceive letters from lawyers as more intimidating than letters from debt collection firms; they reasonably assume that if a lawyer sent a letter the lawyer has reviewed the file and determined that the repayment demand was appropriate and that any threatened legal action has merit.  In reality, some debt collection firms generate such letters in high volume without legal review and with little or no due diligence.

The class action accuses the Trott firm, one of Michigan’s highest-volume foreclosure firms, of sending foreclosure notices on law firm letterhead, signed “Trott & Trott P.C. , that mislead a homeowner to believe that it was a communication from a lawyer, when in fact the letter is not generated or reviewed by any lawyer.  It also alleges that the Trott firm engaged in illegal “overshadowing” by failing to properly inform homeowners that any foreclosure will be stayed for 30 days so that debtors can exercise their right to validate and dispute the debt.  The action seeks to cover Michigan homeowners that received such letters in the past six years.

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