Per the Maryland Attorney General’s Office: “Maryland Attorney General Anthony Brown has joined a coalition of 49 Attorneys General announcing a $10 million settlement with payment processor ACI Worldwide over a 2021 testing error that led to the attempted unauthorized withdrawal of $2.3 billion from the accounts of mortgage-holders. The settlement includes injunctive relief designed to prevent a similar incident in the future.
ACI Payments, a subsidiary of ACI Worldwide Corp., is a payment processor for a variety of third-party clients, including mortgage servicers. Nationstar Mortgage, known publicly as “Mr. Cooper,” offered ACI’s Speedpay product to its customers so they could schedule and electronically pay their monthly mortgage payments through the Automated Clearing House (ACH) system. On April 23, 2021, ACI was testing the Speedpay platform when it erroneously attempted to withdraw mortgage payments from hundreds of thousands of “Mr. Cooper” customers on a day that was not authorized or expected. In many cases, consumers were subjected to the attempted withdrawal of multiple mortgage payments from their personal bank accounts. The Attorneys General allege the April 2021 incident was due to significant defects in ACI’s privacy and data security procedures and technical infrastructure related to the Speedpay platform.