Consumer complaint received 2018-04-09
Company: Midwest Loan Services, Inc.
State: PA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
Midwest Loan Service handles the payments and processing of loans from a credit union that I have my loans through. 

The complaint that I am filing at this time is because my mortgage payments are due on the first of each month, when the loan was handled with the prior organization I received coupons/statements well in advance of the due date. 

I now consistently receive my statements near ( a day or two before ) on or even after the due date, and once received no statment at all. I have contacted Midwest numerous times regarding this issue. Each time they give me an answer of " well, you have a 16 day grace period to pay the bill '' .... in other words you don't get charged a late fee until the XX/XX/XXXX of the month. ( why would a mortgage company have a due date of XX/XX/XXXX, but not charge late fees until the XX/XX/XXXX?? Careful checking and you can figure it out ) I received XX/XX/XXXX statement after it was due and paid it the evening of XX/XX/XXXX ( in the XXXX. ) ( marking the XX/XX/XXXX as the morning it went out in the mail ). Mid West has added late fees to that months payment saying they did not receive it until the XX/XX/XXXX, this is very important to note because today when I called to complain to them again and while talking to XXXX, he informed me that the payment was received on the XX/XX/XXXX and that they open and process the mail the same day it is received which means ( according to his statements ) it takes at least 8 days for the mail to travel from XXXX Pa to their location. Take that into consideration when understanding I receive my statements after the due date, also consider that according to him it takes at least 8 days to transfer mail from/to each other, consider when they process/print their mail/invoices and send the statements ... 

I believe their system is set up to force people to use electronic payments ( to avoid late fees and charges ) or they benefit ( increase their profits by sending statments out after the due date and then adding late charges to the accounts because they then state they have received the payments late ). 

This should actually be considered racketeering, or criminal, I know this much if I were to do this with my business in Pa I would loose my license/ability to work/provide service and most likely be charged criminally. IT IS UNACCEPTABLE TO ALLOW A " BIG BUSINESS '' TO EXPLOIT INDIVIDUALS FOR FINANCIAL GAIN. 

I am asking that all " late '' or " past due '' charges be removed from my accounts and that from this time forward they are held to the standards of the law in such that I receive my invoice/statements 14 days prior to the DUE DATE, ( I believe that is a consumer protection law in Pa at least ). I also ask that any reports that Mid West may have made to credit reporting agencies showing late or delinquent payments be removed ( they send a statement acknowledging the error was because they sent the invoices out in such a manner that they were received by me after the due date ). 

I am also asking that an investigation be conducted of their operations, how payments are received and processed, is the mail actually received and processed the same day, or is it allowed to " sit '' on their site for a period of time, and how they print and mail invoices to their customers, what day are they printed and when are they mailed, this is critical based on their representative confirming that mail from Pa - XXXX takes at least 8 days. 

Quite simply, hold this " business '' accountable to the law and fair business practice, again if it were a smal business doing this it would be shut down and most likely criminally charged, they should be held to standards and accountable. 

On another issue regarding the same company and their handling of my loans, they continued to charge me pmi, even after numerous request were sent to them, they were asked verbally, and continued charging pmi after it should have been removed - I checked online for other consumer complaints against them and this has shown up that they have done this to others as well. I would like my account audited and to be reimbursed ( with interest according to their rates that they charge their customers ) for the monies charged after my firsrequest to have pmi removed.

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