Very first Frank and Janet thought it was a straightforward error. Their mortgage had been not too long ago sold to a new corporation with a new servicing company. As with the prior lender, they had sent in their mortgage payment by way of a personal verify between the very first and the fifteenth of the month and the payment had been posted with tiny event as getting received as agreed.
Around the 20th of month, a rather cryptic get in touch with 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 needed to make a payment instantly. OK Frank and Janet reasoned that the payment may well have been lost in the mail. Items happen, though it was the initial time in two years that a payment was late. Frank and Janet has some credit challenges 3 years ago and found it necessary to entertain a sub prime loan to obtain the property that they at the moment resided. As a result they were dealing with a sub prime lender and all that goes with it. Speedily, Frank and Janet known as client service and had been capable to make a check debit on line for the payment plus a late charge correct out of their checking account. The late charge of 5% amounted to $62.50. Frank told the mortgage-servicing representative that they would place a quit payment on the check and instructed them to flag the account and not deposit that certain check (with #10224 check quantity dated on the 2nd of that month) as he was going to put a “Stop Payment” on it. Immediately after the get in touch with they known as their bank and put a “stop payment” on that verify. This price them $25. 5 days later yet another get in touch with came in from the mortgage servicing organization stated that they had deposited the mailed verify and it came back resulting in a $50 charge for the transaction due to the fact it hadn’t gone via. The conversation went nowhere as there wasn’t a record anywhere.
Frank and Janet looked at each and every other and collectively rolled their eyes although verbally reviewing what had transpired. Frank asked Janet rhetorically, “Can you believe this”?
Subsequent month rolls about and this time Frank and Janet make a specific effort to send the mortgage payment in close to the first of the month. Around the 20th of the month, Frank and Janet received one more contact from the mortgage servicing corporation indicating once again, that the payment had not been received and that there would be an additional late charge. The discussion became extremely heated with Frank leading the charge. Frank demanded to speak with a supervisor with regards to the second time around of the mishandling of the month-to-month https://uk-mortgagebroker.co.uk/first-time-buyer-mortgage-calculator/ payment. The supervisor was not of a great deal enable claiming the check had not been received. Frank and Janet had been determined that they would not put a different “Stop Payment” on this verify at a cost of $25. Not getting any satisfaction, Frank told the consumer service supervisor that he would get in touch with back in seven days to see if the verify had been received and posted. Seven days later, Frank called and the check had been received and posted but there would be a late charge that would apply. Yet another $62.50 late charge would apply. Frank and Janet were 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 just before the 1st giving the mortgage servicing enterprise a lot of time to get and post the payment well inside the time frame. On the 20th of that month a get in touch with was received from the mortgage servicing firm stating when once again the payment had not been received. Frank and Janet had been 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 further, “Has this been a recurring dilemma with other borrowers?” There was a lengthy pause of silence from the supervisor followed by, “Uh…no…I never consider 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 personal spirited credit repair campaign.
Immediately, immediately after receiving off the phone with the supervisor Janet and Frank went on line and started researching the firm for any information and facts that could shed some light on what was happening. It was discovered a series of stories and articles about complaints concerning this servicing business. A ton of new service enterprise had been added without the staff to handle it. Verify and payments were stacked up and untouched. Troubles and complaints mounted. State and Federal agencies were suing with huge fines to be levied. Frank and Janet decided to send bank checks by certified mail return receipt. This was more affordable than $62.50 a crack and could now prove prepared receipts of their payments.