NovelPay $3M Settlement for Unlicensed Collection Fees

If you paid a service fee to NovelPay in connection with their collection of charges from residential property in Maryland, including rent and community association dues, between April 19, 2018, and December 26, 2024, you may qualify to submit a claim for a portion of a $3,000,000 class action settlement.

NovelPay has agreed to pay this amount to settle allegations that it acted as a collection agency without a license or bond, charging service fees in violation of Maryland law.

Who is eligible for a payment?

You are a class member if:

• You paid a service fee to NovelPay related to charges from residential property, including rent and community association dues
• The property is located in Maryland
• Your service fee payment your made between April 19, 2018, and December 26, 2024

How much is the NovelPay settlement payout?

Payment amounts will be determined by the total amount of service fees each claimant paid, and the number of approved claims submitted.

How to claim a NovelPay service fee settlement payment

To claim a payout, a claim must be filed by August 8, 2025. Class members can file a claim online at the online claim form or download and print the PDF claim form to mail to the settlement administrator.

Settlement administrator mailing address: Stokes v. NovelPay, LLC c/o Settlement Administrator, P.O. Box 16, West Point, PA 19486

Payout options

Claimants can select one of:

• Electronic payment
• Paper check mailed to the address provided

$3 Million settlement fund

• Payments to approved claimants: Based on claims
• Settlement notice and administration costs: TBD
• Attorneys' fees: up to $1,000,000 plus expenses
• Service award to Named Plaintiff: $15,000

Important dates

• Deadline to File a Claim: August 8, 2025
• Final Approval Hearing: April 28, 2025

When is the NovelPay payout date?

The Court will hold a Fairness Hearing on April 28, 2025, to decide whether to approve the settlement. Once the judge grants approval, payments will be issued to approved claimants no later than September 22, 2025. Note that appeals may delay the process.

Why is there a class action settlement?

The lawsuit alleged that NovelPay acted as a collection agency without a required license or bond, and charged service fees unlawfully. NovelPay denies these claims but agreed to settle to avoid further litigation and the possibility of a costly trial.

Sources

1. Official Settlement Website
2. Class Notice