Statebridge Debt Collection Settlement 2026, Claim Your Estimated $50 to $150 Per Person Refund for Illegal Mortgage Charges
If you were a mortgage holder whose loan was serviced by Statebridge, you may be eligible for a cash refund. As of February 2026, the Statebridge Debt Collection Class Action Settlement provides relief for consumers who were allegedly subjected to unlawful interest charges and “zombie” mortgage collection practices.
Statebridge Debt Collection Settlement Overview
The Statebridge Debt Collection Class Action Settlement resolves allegations that Statebridge Company, LLC violated the Fair Debt Collection Practices Act (FDCPA) and state consumer protection laws. The litigation, primarily centered in the U.S. District Court for the Eastern District of Virginia (under the case name Pierce v. Statebridge Company, LLC), alleged that Statebridge retroactively assessed interest and fees on “zombie” second mortgages—debts that had been charged off years prior and for which no monthly statements had been sent.
Plaintiffs argued that Statebridge’s attempt to collect these accrued amounts after a decade of silence was deceptive and reduced the equity in homeowners’ properties. Following a series of legal developments in 2024 and 2025, a settlement fund was established to reimburse affected account holders. As of February 2026, the claims process is active for individuals who suffered out-of-pocket losses or experienced unlawful collection attempts during the designated class period.
Claim Eligibility and Class Membership
You may qualify as a class member in the Statebridge settlement if you meet the following criteria:
- Account Status: You had a mortgage loan (typically a second mortgage) serviced by Statebridge.
- Billing Violations: Your loan was “charged off” by a previous servicer, you stopped receiving monthly statements, and Statebridge later attempted to collect retroactively assessed interest or fees.
- Geographic Scope: The settlement covers consumers nationwide, with specific subclasses for residents of states with stricter consumer protection laws like Massachusetts and Virginia.
- Direct Notice: Most eligible individuals received a direct mail notice in late 2025 or early 2026 containing a unique Claim ID.
Claim Filing Procedures and Deadlines
To secure your refund, you must follow the formal submission process established by the claims administrator.
- Claim Filing Deadline: As of February 2026, the deadline to submit your claim is May 12, 2026.
- Online Portal: The official website for filing is www.InterestSettlement.com.
- Required Documentation: You will typically need your Account Number or the Claim ID from your notice. If you are claiming specific financial damages (e.g., lost equity or improper payments made), you must provide copies of correspondence, bank statements, or payoff letters showing the disputed charges.
- Submission Methods: Claims can be filed electronically through the secure portal or via a paper form mailed to the Settlement Administrator.
Claim Amounts and Payout Calculations
The settlement fund is distributed based on the severity of the collection practices experienced:
- Statutory Damages: Class members who were subjected to illegal collection letters but did not pay the disputed fees are eligible for a pro rata share of the statutory fund, estimated at $50 to $150 per person.
- Actual Damages/Refunds: For those who actually paid the retroactive interest or fees, the settlement provides for a refund of 50% to 100% of the improper charges, depending on the available funds and the specific state subclass.
- Payout Timeline: Payments are scheduled to be issued in September 2026, following the Final Approval Hearing set for July.
What You Must Know
Critical Settlement Details and Eligibility
The most vital takeaway for 2026 is that the settlement specifically targets “zombie” debt—mortgages that went dormant and were “revived” by Statebridge. If you are currently in a standard foreclosure proceeding with Statebridge that does not involve retroactive interest on a charged-off debt, you may not be part of this specific class. The May 12, 2026 deadline is the final date to assert your rights to the $33 million fund.
Common Mistakes Claimants Make
Many homeowners miss out on their full refund due to simple errors:
- Incomplete Correspondence: If you’re claiming actual damages, failing to attach the specific letter from Statebridge that listed the retroactive fees is a leading cause for claim denial.
- Missing Deadlines: Postmarking your form even one day after the May 12 deadline will result in an automatic rejection.
- Duplicate Claims: If multiple family members are listed on the mortgage, only one claim should be filed per account number to avoid being flagged as a duplicate.
What to Do Next
How to File Your Claim: Step-by-Step
- Locate Your Records: Find your most recent mortgage statement or any collection letters received from Statebridge between 2019 and 2025.
- Check for a Notice: Look for a postcard labeled “Notice of Class Action Settlement” which contains your unique ID.
- Access the Portal: Visit InterestSettlement.com and enter your credentials.
- Complete the Form: Select whether you are filing for a base payment or a full refund of documented fees.
- Submit and Save: Keep a digital copy of your submission confirmation.
How to Verify Settlement Information
To ensure you are dealing with the court-approved administrator, use these official resources:
- Official Website: www.InterestSettlement.com
- Toll-Free Support: 1-800-XXX-XXXX (Refer to your notice for the 2026 support line).
- Claims Status: You can check the status of your refund by logging into the portal with your Claim ID.
Whether Legal Representation is Needed
Class counsel from firms like Kelly Guzzo, PLC are already representing the class. You do not need to hire your own attorney to receive a debt collection settlement payment. However, if Statebridge is currently threatening you with foreclosure on a “zombie” mortgage, you should consult a consumer protection attorney immediately to discuss whether you should opt out of the settlement and file an individual lawsuit.
FAQs
What is the Statebridge Debt Collection Class Action Settlement about?
The settlement resolves claims that Statebridge improperly assessed and collected retroactive interest and fees on old “zombie” second mortgages that had been charged off years earlier.
Am I eligible to claim in the Statebridge Debt Collection settlement?
You are eligible if Statebridge serviced your mortgage and attempted to collect interest or fees for a period where you were not receiving monthly billing statements.
What is the deadline to file a claim in the Statebridge Debt Collection settlement?
The official deadline to submit your claim form is May 12, 2026.
What documentation do I need to file a claim?
Standard claims require your Claim ID or account number; claims for actual refunds require proof of the improper charges, such as a payoff statement or bank record.
How much will I receive from the Statebridge Debt Collection settlement?
Individual payouts range from a pro rata statutory share (approx. $50–$150) to a full refund of documented improper fees paid to Statebridge.
How do I file a claim in the Statebridge Debt Collection settlement?
The fastest way is to use the online filing system at www.InterestSettlement.com before the May 2026 deadline.
Where can I find more information about the Statebridge Debt Collection settlement?
Visit the official settlement website for access to court documents, the full settlement agreement, and a list of important dates.
Last Updated: February 13, 2026
Disclaimer: This article is for informational purposes only and does not constitute legal advice.
Don’t miss the deadline for your mortgage refund. File your Statebridge claim today.
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Meta Description: Claim your refund from the Statebridge Debt Collection Settlement. Learn about the May 12, 2026 deadline, eligibility rules, and how to file your claim online.
About the Author
Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
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