Consumer complaint received 2016-05-18
Company: Specialized Loan Servicing Holdings LLC
State: NY
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Loan servicing, payments, escrow account

Complaint:
Complaint : Specialized Loan Servicing ( SLS ), LLC improperly credited funds for payments received to my loan account In XXXX XXXX, I requested and received a payoff notice from SLS dated XXXX/XXXX/XXXX ( attached ). The statement reflected a payoff amount of {$33000.00} due by XXXX/XXXX/XXXX. 

On XXXX/XXXX/XXXX, SLS had received funds in the amount of {$33000.00} in three ( 3 ) separate installments ( see XXXX/XXXX/XXXX and XXXX/XXXX/XXXX statements attached ) : {$15000.00} received by SLS on XXXX/XXXX/XXXX {$15000.00} received by SLS on XXXX/XXXX/XXXX {$3500.00} received by SLS on XXXX/XXXX/XXXX In addition, my regular monthly payment of {$280.00} due on XXXX/XXXX/XXXX was paid on XXXX/XXXX/XXXX : {$300.00} received by SLS on XXXX/XXXX/XXXX ( {$280.00} ( Principal and Interest payment ) due XXXX/XXXX/XXXX plus extra {$15.00} ( voluntary Principal payment ) ) These payments were made through direct bank deposits. Although I did not send the payments by wire as directed in the loan payoff documentation, SLS received payments from me in the amount of {$33000.00} by XXXX/XXXX/XXXX, way ahead of the XXXX/XXXX/XXXX payoff expiration period, giving ample time for the funds to clear in order to satisfy my pay off amount of {$33000.00}. 

Unfortunately, I received a statement dated XXXX/XXXX/XXXX ( attached ) indicating an outstanding balance of {$89.00} due on XXXX/XXXX/XXXX. Although SLS received the full payoff amount on XXXX/XXXX/XXXX, I was charged interest of {$220.00} on XXXX/XXXX/XXXX and {$24.00} on XXXX/XXXX/XXXX. I would like to understand the breakdown of these interest charges : 1. What was the outstanding principal balance used to calculate the {$220.00} interest charged on XXXX/XXXX/XXXX 2. Why was I charged interest on XXXX/XXXX/XXXX if interest for the loan was paid up to XXXX/XXXX/XXXX ( see XXXX/XXXX/XXXX and XXXX/XXXX/XXXX statements attached )? 
3. Why is my payment due date extending all the way out to XXXX/XXXX/XXXX when I satisfied the payoff amount on XXXX/XXXX/XXXX? 

On XXXX XXXX, XXXX, I called SLS to inquire why I still had an outstanding balance after satisfying the payoff amount back in XXXX XXXX. The representative understood my concerns and opened a ticket to address the issue. She instructed me to check my account by Wednesday XXXX XXXX, XXXX. I checked my account on Thursday XXXX XXXX, XXXX and no changes were reflected. 

I called SLS again on Friday XXXX XXXX, XXXX at XXXX am and was transferred to an Executive Service staff member who identified himself as XXXX. 

XXXX indicated that since the payments had come in separate installments, SLS had charged me forward interest for the following month. 
He suggested that if I did not like the way SLS had handled my funds, he could go ahead and reverse the funds right back to me! 
He offered to send me a new payoff statement reflecting my outstanding balance and instructed that I send the final payment via wire. 

This was not my idea of a resolution. I mentioned that since I was not satisfied with his explanation, I was going to seek the advice of an attorney before deciding whether to proceed with requesting another payoff notice from SLS. SLS 's practice of forward charging interest did not seem fair or clean to me. 

Although I did not share attorney information with SLS I received correspondence in the mail from SLS dated XXXX/XXXX/XXXX ( attached ) indicating they had sent communication to my attorney requesting confirmation of their representation. I am not sure which attorney SLS is communicating with since I never provided attorney information to them and never indicated that I was going to direct an attorney their way. 

It appears to me that SLS is engaging in unfair practices that work against me the customer, blocking me from completing my loan payoff, and is now attempting to give me the runaround with this bogus attorney correspondence. 

Your intervention in the resolution of this matter is requested, as I have been unsuccessful in motivating SLS to address this issue of adequately and fairly crediting payments to my account.

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