Consumer complaint received 2019-02-05
Company: Civic Financial Services, Inc.
State: CA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
A mortgage servicing company XXXX XXXX, Address is XXXX XXXX La XXXX XXXX XXXX XXXX, XXXX along with a XXXX licensed finance lender Civic Financial Services, LLC, XXXX XXXX XXXX XXXX, XXXX XXXX XXXX XXXX in collusion together overcharged us the consumer {$31000.00} the attempted to disguise as default interest deferred. 
For months we disputed the charges and they failed to correct or remove them. 
Their scheme was to bill it this as default interest deferred despite us paying up the monthly payments and two extension fees of over {$14000.00}. 

in what we see is clearly an attempt via predatory lending and unfair business practices to strip homeowners of equity theyve built up in their properties or cause them to lose their properties. Obviously, we dont know how many victims theyve dont this to. We believe based on our experience dealing with them this practice by Civic Financial is a reflection of a bigger problem thats likely built into their business model and either flat out illegal or predatory and unethical practices violating consumers and lending laws and usury laws. and is most likely a reflection of a more widespread problem in what they are doing. Id bet this can be a goldmine for an attorney willing to look into this or do a class action suit. 

Despite the States strict usury laws this company seems to be claiming they can charge an interest rate of 17 % disguised as default rate even after they accepted our note payments along with plus two separate loan extension fees that brought the account current. The confusion began after our refinance did not close as promised which Civic knew they entire time we had been working on.

We paid Civic extension fees twice totaling over {$14000.00} and on top of that XXXX XXXX of XXXX along with XXXX XXXX representing XXXX servicing charged another {$31000.00} theyre wrongfully billing as default interest deferred. They went so far as to demand this amount at close of our escrow and took it from our proceeds. 

On the phone with the banks representative XXXX XXXX and XXXX XXXX both assured me when I was making the {$14000.00} payment bringing the account current they were stopping and removing the default charges based on the payment and extension fees. 

We highly suspect the Predatory practices at the very least, and usury and other breaches and unfair business practices or fraudulently attempting to strip us of our equity because theyre the only ones who known all along we had a rehab holdback amount close to {$50000.00} thatd be due to us that they were going to have to return at close of escrow to us they were attempting this scheme as a way not to return what was due to us. 
Its bad enough that we paid interest on that forty-seven thousand and never used it. 

Weve attempted to resolve by emailing them plus asking on the phone more than once. 
The payoff statement they presented at the close of our refinance showed {$31000.00} they demanded labeled as Default Interest Deferred. They later revised that down to {$20000.00} after our mortgage broker and escrow raised questions concerning the amount, validity and legality of their high " default interest '' charges. We suspect they reduced the amount by {$10000.00} hoping to placate us. Were not the go-away type on {$20000.00}! 
Especially when weve already paid them over {$130000.00} in interest and fees on an 8.5 % loan we kept for just over 18 months. and theyre trying to steal another {$20000.00} on top of it! How would you feel? 

In addition to reaching out to regulatory agencies were looking for an attorney If you can provide someone with experience suing mortgage companies and whos even willing to sue this as a class action lawsuit that would be helpful. I would bet money based on our experience dealing with these two businesses the practice by Civic Financial is a reflection of a more systemic or systematic issues and a business model of predatory and unethical practices thats even more widespread problem in their organization and the way theyre doing business. 

Again, when we have already paid them over {$130000.00} in interest and fees on an 8.5 % loan, we kept for just over 18 months Meanwhile we need the help of your agency since you have oversight or regulatory powers over their lending business to have them return our {$20000.00}, they overcharged us at COE plus interest, costs, penalties and damages to make sure these rich XXXX pay for stealing from working class people using their clever financial schemes. 

Our loan was for close to {$700.00} XXXX dollars and were one of the many clients I imagine they do this to every day. 
Clearly these are really bad people the world would be better without. If they were in the right, how come magically {$10000.00} was taken off or went away? 

I suspect, these people are violating a ) California UCL, b ) Business Practices, c ) California usury law, d ) Regulation Z and e ) probably Dodd-Frank.

Company response to consumer: Untimely response