A New Jersey woman was billed $5,800 after missing the final payment on her 30-year mortgage.
Lawyers for 85-year-old Dorothy Rhue Allen say the fees charged by two banks and a law firm violate consumer-protection laws.
The suit says LaSalle Bank and Cenlar Federal Savings Bank started foreclosure proceedings in 2007 after the hospitalized Allen missed the last $432 payment on her Deptford, N.J., home.
The banks advised her lawyers she could pay $5,800 to avoid foreclosure. But her lawyers instead sued over the fees, and the foreclosure action was dropped.