Consumer complaint received 2019-12-06
Company: Ocwen Financial Corporation
State: IL
Product: Mortgage
Sub-product: VA mortgage
Issue: Incorrect information on your report
Sub-issue: Account status incorrect

Complaint:
This complaint is due to the negative effects on my credit rating of PHH Mortgage showing my XX/XX/XXXX payment as late. The payment was only late because PHH failed to correct their system in a timely manner. 

I am a XXXX veteran with a XXXX XXXX XXXX XXXX living in XXXX XXXX Illinois. Although the rating was effective in XX/XX/XXXX, it was not formalized by VA until XX/XX/XXXX. I received a letter from VA XX/XX/XXXX, showing the new rating and effective date. That same day, I received a letter from the XXXX County Assessors office showing that I was no longer responsible for property taxes. 

My escrow payment with PHH was solely for property taxes I pay my insurance separately. 

I called PHH customer service and was told XX/XX/XXXX to fax a copy of the tax exempt status letter, which I did, and for which I have receipt confirmation. 
On XX/XX/XXXX, I called PHHs tax professional line and spoke with agent XXXX. I was told PHH had the letter and it was in process. Unfortunately, according to the agent, the process would take until XX/XX/XXXX, so I needed to pay the escrow for the XX/XX/XXXX payment, but it would be refunded. I did so. 

I called XX/XX/XXXX, and spoke with agent XXXX in the tax department. She told me she was requesting escrow removal and it would take five days. Apparently it hadnt been in process after all. 

On XX/XX/XXXX, I spoke with agent XXXX. Despite the fact she is in PHHs tax professional phone queue, she obviously knows nothing about American taxes. She insisted that PHH had already paid my XXXX taxes in XXXX and XXXX. When I tried to explain that, in fact, PHH had paid my XXXX taxes and that I was calling about the XXXX taxes which would be paid in XXXX, she repeated that the XXXX taxes were already paid. 

I asked for a supervisor after being on hold, I was told the supervisor was not available. 

Since this was totally unacceptable, I demanded to speak to a supervisor, even if it wasnt her direct supervisor. XXXX came on the line and told me that there was nothing he could do as the processing was done by another office and NOW SHOWED A DUE DATE OF XX/XX/XXXX! 

I told XXXX I would not pay escrow for the XXXX payment, but would gladly make the principle and interest payment on time. Unfortunately, PHHs online payment function does not allow me to change the payment amount, and I refused to allow them to continue to draw the escrow payments from my bank account, as they had already proven themselves either incompetent or thieves. 

To add insult to injury, they then notified me they couldnt remove the escrow payment because the payment was past due!! 

After telling me the correction would be made XX/XX/XXXX ( which would have given me time to make the payment within the 30 day window ), I received email from PHH on XX/XX/XXXX asking for a copy of the tax exempt status letter which I had sent them in XXXX, and which they acknowledged having multiple times after. I immediately re-sent the letter. 

Through many contacts by phone and email through XXXX, I continued to re-iterate I would pay the principal and interest if they would allow it. Not only did they not make the changes, their site was down completely from XX/XX/XXXX through XX/XX/XXXX, making it impossible to make the payment before the XXXX day, even if I was willing to pay the escrow. They had changed their website and the old website address did not work. They made no effort to notify me of this new portal address until I questioned them why I couldnt reach my account online. 
Throughout this process, I repeatedly told them I wanted to make the payment, but their system and lack of correction was preventing it. 

Finally, on XX/XX/XXXX, they notified me by email that they had removed the escrow from my payment, but that it might take time for the correction to be made on the web site. 

The account was updated online in a couple of days, and I made the XXXX payment XXXX. Their system would not allow me to make the XXXX payment until they processed the XXXX payment. I made the XXXX payment XXXX. I made the XXXX payment on time. 

Last but not least, I found it very telling that when I was working with the XXXX County Assessors office, they asked me which mortgage company I had. Their reaction when I said PHH? Oh, man, they are so hard to work with we hear from vets all the time what a hard time they give you. A small county tax office staff knows how difficult PHH is to work with. Think about how XXXX  that is. 

PHHs action in reporting me as late has caused my credit rating with XXXX  and XXXX  to fall by more than 60 points each. I consider their actions as consumer fraud, as they purposely did not take timely actions as requested, and repeatedly stated the corrections would be made when they were not made. 

I have copies of all emails and correspondence as well as notes from every call which I will provide as needed.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation