Consumer complaint received 2023-10-26
Company: Specialized Loan Servicing Holdings LLC
State: CA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process
Sub-issue: Fees charged

Complaint:
Hello, Specialized Loan Service Mortgages ( SLS Mortgage ) sent me a check for {$3200.00} along with a letter stating that this payment to me is due to my mortgage account being overpaid when I paid it off. The document that came with the check clearly states my full name of XXXX XXXX XXXX, it also states my entire loan account # XXXX, and because of these facts I deposited the check in good faith into my checking account. The Check cleared with my bank and the funds were in my account for a full 5 days, during this time I paid bills, and transferred money out to other accounts. Last night on XX/XX/2023 the issuer of the check, Specialized Loan Servicing performed a returned check/charge back for the full amount of {$3200.00}. This immediately sent my account into - {$2800.00}, and immediately induced a returned check fee of {$25.00}. I will be charged a negative account balance fee, and I would have incurred a large amount of overdraft fees due to scheduled payments if I had not immediately transferred money from another account to this one. 

I spoke with my bank XXXX XXXX Police XXXX XXXX XXXX of which they confirmed SLS Mortages initiated the returned check/charge back, I then called SLS Mortgages and spoke with two different customer service reps who informed me that they didn't know why they initiated a charge back. The last rep I spoke with earlier today around XXXX AM PST told me they would have a supervisor call me back, at approx. XXXXXXXX XXXX  PST a supervisor called me from the phone number XXXX. This supervisor confirmed that a check in the amount of {$3200.00} was indeed credited to my already paid off mortgage account with them, and that a check for that amount was mailed to me on XX/XX/2023. As stated earlier, I also received a letter stating that the check was for XXXX XXXX XXXX, and for my XXXX # XXXX, I never received any documentation stating that this check was going to be charge backed/returned. The Supervisor then stated that this check was sent to me in error, and that is why they initiated a charge back on the amount. 

SLS mortgage sent me a check that was stated to be for my full name of XXXX XXXX XXXX, and specifically for my loan # XXXX, and was because I overpaid during the pay-off of my account. I had every reason to believe this check was for me, and because of that I deposited it and spent the funds. When SLS suddenly did a charge back on the check it caused my account to go into a negative of nearly {$3000.00}, incur a charge back fee, negative account fee, and would have incurred fees for overdraft.

SLS sent me a check in error, and XXXX XXXX XXXX to charge me the charge back fee, and has refused to resolve this issue even though I have reached out to several of their reps and to a supervisor. They have stated they have no time frame for when I will be reimbursed for the fees they caused me, nor do they care that I had to pull {$3000.00} from another account that was never intended to be drawn down suddenly on the night of XX/XX/2023. 

SLS needs to be held accountable for the financial damage they have inflicted upon me, and to make things right.

, and then you initiated a stop payment on it. This caused my bank to first impose a {$25.00} stop payment fee on me, then you dropped my balance several XXXX dollars into the negatives, and finally you prevented any payments that were supposed to go through from actually going through. I spoke with XXXX of your customer service reps this morning at approx XXXX XXXX, I called from the phone number XXXX, and I was told that you had sent me another check this weekend for the same amount. 

I want to make a few points very clear of which the first is that if you do not resolve this situation immediately I will be filing a ticket with the CFPB regarding what you did. I have the letter you sent me stating the check is money you owed me for over 2-3 years, and was due to me overpaying during the pay-off of the mortgage, and I have the check itself which shows no indication that it was not a live check. I have attached to this email a copy of my bank statement in PDF format, showing the charges you induced, and the negative balance you put me in. I had to immediately draw {$3000.00} from another account to cover the negative balance you caused, you did not warn me or send any sort of TIMELY notification you were initiating a stop payment on the check you sent me, and legally owed me. 

Finally, I have not received any additional checks to pay me for the {$3200.00} you owe me.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation