Consumer complaint received 2022-10-21
Company: Democracy Capital Corporation
State: WI
Product: Debt collection
Sub-product: Mortgage debt
Issue: False statements or representation
Sub-issue: Attempted to collect wrong amount

Complaint:
I took out a XXXX XXXX loan with The XXXX Bank which was assigned to XXXX Bank which was assigned to XXXX XXXX, on my property at XXXX XXXX XXXX, XXXX in the XXXX IL, several years ago. In XXXX I went into default on this loan. In XXXX of XXXX I entered into a XXXX XXXX with XXXX XXXX, agreeing to make payments of {$150.00} per month at a reduced interest rate of 6.5 %. The amount owed on the loan at that time was {$14000.00} consisting of principal, interest and fees, however after legal fees the amount of the agreement was {$19000.00}. This agreement was/is being handled by XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX Mi XXXX. I have been corresponding with XXXX XXXX XXXX. My complaint is that I believe XXXX XXXX has been charging me 6.5 % interest on balances in which they should not be. ( capitalizing ) In my opinion, the only amount that 6.5 % interest should be charged on is the principal balance of {$10000.00}. They should not be charging me interest on the defaulted interest balance, late charges, collection fees nor their attorney fees. In my opinion, my payments should first be applied to current interest, then the loan balance and then all other balances. I have asked XXXX XXXX to research this matter XXXX times. Each time, I receive a short response with incorrect information or not answering all of my questions. Because there was a lien on my property for this loan, I believe I should have received a statement of interest paid each year. I did not. Why are they not required to sent me XXXX? I also believe that I should be notified when there is an address change regarding where I am to send my monthly payments. I was not. I did receive a payment history a couple of times after I made a written request and it is the payment history that shows the beginning balance of over {$19000.00} and very small amounts being deducted from the principal with the majority of the payment going to interest. XXXX XXXX suggested that I make additional payments to principal as a resolution. I feel that after making on time payment for the past XXXX years, my balance should not be almost as much as when this agreement began. After writing XXXX XXXX in XXXX of this year, and requesting a payoff statement for the third time, I received a response informing me that I agreed to pay interest of 6.5 % on the balance of {$19000.00} and that this is not a typical amortizing mortgae loan, like it was originally. However, as a consumer, I was not aware and never told that by making this agreement it would no longer be considered a regular " mortgage loan '' with amortized payments. As far as I knew, I was just modifying the loan as I had with the first mortgage. I feel that Democracy Capital and XXXX XXXX misrepresented the agreement by not providing me with information so that I was aware of the detailed terms of the agreement. I feel like they took advantage of me as a consumer, especially on a loan that was in XXXX position behind a modified XXXX mortgage XXXX. This property tied to this loan has been sold and the loan was paid off on XX/XX/XXXX. To date, I have not received anything from XXXX XXXX and/or XXXX XXXX confirming thaXXXX that the agreement has been paid and whether or not there was any over payment and when I would receive a release of XXXX.

Company response to consumer: Closed with explanation