Consumer complaint received 2016-07-11
Company: SELECT PORTFOLIO SERVICING, INC.
State: MD
Product: Debt collection
Sub-product: Mortgage
Issue: False statements or representation
Sub-issue: Attempted to collect wrong amount

Complaint:
debt collector select portfolio servicing under the control of select portfolio servicing and XXXX.debt collector XXXX XXXX and/or her daughter XXXX. OWES XXXX XXXX XXXX XXXX, XXXX and XXXX, XXXX XXXX XXXX XXXX, XXXX XXXX XXXX XXXX, XXXX XXXX XXXX XXXX XXXX. 
FTC, Subprime Mortgage Servicer Agree to Modified Settlement Agreement With Former XXXX XXXX Provides Additional Consumer Benefits For Release XXXX XXXX, XX/XX/XXXX The Federal Trade Commission today announced that it has reached an agreement with a major subprime mortgage servicer to modify certain terms of a XX/XX/XXXX court settlement, providing substantial benefits to consumers beyond those in the original settlement, including account adjustments and reimbursements or refunds of fees paid in certain circumstances. 
In XXXX XXXX, XXXX XXXX XXXX and XXXX XXXX XXXX XXXX agreed to pay XXXX to settle with the FTC and the U.S. Department of Housing and Urban Development ( HUD ), which charged them with engaging in a number of unfair, deceptive, and illegal practices in the servicing of subprime mortgage loans. The Commission distributed the XXXX as redress to affected consumers. The settlement also imposed a number of specific limitations on XXXX 's ability to charge fees and engage in certain practices when servicing mortgage loans. XX/XX/XXXX, the defendants changed their names to Select Portfolio Servicing , Inc. and SPS Holding Corp.The FTC conducted a review of Select Portfolio Servicing 's compliance with certain aspects of the XX/XX/XXXX settlement. The FTC and Select Portfolio Servicing negotiated and agreed to several modifications of the settlement. HUD has also agreed to these changes, which include : A five-year prohibition on marketing optional products, which are products or services that are not required by the consumer 's loan ( such as home warranties ). 
Refunds of optional product fees paid by consumers in certain circumstances. 
Revised limitations on charging attorney fees in a foreclosure or bankruptcy to ensure that consumers receive full disclosures, including the actual amount due if they receive an estimated fee. Select Portfolio Servicing also will conduct reconciliations after payoff or foreclosure and reimburse consumers who may have paid for services that were not actually performed. 
Refunds for consumers who may have paid foreclosure attorney fees for services that were not actually performed since XXXX XX/XX/XXXX. 
A permanent requirement that consumers be provided with monthly mortgage statements containing important information about their loans. 
A requirement that Select Portfolio Servicing revise its monthly mortgage statements based on consumer testing performed by a qualified, independent third party ( which the company has already done ). 
A requirement that Select Portfolio Servicing continue to use a qualified, independent third party to perform annual audits of its compliance with key settlement provisions until XX/XX/XXXX. The results of these audits will be subject to review by the FTC. 
Revision of specific provisions to permit Select Portfolio Servicing to engage in certain practices that were prohibited by the original settlement. For example, the modified settlement allows the company to hold or reject a payment that is more than {$25.00} short of the consumer 's monthly principal and interest payment so long as the consumer receives prompt notice of the action. The settlement continues to prohibit the company from applying such payments to fees before principal and interest

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