Ditech Borrower Files Class Action In Ch. 11 Case

Law360 (April 25, 2019, 4:15 PM EDT) -- Bankrupt mortgage servicer Ditech Holding Corp. has been hit with a proposed class action lawsuit claiming it broke federal rules against sharing disputed missed payment information with credit agencies.

In an adversary action filed in New York bankruptcy court Wednesday, Bettye O'Neal claimed her credit score was dinged by false information that she had missed payments on her Ditech mortgage, and that Ditech violated federal law by continuing to provide that information to credit bureaus even after she had formally disputed it.

"Ditech had no policy or procedure to cease the furnishing of adverse information regarding a borrower's payment and status...

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