On March 16, 2020, plaintiffs James and Lisa Shuff sued their lender in the Southern District of West Virginia (case no. 20-cv-00184.) Plaintiffs are represented by Mountain State Justice, Inc.
The complaint is a purported class action which seeks “to temporarily stop foreclosures in West Virginia during the national emergency caused by the spread of the COVID-19 virus.” Plaintiffs allege that the defendants conspired to perpetrate a predatory lending scheme whereby they obtained a loan from a mobile home dealer that exceeded the actual property value, and that the servicer failed to modify their loan after they complied with a trial plan agreement. The complaint seeks a temporary injunction on behalf of the class to stop foreclosures on loans with sales set during the COVID-19 pandemic, on the grounds that “foreclosure sales during this crisis cannot meet commercially reasonable standards.” They also assert individual claims consisting of various contract “defenses,” as well as fraud and unfair debt collection claims. They seek unspecified actual damages, civil penalties and attorney’s fees and costs.
The defendants have not yet responded to the complaint.