Consumer complaint received 2017-11-22
Company: Ditech Financial LLC
State: MD
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
I had been charged a late fee because ditech had raised their rates. 

However, they failed to deliver proper notification of the raised rates. I had never missed a payment in over 10 years. There was no mention of the raised rates ( as at the time I was paying via internet ). 

All dates below are XX/XX/XXXX. 

XX/XX/XXXX : I email ditech about the situation. 

XX/XX/XXXX : ditech confirms there is no late fee balance ( via email ) XX/XX/XXXX : ditech explains their payment structure where funds from fines are withheld and not used to fully pay off the late fee, thus occurring in another late fee charge ( I have this confirmed in writing by ditech ) XX/XX/XXXX : Another late fee is charged, despite having been assured no charges would be incurred. We paid an extra {$120.00} XX/XX/XXXX : ditech assures, in writing, that money will be applied to the next month 's statement XX/XX/XXXX : I email ditech because they failed to credit the additional money they received. 

XX/XX/XXXX : ditech responds explaining that the money was used to pay off a fine from XX/XX/XXXX ... explaining there are existing charges and fines that I was no notified of Summary : ditech charges fines that are unwarranted. then explains that when a fine is paid ... they use the money to partially pay off the fine, thus leaving an unpaid balance in tact. when they received more money, they instead bring up more fines that were never mentioned. 

ditech has consistently withheld information of my account and ( assuming that these charges are not also nonsense charges ) failed to fully explain how to pay off any existing fines. Also, their payment structure is designed so that fines are never paid in full, and instead held in " unapplied funds '' ( I have this in writing from ditech ). 

-- - I have attached the full email conversation with ditech ... I will checklist the relevant pages Page 4 : ditech confirms that they do not use the money received to fully pay off the bill Page 5 : ditech presents a chart confirming that they do not use the money received to fully pay off any fines or charges ... instead they withhold the money in " unapplied funds '' Page 7 : ditech is informed they received an extra {$120.00} and is asked to credit that amount to the next month 's bill Page 8 : ditech explains the payment will be held in " unapplied funds '' and if I so choose, they can set something up to have the funds applied on the next payment ( note : having extra funds applied to their next bill is not the default action, their default action is to hold the money in " unapplied funds '' ) Page 10 : ditech is made aware that the promised credit was not applied and of my plans to file a complaint with the CFPB Page 11 : ditech brings up 2 separate charges " principal '' and " corporate advance '' ... both charges were never mentioned in the 2 month conversation about fees and charges ... 1 charge apparently from XX/XX/XXXX was never mentioned in the past 3 years.

Company public response: Company believes the complaint is the result of a misunderstanding
Company response to consumer: Closed with explanation