Consumer complaint received 2015-07-30
Company: PHH Mortgage Services Corporation
State: AL
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Loan servicing, payments, escrow account

Complaint:
At the XXXX of this year I started paying my mortgage bywkly payments of {$500.00} so that my payment of {$860.00} would be paid prior to the month it was due and the extra amount could either roll over to be credited off the next month or applied to the principle. In XXXX I started getting phone calls from my mtg stating I was pass due and that I only sent a partial pmt, I would explain that the {$500.00} I sent was for the XXXX payment and before XXXX XXXX another {$500.00} would be sent, I was told they were unable to except partial pmts and they would hold this in a suspense account until I paid the amount in full. Every month they would apply just {$500.00} totally to the principle and hold the other {$500.00} in their " suspense '' account and say I was behind. I know this is hard to explain but basically I was trying to pay before the payment was due and trying to pay extra. After six months of every month getting phone calls and me trying to explain the money was there it was just misapplied I decided last month to call and document on record I would be sending the {$360.00} that would be just for the XXXX XXXX payment and the {$500.00} that was in the " suspense '' account should be placed with this amount to cover the XXXX payment and I would no longer try to pay biwkly payments ( to try and save me money ) I sent in the {$360.00} with a copy of the email I had received stating the error would be corrected and the {$500.00} would be applied and the account would not so delinquent and no late fee would be charged, so far I have sent XXXX emails and have XXXX phone calls this month stating I sent a partial payment of {$360.00} and this amount has been placed in a " suspense '' account and would not be applied to my account until I sent the remaining amount, when I ask about the {$500.00} I was told it was removed from the " suspense '' account and applied directly to the principle on my account. I have called and emailed to try and get this matter corrected and I am told the same story every time, We do not except partial payments on accounts, when I try to explain the whole story AGAIN I am told they will check into it and get back with me within 24, 48, 72 hrs. I am so frustrated with their system and feel like it is costing me MORE interest on my loan due to the error they have made. I was contacted last night and explained the story to them again and was told the same thing ( that a correction would be made and any adjustments would be applied to the account ). Then I get a phone call this morning asking me the same thing " XXXX XXXX your account is showing due for XXXX you have a suspense balance in the amount of {$360.00} the total amount of your monthly mtg is {$860.00} therefore an additional {$500.00} is required to complete your payment can you take care of that today ''? AGAIN I tried to explain my payment has been made and if someone would research this they would see that and again I was told " yes I see the error and will submit a correction to be made this process will take 24, 48 to 72hrs '' I plan to NEVER try and pay ahead again but I am coming up due on the XXXX payment I plan to send in the amount of {$860.00} but I am so afraid that again it will be misapplied. What should I do? Please help me. Thank you

Company response to consumer: Closed with explanation