Consumer complaint received 2020-01-14
Company: Freedom Mortgage Company
State: CA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Credit monitoring or identity theft protection services
Sub-issue: Billing dispute for services

Complaint:
On XX/XX/XXXX, XXXX XXXX of XXXX XXXX XXXX faxed proof of homeowner 's insurance to Freedom Mortgage. For some reason, Freedom Mortgage took it upon themselves to issue a forced homeowner 's insurance policy on our house on XX/XX/XXXX even though proof of insurance had been provided. An escrow account of {$1400.00} was erroneously placed on our mortgage without our knowledge. On XX/XX/XXXX, Freedom Mortgage realized the mistake ; however the wrong amount ( {$1100.00} ) was refunded to the escrow account. This incorrectly left a balance of {$230.00} on our mortgage account of which we knew nothing about. This led to late fees being assessed and then to the eventual erroneous credit reporting of 30 days past due notification that showed up on both my and my mother 's credit reports on XX/XX/XXXX. We have NEVER had a late payment on our mortgage. We have paid our mortgage payment on time since XXXX! 

The forced homeowner 's insurance policy should NEVER have been placed on our house in the first place. We have had continuous homeowner 's insurance on our house since XXXX! There has NEVER been a lapse in coverage. On XX/XX/XXXX, XXXX from XXXX XXXX  XXXX emailed Freedom Mortgage proof yet again that we had CONTINUOUS homeowner 's insurance on this home in XXXX. The forced homeowner 's insurance policy led to a balance being placed on our mortgage that should have NEVER been there. This then led to late fees being assessed and then to the eventual erroneous credit reporting of 30 days past due notification on XX/XX/XXXX. Both my mom 's and my FICO scores have dropped more than 90 points since this incorrect reporting! 

My mother is the primary on this mortgage account. My mother is XXXX XXXX XXXX and still works full-time. She recently battled XXXX XXXX. My mother was so stressed out and shocked about the erroneous credit reporting that she immediately called Freedom Mortgage on XX/XX/XXXX. My mother was at work that day and spent HOURS on the phone with Freedom Mortgage. Freedom Mortgage demanded that she pay {$380.00} to clear this problem up. My mother knew that we owed them NOTHING, but she was so panicked about the erroneous credit reporting that she paid whatever amount they told her to pay. 

This is COMPLETELY unbelievable. Instead of figuring out what the problem was, Freedom Mortgage continued to make the problem worse. Of course the problem still hasn't been corrected even though my mother and I have continued to contact Freedom Mortgage on XX/XX/XXXX ; XX/XX/XXXX and XX/XX/XXXX. Freedom Mortgage issued one check on XX/XX/XXXX in the amount of {$110.00} as a refund for the fees that they incorrectly collected from my mother on XX/XX/XXXX. Freedom Mortgage has acknowledged that they incorrectly charged us {$380.00}. Okay so when will Freedom Mortgage issue the rest of the money ( {$290.00} ) that they incorrectly collected from my mother on XX/XX/XXXX? 

As the secondary on the account, I was NEVER contacted by Freedom Mortgage. Freedom Mortgage has my email address and phone number, but there was never ANY attempt to contact me regarding this matter. The first that I knew of any problems was when I got an alert from my credit reporting surveillance on XX/XX/XXXX. I find it interesting that Freedom Mortgage has no difficulty contacting the credit bureaus to erroneously mark my account delinquent, but they can't simply send me an email to let me know that there is a problem. There is NO excuse for this lack of contact on Freedom Mortgage 's part. What is the point of being a secondary, if I'm NEVER contacted? 

It is ABUNDANTLY clear that Freedom Mortgage has made MULTIPLE mistakes on our mortgage. Why are we the ones to suffer the consequences of THEIR mistakes? We need this erroneous credit reporting of 30 days past due to be IMMEDIATELY removed from our credit reports. Freedom Mortgage needs to IMMEDIATELY issue us a refund in the amount of {$290.00} for amounts that they erroneously collected from my mother on XX/XX/XXXX.

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