Consumer complaint received 2023-10-18
Company: Specialized Loan Servicing Holdings LLC
State: VA
Product: Mortgage
Sub-product: Home equity loan or line of credit (HELOC)
Issue: Trouble during payment process
Sub-issue: Trying to communicate with the company to fix an issue while managing or servicing your loan

Complaint:
In XX/XX/XXXX, I sought a payoff amount for my HELICO loan. Specialized Loan Servicing ( SLS ) provided a figure of {$52000.00}, which incorporated additional days of interest. I promptly transferred the specified funds on XX/XX/XXXX, in accordance with their directives to their designated lock box. SLS acknowledged this payment on the same day, resulting in an overpayment, as reflected in my account, amounting to {$470.00}. By XX/XX/XXXX, my statement indicated that there was no outstanding principal balance, a status that persisted into the XX/XX/XXXX statement. 

Subsequently, on XX/XX/XXXX, I formally reached out to SLS with a request to terminate my HELICO account. In compliance with their protocol, I furnished them with a signed letter, delivered via fax. However, upon their receipt of this closure request, SLS took the inexplicable step of nullifying the principal payment I had made on XX/XX/XXXX. Instead, they reprocessed the payment and imposed an interest of 11 % for the months of XXXX and XXXX on the previously cleared principal sum of {$51000.00}. This recalculated interest totaled {$920.00}. 

This adjustment not only meant that the company retained the aforementioned overpayment of {$470.00} but also culminated in an additional payment demand of {$450.00} for account closure. I have since paid the additional {$450.00} amount because they identified it as a requirement on my XX/XX/XXXX statement and identified it as past due. 

SLS 's rationale for this reversal remains unclear. Their justification rests on the premise that I did not initiate the account 's closure in XXXX. However, I was under no obligation to terminate the account in that month. It is my understanding that a XXXX principal balance negates the possibility of further interest charges. 

I have made four separate attempts to rectify this situation with SLS via phone. Each conversation concludes with an assurance of a follow-up investigation, yet no subsequent communication is ever initiated on their part. My subsequent calls invariably begin anew with a different representative. Furthermore, my efforts to elevate the matter to higher management have been thwarted, as I am consistently redirected to their initial point of contactthe help deskwhose personnel, I suspect, may lack a comprehensive grasp of banking and interest procedures. 

I have attached copies of my monthly statements starting in XXXX to XX/XX/XXXX for your review. The XXXX statement clearly shows the {$52000.00} payment being applied on XX/XX/XXXX. The XXXX statement clearly shows them reversing a {$51000.00} payment on XX/XX/XXXX and immediately reapplying this payment, but charging me interest for the prior two months.

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