Consumer complaint received 2017-06-13
Company: SELECT PORTFOLIO SERVICING, INC.
State: CO
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
My loan was transfe rred to SPS i n  XX/XX/XXXX  Since that time I have had continued difficulties in making payments which have caused significant time and money to correct : Account transferred on   XX/XX/XXXX   my automatic payment to previous servicer was canceled/never transferred to the new service. I learned of this in  XX/XX/XXXX  when my account was flagged as delinquent. I contacted a customer service agent and was instructed on how to bring the account current, and subsequently set up automatic  payment. The automatic payment did not activate in  XX/XX/XXXX  because the agent I spoke with in  XX/XX/XXXX  quoted the wrong amount, so the account was never brought current.   <P/> I   brought account current in  XX/XX/XXXX  and set up au
tomatic payment. Payment processed normally through  XX/XX/XXXX . In  XX/XX/XXXX , I received notice that I had been improperly quoted an interest rate increase in  XX/XX/XXXX , and my payment was going to be reduced going forward. This notice contained no information as to how the overpayment by me would be processed or handled. <P/>
In  XX/XX/XXXX  I also received a notice of an escrow shortage, which appears to have resulted from the servicing transfer, and no SPS agent has sufficiently explained the issue.    <P/> A dditionally, in XX/XX/XXXX  I received notice that my account was more than 2 months past due and my automatic payment wo uld not be processed.  <P/> I contacted an agent in   XX/XX/XXXX   to inquire about the most recent issue. Over the course of a call lasting over  1 hour, the agent determined that my account had been mo dified internally to reflect the changed principal and interest as a result of the mis-quoted interest rate. The agent also informed me that my overpayment had been held b y SPS. They also informed me that my automatic payment was canceled as a result of the internal account modification by SPS.   <P/> At no time have I been notified that my overpayment was held by SPS or how I could receive it in fact, I had never been notified of a specific amount of overpayment only the rate change.  <P/>  My chief complaints are : 1. Gross incompetence of the transfer of servicing which occurred on precisely the  XX/XX/XXXX of the month, which is the date that the majority of people make their payments this leads people to lose track of who has their payments and whether or not they have been   processed. In my case, I had to make a payment that was twice the normal monthly payment in  XX/XX/XXXX to SPS as I thought my  XXXX  payment had processed through my   previous servicer.
2    . Gross incompetence of the SPS customer service staff, who have mis-quoted required payments which resulted in the disabling of my automatic payment this led to a second instance in which I had to make twice the normal monthly payment in order to bring the account current.
3. Gross incompetence of the SPS internal systems which allowed excess interest to tbe charged in effect stealing money form me every month.
4. Gross incompetence of the SPS internal systems which failed to notify me that SPS had held my funds from overpayment and how I could obtain them.
5. Gross incompetence of the SPS internal systems which, now for a 3rd time in less than 1 year, have canceled my automatic payment, due to internal actions at SPS.    <P/> 
Had I not been vigilant in my follow up regarding the incorrect interest, SPS would have illegally held my overpayment.
Had I not been vigilant in my follow up of the canceled automatic withdrawal, I would have faced late payment penalties.
I have suffered loss of income due to excess time spent sorting out the internal SPS is  sues that I have suffered from.   I have suffered financial hardship due to payments not being processed or transferred as I had arranged with SPS internal systems, forcing me to make double payments to bring the account current.  <P/> I have had multiple homes and mortgages over the past 20 years,   all of which have been transferred multiple times between services never have I experienced such gross incompetence in any of those instances.
<P/>
Based on my limited experience with SPS, I feel they represent a danger to the public consumer and should be thoroughly investigated to determine if the types of improprieties I have experienced have affecte  d other consumers.

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