Initial Frank and Janet thought it was a very simple error. Their mortgage had been recently sold to a new company with a new servicing business. As with the prior lender, they had sent in their mortgage payment by way of a individual check among the first and the fifteenth of the month and the payment had been posted with small event as getting received as agreed.

Around the 20th of month, a rather cryptic contact was received on the answering machine stating the payment had not been received and a late charge would be applied and charged and that they required to make a payment instantly. OK Frank and Janet reasoned that the payment could have been lost in the mail. Items occur, while it was the first time in two years that a payment was late. Frank and Janet has some credit challenges three years ago and identified it vital to entertain a sub prime loan to get the home that they presently resided. Hence they have been dealing with a sub prime lender and all that goes with it. Swiftly, Frank and Janet called customer service and had been in a position to make a verify debit on line for the payment plus a late charge right out of their checking account. The late fee of 5% amounted to $62.50. Frank told the mortgage-servicing representative that they would place a cease payment on the check and instructed them to flag the account and not deposit that specific verify (with #10224 check quantity dated on the 2nd of that month) as he was going to place a “Stop Payment” on it. After the call they named their bank and put a “quit payment” on that verify. This price them $25. Five days later one more get in touch with came in from the mortgage servicing firm stated that they had deposited the mailed verify and it came back resulting in a $50 charge for the transaction given that it hadn’t gone through. The conversation went nowhere as there wasn’t a record anywhere.

Frank and Janet looked at every other and collectively rolled their eyes whilst verbally reviewing what had transpired. Frank asked Janet rhetorically, “Can you believe this”?
Subsequent month rolls around and this time Frank and Janet make a unique effort to send the commercial finance payment in close to the 1st of the month. About the 20th of the month, Frank and Janet received another call from the mortgage servicing business indicating once again, that the payment had not been received and that there would be a further late charge. The discussion became exceptionally heated with Frank major the charge. Frank demanded to speak with a supervisor relating to the second time around of the mishandling of the monthly mortgage payment. The supervisor was not of a lot help claiming the check had not been received. Frank and Janet were determined that they would not put yet another “Stop Payment” on this check at a cost of $25. Not obtaining any satisfaction, Frank told the client service supervisor that he would call back in seven days to see if the verify had been received and posted. Seven days later, Frank known as and the verify had been received and posted but there would be a late charge that would apply. Another $62.50 late charge would apply. Frank and Janet had been frosted beyond belief but at the exact same time relieved that the check had arrived. What could be going on they wondered.

The subsequent month Frank and Janet decided to send in the mortgage payment a week prior to the 1st providing the mortgage servicing organization a lot of time to acquire and post the payment well within the time frame. On the 20th of that month a get in touch with was received from the mortgage servicing business stating once once again the payment had not been received. Frank and Janet were beside themselves. This time Janet demanded to speak with a supervisor. The supervisor explained that the verify had not been received. Janet pressed the supervisor additional, “Has this been a recurring issue with other borrowers?” There was a long pause of silence from the supervisor followed by, “Uh…no…I do not assume so.” Janet wasn’t happy with any of the answers and what was going on with this new mortgage servicing firm and was determined to get the bottom of these “phantom late charges”. Adding insult to injury, the following month a thirty-day late was reported to the credit bureau. Frank and Janet engaged in their own spirited credit repair campaign.

Immediately, after obtaining off the phone with the supervisor Janet and Frank went on line and began researching the business for any information and facts that may shed some light on what was happening. It was identified a series of stories and articles about complaints regarding this servicing organization. A ton of new service company had been added without the staff to manage it. Verify and payments had been stacked up and untouched. Complications and complaints mounted. State and Federal agencies were suing with enormous fines to be levied. Frank and Janet decided to send bank checks by certified mail return receipt. This was less expensive than $62.50 a crack and could now prove prepared receipts of their payments.