Consumer complaint received 2022-01-10
Company: SELECT PORTFOLIO SERVICING, INC.
State: WA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
On XXXX XX/XX/XXXX notice came from XXXX XXXX that the following loans would be transferred to Select Portfolio Servicing ( SPS ), Inc. for servicing : # XXXX, # XXXX, # XXXX, # XXXX. No statements were received from SPS. Statements for these 4 loans were received from XXXXXXXX XXXX along with statements for the other 5 loans remaining with XXXX for servicing. I sent a check # XXXX, XXXX XXXX XXXX for {$4900.00} to XXXX XXXX  as full payment for all 9 loans on XXXX XX/XX/XXXX. The check cleared my bank on XXXX XX/XX/XXXX. 

Unbeknownst to me, XXXX sent the entire amount of {$4900.00} to SPS when only {$1900.00} was due for the 4 loans they were servicing with the remainder of {$3000.00} due to XXXX for the 5 loans they continued to service. Weeks of phone calls seemed to resolve nothing. In the mean time XXXX XXXX claimed I had missed the XXXX XXXX payment and dinged my credit report with a 30 day late notation ( which they later withdrew ). 

Eventually several conference calls between XXXX XXXX, SPS and myself attempted to resolve the situation. It was agreed that SPS would send me a refund of the overage they received in the amount of {$3000.00} from XXXXXXXX XXXX and thus credited me for the payment of {$1900.00} that was due on XXXX XX/XX/XXXX which they retained from the original XXXX payment to them of {$4900.00}. XXXX agreed to wait until I had received the {$3000.00} overage payment from SPS before I sent it to them for the XX/XX/XXXX payment. 

I made the XX/XX/XXXX payment to XXXX XXXX on XXXX XX/XX/XXXX, check # XXXX for {$3000.00} which cleared my bank on XXXX XX/XX/XXXX. I made the XX/XX/XXXX payment to SPS on XXXX XX/XX/XXXX, check # XXXX for {$1900.00} which cleared my bank on XXXX XX/XX/XXXX. Upon receiving the SPS check for {$3000.00} on XXXX XX/XX/XXXX, I deposited it in my bank on XXXX XX/XX/XXXX and concurrently wrote a check # XXXX to XXXXXXXX XXXX  in the amount of {$3000.00} which was the payment due for XX/XX/XXXX. That check cleared my bank on XXXX XX/XX/XXXX. Thereafter my accounts with XXXXXXXX XXXX  were back to normal and should have been with SPS. 

On XXXX XX/XX/XXXX I sent check # XXXX in the amount of {$1900.00} for the XX/XX/XXXX payment to SPS. I received a call from SPS on XXXX XXXX that they had not received my check and SPS asked to do bank draws for each of the 4 loans over the phone to avoid potential late fees. I agreed and we went through the laborious process to accomplish bank draws for the following loans : XXXX XX/XX/XXXX : XXXX # XXXX XXXX XX/XX/XXXX : XXXX # XXXX XXXX XX/XX/XXXX : XXXX # XXXX The customer service agent also submitted a bank draw in the amount of {$540.00} for loan # XXXX but unbeknownst to me apparently mis-sent the routing or account number and the bank draft was rejected. 

The following day on XXXX XX/XX/XXXX I checked my bank statement and found that the above three bank drafts had gone through but was surprised to learn that my check # XXXX for {$1900.00} had also cleared on XXXX XX/XX/XXXX! Essentially I had over paid by twice on the above three loans as well as having paid the amount due on the 4th loan with check # XXXX for which a bank draft did not occur. 

I have tried to resolve this issue since XXXX XX/XX/XXXX to date with no results. I have spent over 40 hours and spoken to 30+ people all of whom say they are going to straighten the account out but to no avail. Heres the accounting since XXXX to bring it up to date. 

On XXXX XX/XX/XXXX I sent SPS check # XXXX for {$1900.00} for the XX/XX/XXXX payment. It cleared my bank on XXXX XX/XX/XXXX. 

On XXXX XX/XX/XXXX I sent SPS check # XXXX for {$1900.00} for XX/XX/XXXX payment. I cleared my bank on XXXX XX/XX/XXXX. 

It was during this period that I spoke with SPS Escalation Department ( about the 6th time ) about the state of these accounts. They agreed that I had over paid for XX/XX/XXXX and that the easiest way to bring the account even was to only pay {$540.00} for loan # XXXX for the month of XX/XX/XXXX. I agreed to do so. 

On XXXX XX/XX/XXXX I sent SPS check # XXXX for {$540.00} for loan # XXXX for the partial payment due XX/XX/XXXX. It cleared my bank of XXXX XX/XX/XXXX. 

On XXXX XX/XX/XXXX, at the suggestion of SPS customer service I sent out four separate checks, one for each individual loan as follows : Check # XXXX : XXXX # XXXX Check # XXXX : XXXX # XXXX Check # XXXX : XXXX # XXXX Check # XXXX : XXXX # XXXX All these checks cleared my bank on XXXX XX/XX/XXXX. 

On XXXX XX/XX/XXXX I sent SPS check # XXXX for {$1900.00} that was due for XX/XX/XXXX. The checks has not yet cleared my bank. 

In XXXX and XXXX I receive loan statements that claimed I was a full month behind on all my loans and the amounts due were double the normal payments with late charges added. Then today XXXX XX/XX/XXXX I started receiving pre-foreclosure notices for all four properties. 

In 3 conversations with SPS customer service their agents stated that payments had been made but misapplied or were in the status of " unapplied payments ''. SPS actions have left accountability of these loans in question and created a hardship for me since I am in the process of refinancing these four loans with XXXXXXXX XXXX, in part to get them away from SPS. I have no expectation that any payoff figures that SPS provides to XXXX XXXX  will be accurate. SPS intransigence could conceivably derail my attempt to close these refinancings and potentially damage my credit.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation