At Advocate Capital, we stand with trial lawyers who hold corporations accountable for deceptive practices. Milam v. Selene Finance is one current case that underscores how critical that work is. According to Public Justice, which serves as co-counsel on the appeal, this class action case began after the plaintiff fell behind on her mortgage payments and received a threatening collection letter from Selene Finance, her mortgage servicer. The letter from Selene Finance warned the plaintiff that if she didn't pay the past-due amount within 35 days, the company could accelerate her loan, foreclose on her home, and initiate a judicial sale.
Federal law prohibits mortgage servicers from initiating foreclosure proceedings until a borrower is at least 120 days delinquent. The plaintiff had not reached that threshold.
In response, she filed a class action lawsuit, asserting that Selene's letter violated the Fair Debt Collection Practices Act (FDCPA) by making illegal threats to collect a debt. Under the FDCPA, companies cannot threaten actions they are not legally allowed to take or do not intend to carry out.
The trial court dismissed the plaintiff's case, not because it disagreed about the threat's legality, but because it believed she hadn't followed a "notice-and-cure" clause in her mortgage contract. However, the contract in question wasn't with Selene Finance. It was with her original lender, a separate company altogether.
On April 24, 2025, Public Justice filed an appeal with the Seventh Circuit Court of Appeals.
Public Justice states, "Corporations should not be allowed to use contracts about one thing to prevent lawsuits about a totally different thing, nor should they be allowed to use contracts they were never part of in the first place to avoid consequences for breaking the law."
This appeal is not just about one consumer—it's about whether corporations can use unrelated or inapplicable contracts to shut down legitimate legal claims. Cases like Milam v. Selene Finance demonstrate how easily consumers can be mistreated—and how crucial that they have a fair shot in court. That's why trial lawyers are so important.
We appreciate Public Justice and its allies' continued fight for the rights of consumers. If you want to support Public Justice's work, visit their website to learn more.
