Consumer complaint received 2017-08-25
Company: Specialized Loan Servicing Holdings LLC
State: UT
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
Specialized Loan Servicing : Loan # XXXX, XXXX and XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, UT Our loan servicing company was transferred to Specialized Loan Servicing within the last 6 months to a year. We have consistently made our payment on time and in the exact same way each month, through our bank ( XXXX ) online bill pay, which sends a paper check. OnXX/XX/XXXX, we received a notice dated XX/XX/XXXX from Specialized Loan Servicing that our loan was delinquent. We knew that we had paid on time and had not missed any payments, so we verified with our bank, where we found proof that each mortgage payment check for {$950.00} had been cashed and received on time. We then looked at our account on the Specialized Loan Servicing website and noticed that for some reason, we were not given credit for ourXX/XX/XXXX payment, which, according to our bank 's records was cashed on XX/XX/XXXX. While we paid our XX/XX/XXXX payment on time, they applied it as if it were a late XX/XX/XXXX payment, and are now saying that our XX/XX/XXXX payment is delinquent. They are sending us delinquency notices and have added late fees to our account. I have not checked, but I assume they have also reported our payment as late to the credit reporting agencies, and damaged our credit. 

In an attempt to resolve this quickly, on XX/XX/XXXX ( the same day I received the notice ) I called the number listed on the notice to explain what happened and to send them proof that we made a payment. The person on the phone gave me an email address to send proof to, which I immediately did. She then informed me that she had opened a case and it could take until XX/XX/XXXX for them to investigate to see what happened. I asked if, in the meantime, the debt collection notices and negative credit reporting would continue, and she said yes, it would continue and that they could not stop it until they had investigated the issue. 

I then escalated the call to someone else, who said he would look to see if he could find the payment in the system. After about 20 minutes he said that he could not find it, but that they would investigate further. I asked why someone could n't just look at the email I just sent with proof, and resolve the issue, and he said that it can take up to 48 hours for the information to upload so he could n't look at it. I again asked for the company to cease all negative credit reporting and notices since this was their mistake and we did not do anything wrong, and he said " how do you know its our mistake and not yours? '' I stated that I know it was their mistake because the money was taken out of my account, and I have proof, which I had already sent to them. When I ( regrettably ) became upset, he told me he needed to get off the phone with me because he had lots of other customers in the same situation as me, which tells me that this is a common occurrence at their company. 

We feel that this issue would probably be resolved eventually without intervention, but are concerned about the time and effort their mistake is costing us to correct, and more importantly, the hit this will be to our credit, and time and effort it will take to resolve this issue with our credit companies. We do not want this drug out and our credit damaged in the process. 

To be thorough, I have attached proof of ourXX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX Mortgage payments, all of which  were paid on time and in the exact same way. 

Our ideal resolution would for Specialized loan servicing to quickly correct the account and all interest and late fee charges, and to provide a letter stating that we made our payment on time and that the negative credit reporting was due to a clerical error.

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