Consumer complaint received 2022-02-08
Company: Specialized Loan Servicing Holdings LLC
State: IL
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
At this time, I am requesting that SLS provide me a refund on the full amount : 1. 1st Installment Tax Year XXXX - {$2100.00} I previously submitted a complaint under complaint ID XXXX and it was subsequently closed by CFPB due to a reply from the company. However, the issue was NOT resolved. I opened a new complaint : XXXX, and now have new information that SLS provided me false information on receiving a refund for the property taxes they paid out of my escrow account in error. 

Specialized Loan Servicing submitted my 1st Installment XXXX tax payment to the WRONG property PIN. Due to this, I became delinquent on the 1st installment of taxes and was charged by XXXX Incorrect PIN : XXXX Correct PIN : XXXX. They also OVERPAID on the taxes I was owed SLS paid out {$2100.00} of property taxes to the incorrect PIN, Please note I am not sure how SLS is expecting me to get a refund from XXXX XXXX on another owners PIN that they INCORRECTLY paid. 

Here is the sequence of events : 1. XX/XX/XXXX- SLS paid the wrong taxes to the wrong property PIN ( listed above ) 2. XX/XX/XXXX - Taxes reported as delinquent to my lawyer during a sales transaction of the property 3. XX/XX/XXXX - Contacted SLS where they advised that the taxes were paid on the WRONG PIN and that is why they are delinquent - due to SLS 's error. SLS advised they have submitted a refund request to XXXX XXXX and they also advised that I would need to engage XXXX XXXX to receive a refund. 

4. Taxes were paid out of closing costs, including a {$100.00} penalty 5. XX/XX/XXXX - Filed 1st complaint to CFPB for the issues and lack of resolution with SLS to get a response from SLS, including a refund on the penalty paid ( {$100.00} ). 

6. XX/XX/XXXX - Received a response from SLS that DID NOT resolve the issue of the penalty I paid out of pocket. It only addressed that they 'requested ' a refund from XXXX XXXX on my behalf. 

7. XX/XX/XXXX - I contacted SLS 's Tax department and they said they couldn't do anything, they transferred me to customer service, they said they couldn't do anything and transferred me to Escrow, escrow told me that they won't do anything for me, and then they transferred me to their Executive Support Team- who said they won't do anything for me because the dispute is closed. He told me I need to write a letter and open a new dispute. I spent a total of 1.5 hours on the phone trying to get a refund for SLS 's mistake. 

8. XX/XX/XXXX After submitting a refund request to XXXX XXXX, I received a letter from XXXX XXXX stating that they can not refund me for the property PIN paid incorrectly because it is not my property. They stated the following : -Insufficient proof of payment : duplicate payment refund applications require proof of both payments. Please provide proof of both payments for the Tax Year and Installment where the duplicate payments occurred -Insufficient proof of payment : Although there was a duplicate payment of overpayment on the PIN, tax year and installment for which I have sought a refund, the XXXX XXXX Treasurers Office require proof that the payment was debited from your account. Please either provide a copy of your customer Receipt if payment was made by cash, certified check, or money order. 

XXXX. XX/XX/XXXX Contacted XXXX XXXX Treasurer via phone they advised that the refund would be given to the company/person that submitted the payment, NOT the property owner. It was previously advised to me that I would have to work with XXXX XXXX. At this point, XXXX XXXX has advised that SLS is the sole entity that can get this refund, I am unable to. 

XXXX. XX/XX/XXXX I contacted SLS again to get proof of payments as requested by XXXX XXXX above and asked they AGAIN reach out to XXXX XXXX on the refund. I advised the lady on the phone that XXXX XXXX said I would not be able to receive the refund, the remitter would need to work with XXXX XXXX since they have all the documentation and I have nothing. The lady I spoke with said that she would need to send to research which requires 5 business days and they would contact me. 

10. XX/XX/XXXX As of XX/XX/XXXX, I have received no contact from SLS regarding proof of payment. 

11. XX/XX/XXXX Spoke with XXXX at XXXX after filing complaint. XXXX advised that she would send out payment history. However XXXX since XXXX was not responsible for payment of the taxes at the time, they would not be the ones to assist. 

XXXX. XX/XX/XXXX Spoke with SLS XXXX Have already reached out to XXXX XXXX XXXX of XXXX and XXXX XXXX is processing refund to SLS. SLS advised they expect to get the refund by end of XXXX and to call back at end of XXXX. Put a note in the account so that the researcher will follow up on XXXX of XXXX. 

13. XX/XX/XXXX Spoke with tax department at SLS again. They advised XXXX XXXX refunded the property owner. I contacted XXXX XXXX and spoke to a customer service rep who said that they received the refund request from SLS, but did not get the proper documentation of payment, so they will reject it. I again contacted SLS, who changed their statement and said they sent the request to XXXX XXXX 14. XX/XX/XXXX Spoke with tax department at SLS again. They advised XXXX XXXX is in progress. Asked to speak to a supervisor and the rep hung up on me. I called back and spoke again and there have been no updates since XX/XX/XXXX. XXXX XXXX is advising me that they do not have proper documentation. The second rep I spoke to said XXXX XXXX issues the tax payment and they have to get that information from them. Spoke to escalation manager named XXXX. She said that they were escalating again. 

At this point, I am at a loss. It can not be this hard- they can clearly see they paid on the wrong property address and can view the interest charge on the correct property address. The loan paperwork has the CORRECT property address. SLS entered the incorrect property address when they did the payment. 
And now they are refusing to refund me interest payment and taxes I was charged and paid. To SLS : I understand that under Section 6 of RESPA you are required to acknowledge receipt of my request within 5 business days and take action to resolve my inquiry within 30 business days. Under state law and under the federal Real Estate Settlement Procedures Act ( RESPA ), a mortgage lender is responsible for all penalties and costs due to its failure to use the borrower 's escrow to pay the taxes on the right PIN, in full and on time. SLS misued the money that I spent when paying my taxes to XXXX XXXX. SLS is responsible for the refund of the full tax refund and the penalties I incurred for the late tax payment. 

At this time, I am requesting that SLS provide me a refund on the full amount : 1st Installment Tax Year XXXX - {$2100.00} Since SLS will provide me no documentation I have no choice but to ask them directly for the refund. I have given SLS all the correct documentation when the loan was transferred, they paid the incorrect taxes in error. This falls on SLS to correct the issue and refund both the taxes and the interest accrued to me.

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