Consumer complaint received 2017-07-18
Company: Ditech Financial LLC
State: VA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
Ditech servicing LLC has made continuous error on my account since   XXXX   XXXX  . I have called every month and spoke with multiple parties and was told the matter would be fixed and it was and each month the problem continued The problem : my mortgage is {$880.00} per month. Every two weeks for years Ditech has been sent {$500.00} every two weeks. Their policy is they have an account called unapplied funds that partial payments when received would stay until full payment is received. However what I was noticing is that Ditech was not adhering to that practice and allowing the money intended for payment to accumulate in unapplied funds. Every month I called explained how I wanted the payment to be applied with the overage to principle and each time I called I was told the matter would be resolved and it continued for 9 months continuously. PLEASE NOTE : I record all calls with Ditech and can substantiate each call/ contact with them regarding my account and validate each time I was told the matter would be fixed.
Due to the practice of Ditech I accumulated multiple late fees erroneously with no notifications In receiving my  XXXX , the calculation was noted erroneously by my accountant and I noted a late fee I involved   XXXX   XXXX   the owner of my loan and involved them also of the practice of Ditech in  XXXX . They have been no help in attempting to resolve matters and have even absolved themselves of all responsibility for the practice of Ditech In   XXXX   XXXX   I spoke with a director and a loan process personnel and was told that due to an upgrade their system was incapable of recognizing how to address my partial payments and a reallocation of my entire loan was made. However in a review of the allocation of the funds allegedly being applied appropriately my principal balance increased instead of decreasing. I have written Ditech multiple times requesting a review and received an email from their AVP   XXXX   XXXX   stating that the allocation was correct and they will not address my concerns. In   XXXX   XXXX   I received an escrow shortage statement stating that my payments would increase because my escrow analysis was low .In calling Ditech I was first told my property taxes had increased and that contributed to the increase. This was a lie, the city treasurer confirmed my taxes remained the same. Then I was told that city had sent them my storm water bill and they would pay that on my behalf. However, I was paying my stormwater bill on my own via web bill through my bank and there were no delinquencies. This prompted an inquiry to why now would the stormwater bill be sent to the company and confirmed by the city treasurer again the practice is not to send duplicate billings to the owner and the mortgage company. the only time they would if its requested which they confirmed it was, but it was already paid by me. This prompted a complaint with the BBB and now I have received another analysis indicating that I am in NOW in a surplus and my monthly payment has decreased {$120.00}. I have ceased sending the overage amount and have complied with only sending the intended amount due for the month of {$880.00} and my funds still continue to be transferred to their unapplied funds sitting there with multiple calls and emails sent to them demanding to apply to the intended payment even with the direction indicated on the memo.
Due to this companies continued errors it has placed my account in default when in fact I have been paid ahead on my loan by one month and they have sent a collector to my home, sent multiple collection letters. I have filed a protective order against the company and a cease and desist regarding being in collections when my account is well within in compliance This company is in violation of the fair collection act because I was never in default, never have been late with payments THEIR practice of mishandling payments has caused multiple errors. I have given them 1 year to fix this and as of today, their AVP has responded after 45 days of no response that they are still working on matters. What is acceptable time frame because I think if in court I have been more than reasonable with attempting to mediate matters with them and it has been unsuccessful.

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