Agent

Excessive loan notary fees spark suit

Learn the New Luxury Playbook at Luxury Connect | October 18-19 at the Beverly Hills Hotel

The Anthonys took out a home loan from American General Financial Services Inc. and paid notary fees in connection with the signing of the loan that exceeded the $4 per service maximum imposed by section 45-17-11(b) of the Official Code of Georgia Annotated (OCGA). On their own behalf and a class of similarly situated consumers, the Anthonys sued American General, asserting three separate causes of action: that section 45-17-11(b) created a private cause of action, empowering consumers to recover the fees paid in excess of the statutory maximum; that by charging a fee beyond the statutory maximum, American General breached its Loan Agreement with the Anthonys and other borrowers, in that the fee was not "reasonable and necessary"; and that American General was liable for fraud and "money had and received," by virtue of charging these illegal fees. At the trial court level, the Anthonys' case was dismissed entirely, but they appealed to the U.S. Court of A...