Consumer complaint received 2020-02-10
Company: Freedom Mortgage Company
State: NJ
Product: Credit reporting, credit repair services, or other personal consumer reports
Sub-product: Credit reporting
Issue: Incorrect information on your report
Sub-issue: Account status incorrect

Complaint:
I had two loans with JG Wentworth Home Lending ( JGW ), both of which the servicing was transferred to Freedom Mortgage ( Freedom Mortgage purchased JGW 's loan portfolio ). Loan # 1 refers to the loan I have on a rental property. Loan # 2 refers to the loan I have on my personal residence. The issue I am having is in respect only to loan # 2, which I closed a refinance on in  XX/XX/XXXX. 

I would like to preface this by saying my credit scores were in the upper 700s and I have never had a late payment on any of my accounts. 

I received a letter from JGW on dated XX/XX/XXXX advising the servicing of my loan ( loan # 1 )  would be transferred on XX/XX/XXXX and that any payments after that date are to be made to Freedom Mortgage ( letter attached ). Since this letter only referred to loan # 1 ( and since I never received a servicing transfer letter for loan # 2 ), I contacted JGW on XX/XX/XXXX and inquired if I was to make payments for loan # 2 also to Freedom Mortgage. I was instructed by the Customer Service Representative ( CSR ) at JGW to make my payments for loan # 2 also to Freedom  Mortgage. I made the payment in the amount of {$310000.00} to Freedom Mortgage as instructed on XX/XX/XXXX XXXX proof of payment attached ). 

In late XXXX I received a letter from JGW dated XX/XX/XXXX advising me they had not received my payment for XX/XX/XXXX XXXX letter attached ). I contacted JGW on XX/XX/XXXX to inquire about why I received the letter and the CSR said it was in error, I didnt owe anything to JGW, and that I needed to call Freedom Mortgage to make sure the payment I made on XX/XX/XXXX was properly credited. I called Freedom Mortgage and they said the first payment that was due was for XX/XX/XXXX and that the payment I sent on XX/XX/XXXX was credited to that due date. I called JGW back to try and resolve ; I was willing and able to make the past due payment at that time, but I was told not to send a payment as they had no place to apply it. I told them I was concerned this payment would be classified late and would hit my credit report as I had not made the payment to either JGW or Freedom. I was told by the CSR that it would not hit my credit report ( and no late fees ) since this payment was captured under the provisions of RESPA. He told me to wait until things settled down in XXXX and the transition was complete ; I could then make my payment to Freedom Mortgage. 

On XX/XX/XXXX or thereabouts, I received a notice from XXXX XXXX that my credit score dropped 110 points as JGW reported my XX/XX/XXXX payment as XXXX days late. I immediately contacted JGW and spoke with a CSR ( XXXX ). She advised I contact Freedom Mortgage because I couldnt make the payment to JGW as there was no loan to apply it to. I also tried to make the payment on the JGW website, but that feature was no longer available. XXXX also confirm my discussions with JGW on both XX/XX/XXXX and XX/XX/XXXX in which I was told to pay Freedom Mortgage. She didnt know why JGW reported me to the credit bureaus since I was supposed to be covered under RESPA. 

On XX/XX/XXXX I followed up with a phone call to JGW ( spoke with XXXX ) and I explained my situation. She advised I send my supporting documentation to XXXX, which I did. She also advised I open a dispute with the credit bureaus, which I did. She didnt know why JGW reported me to the credit bureaus since I was supposed to be covered under RESPA. I followed up with CSRs XXXX and XXXX and again explained my situation. Although empathetic, they said there was nothing they could do and that I needed to wait until I heard back from XXXX. However, both said JGW shouldnt have a problem removing the erroneous entry from my credit reports since it was clear from the notes in my file that JGW instructed me to pay my XX/XX/XXXX payment to Freedom Mortgage. 

On XX/XX/XXXX I received an email from XXXX ( attached ) that my inquiry was reviewed and denied. No explanation, just that it was denied. I contact JGW again and spoke with XXXX, and then her supervisor, XXXX ( I think that was her name ). I explained my situation ( again ) in detail, but was told that the review was completed and denied and that there was nothing they could do. I was not permitted to receive any feedback or explain my situation to the individual who investigated my claim. 

This appears to be just a big misunderstanding because I had two loans with JGW which transferred at different times ( one on XX/XX/XXXX and one on XX/XX/XXXX XXXX, and I was given incorrect information by no less than two JGW CSRs. I never asked for my loans to be transferred to a new servicer and now my credit has been severely compromised as JG Wentworth will not take responsibility for the errors made on their part. I tried to resolve this issue amicably, but JGW gave me no other alternative than to file this complaint.

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