Consumer complaint received 2016-05-22
Company: PHH Mortgage Services Corporation
State: CA
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Loan servicing, payments, escrow account

Complaint:
My name is XXXX XXXX XXXX and my mortgage company has recently changed from XXXX XXXX XXXX to PHH Mortgage as of XXXX 2016. I received a mail notification with direct debit payment set-up information early XXXX. I submitted direct debit payment request with a void check from XXXX on XXXX XXXX 2016 and received a confirmation from PHH direct debit solution on XXXX XXXX, 2016 that the payment ( normal monthly payment plus a additional {$500.00} principle ) will be drawn on XX/XX/2016. However, the payment was not drawn on XXXX. XXXX and I was not notified until XXXX. XXXX via mail. Without notification, PHH has already filed a report to the credit bureau which significantly impacted my credit score. I called PHH on XXXX. XXXX and made a payment by phone directly which I was advised the payment went through successfully. I followed up on XXXX XXXX and was notified the payment got rejected for " incorrect account # ''. I was not notified proactively by PHH but had to constantly follow up on the status. I was informed to either submit a payment online or physical check. I did both submission with 1 month payment each, as payment may not go through as expected and to prevent further delay due to PHH systematic errors. The online payment went through though I had to pay a service fee yet the amount of the physical check was not drawn from my account for XXXX days. I called on XXXX XXXX and found out the check was " rejected '' due to the loan was not current. Furthermore I was advised by the collection department that a " foreclosure statement '' has been issued due to the account has over 3 months overdue. I questioned the amount that I submitted online was taken.from my XXXX XXXX account on XXXX XXXX ( submission date XXXX XXXX ). The clerk ( named XXXX ) advised nothing was shown on their system hence I should process phone payment immediately to bring the account to current. I just mailed out another check on XXXX XXXX for 2 months payment of {$2800.00}. In order to prevent overdraft, I had to cancel the check from XXXX XXXX the same day, which cost another {$30.00} fee. I advised the XXXX the account was not working when I attempted to make the payment in XXXX. XXXX advised me the payment should be taken within 24 hours and he will give me a call on XXXX XXXX. XXXX did not give me a call on the XXXX and the payment was not drawn. I called again on XXXX XXXX and finally the " {$2800.00} with {$7.00} service fee '' was pulled from the " incorrect account # '' XXXX XXXX. 

I am totally frustrated with this newly transferred mortgage company PHH. I never had an issue with the previous mortgage companies for the past 2 years since I started the loan process. My credit dropped from over XXXX to XXXX overnight and I was unaware of the issue. I tried to make XXXX payments between XXXX. XXXX to XXXX XXXX, yet XXXX of them were not successful. I emailed PHH for over 50 emails asking for updates but I was not informed in a timely manner. I called PHH and followed up on payment status as the direct debit payment were setup supposedly on XXXX XXXX and re-activated on XXXX XXXX with un-notified cancellation on XXXX. XXXX and XXXX XXXX.

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