Consumer complaint received 2022-10-15
Company: MONEY SOURCE, INC., THE
State: KY
Product: Mortgage
Sub-product: VA mortgage
Issue: Trouble during payment process

Complaint:
I pay my mortgage each month although after The Money Source miscalculated my taxes last year, they increased my payment XXXX  I pay directly from my bank annotating the respective month payment. Countless times I will send additional money to be applied to the following month specifically noting the payment is to go towards the following month. In XXXX I sent separate payments XXXX apart and each time again, they credited to my principle. I have contacted them over 10X each time they make the error. But now they have made this mistake so many times, each time ignoring my inquiries they have my loan as 30 days late. Common sense should say if a customer owes money, the payment is not towards the principle but they do nothing to correct the error.  Nowhere in my loan documents does it state I can only make one payment and it has to be online. I have called, I have emailed and they not only ignore requests to fix the error but they continue doing it.  I have never paid extra money to go to my principle, I specifically told them this two or three years ago. But now they just apply my regular payment to the principle and report my mortgage as late. They have caused five credit cards to close, and my credit report to take a massive hit.  I can barely pay the mortgage with the XXXX increase bc they miscalculated my home value but now having to pay extra because they incorrectly credit principle, is getting insane. I email them numerous times to have evidence for when i have to prove I made contact. Calling gives me no protection. Besides my emails are clear for someone to forward to correct.  They give a blanket response to call. But when I called last year they had no record. My emails keep asking them to correct the mistake. I ask them to please review the memo line that annotates monthly payment but I am beginning to think it is some scam to get more money. I have asked them to go back two years and adjust my account for their mistake and they will see I am not behind my payments. If they can not do that to at least do not report payments incorrectly. It seems basic common sense and it should not require hundreds of emails. They dont even bother to respond. But this is my last good faith effort to resolve because their reckless actions have had detrimental impact om other areas of my life. The next logical step is a lawsuit because the compensatory damages is insignificant to punitive. This was unnecessary undue stress to purposely cause a customer. They have time to send late letters and report to credit bureau they could correct their mistake.  It is not my fault they assume a payment is a principle when it does not state that and common sense should prevail not to credit principle when a past due payment is owed. One should assume the money is for the bill. How am I supposed to know ? It is not like the error is consistent. I have sent numerous payment in  similar fashion and the payment credited.The inconsistency is much worse bc it creates anxiety every time i send payments.    only reason I cant pay my mortgage is because the money source automatically credits any payments not sent from their website as principle.  I would use their website accepts it can take two weeks for them to deduct the funds which is why I send a check from my bank to avoid any issues of the payment not clearing. In XXXX XXXX i began sending extra payments because i knew i would be having medical treatment in XXXX XXXX and wanted to be current when I was out of work. Fast forward in XXXX XXXX I check my account and realize all the money is applied to principle but worse I send funds to get ahead and they apply two XXXX payments putting me another month behind. I contact them stating any biweekly payments or additional funds were marke as a monthly payment and was market as a principle payment. But worse why would they assume I was paying principle when i was behind according to their records.idk if they contract to people whose English is not a first language but I never dreamed it would esculate to seeking legal representation because they knowingly were re so its sometimes easier to pay half each pay period with the XXXX increase. XXXX is a huge difference unexpectantly when it was my belief the purpose of a mortgage company was to do the right estimates.  So after their miscalculation I have to break up my payments but it should not result in the funds being paid to my principle and reporting late fees?  I understand the first mistake a few years ago but to continue to the point i am now delinquent is insane. I contacted them when it first happened to avoid this very situation in XXXX. I can not even refinance with a new company who can credit payments correctly because the money source has killed my credit reporting as delinquent. My fear now is this will continue occurring and I will be foreclosed on solely because The Money Source puts my payments to my principle unless I pay online. They have done it so mang times they have me as two months behind and it is not late at all. The amount of stress this has caused is unbearable and they simply do not care. I told them 30 days ago if they did not credit my payments I would file a complaint. I really thought a threat filing a complaint would prompt them to correct. I just dont know what to do. I annotate the memo it happens. I call and it continues to occur but now it has gotten to the point that credit cards "think" I can not pay my bills and closing credit cards. I was not able to pursue my second year into my masters because my score dropped and deemed higher risk since its a VA loan. Based on my calculations I should be current but based on XXXX I am 60 days late. Please help me.  The stress alone from the increase was enough but this is over the top when it is all on their end and the worse part they make no attempt to correct or resolve  Instead they keep doing it  I am a XXXX XXXX with XXXX and the stress caused by late payments when I have never paid anything late caused me to go from monthly therapist sessions to weekly. I have reached the point I may as well stop paying all together because at this rate Ill continue paying and be XXXX.  Most people worry about having the money paying the mortgage but i think its far worse when you are paying your mortgage and still having to worry about foreclosure because the money source wont take five minutes to review their mistake. Please help me. I have no recourse but legal action. Even if they correct the errors it wont undo the impact it has caused.  Contacting them has gotten me nowhere but close  to foreclosure. I can provide all my emails. All my payments to prove they are wrong. The irony is they NEVER call me to ask about the overdue bill they only send letters which makes me believe they purposely know what they are doing.  I will contacted the XXXX to make them aware to hopefully intervene since who knows how many customers they do this to in order to meet their financial issues.  Keep crediting payments  and foreclosure occurs.  Seems like they are running a huge scam.

Company response to consumer: Closed with explanation