Consumer complaint received 2020-07-23
Company: SERVICEMAC, LLC
State: PA
Product: Mortgage
Sub-product: VA mortgage
Issue: Trouble during payment process

Complaint:
In XXXX of XXXX my loan was transferred to Service Mac Mortgage Servicing company. My prior servicing company was XXXX. I have since the inception of my loan been paying biweekly payments. I contacted the company to ensure that they were aware that I was making biweekly payments. They said no problem the payments would be held in a pending status until the second payment came through and then applied to the full payment. In XXXX I received a collection call from them stating that my account was delinquent. This was not true, I had been paying ever two weeks as an auto debit from my personal online banking account. Service Mac had been applying my payments incorrectly toward my principle. They apologized for their mistake. I asked that the payment be reversed and applied correctly toward payment which would bring my account back to its expected status where i was 3 weeks ahead in payment. INSTEAD OF APPLYING THE PAYMENT CORRECTLY THEY SENT ME A REFUND OF THE PAYMENT. 
I called them again XXXX XXXX discussed with a customer service representative all of the errors that they had made. She apologized, refunded the late payment fees, of course I had to resend the money that they had returned to me. She assured me that she would make note on my account that I was paying biweekly so that this would not happen again. I thought things were fixed. I have continued to make biweekly payments on XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX. I received a collection call on XX/XX/XXXX to collect my unpaid mortgage!!!!!! I have never been late on any payments during my entire credit lifetime!!! I have actually already paid jalf of my XXXX payment and should certainly be 3 weeks ahead!! SERVICE MAC AGAIN HAD BEEN INCORRECTLY APPLYING MY PAYMENTS!!!! They again had been applying my payments toward Principle! Causing my account to go into default status and charging me late payment fees! Again reviewed with a customer service representative and they again quickly could see that the error was on their part and that they had been processing my payments incorrectly!!! I was told that the payments would be reversed and applied correctly, this would bring my account to updated status. The representative told me to write in the memo that I was paying biweekly ... ... I immediately questioned this. Isnt everything with these transactions electronic? She said they have people reviewing the checks personally!! Well my payments are sent electronically and there is not way to write a memo on an electronic transfer. 

As of yesterday I have yet to hear back to them. 

This company has since the inception of my relationship with them done nothing but misapply my payments. They have demonstrated nothing short of incompetence. I get a different answer each time I speak to someone and believe that there is insufficient training and supervision of business practices and abilities. I have yet to receive response regarding corrections to my account nor refund of fees charged to me. 

I have noted prior complaints to the XXXX this is riddled with scenarios similar to mine and more ... ..Their company should be dissolved and loans held by them dispersed to companies that are capable of managing mortgage servicing responsibilities.

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