Consumer complaint received 2024-05-21
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Payment process
Company: Fay Servicing, LLC (FL)

We purchased a home the end of XXXX, with first payment due in XXXX.   We paid that - the loan was transferred to Fay for servicing and it has been an absolute nightmare.   The email threads below don't include the ridiculous amount of time my husband and I have also spent on the phone working to resolve this issue.

We have proof of, and have shared, that every single payment has been made and NO one can seem to get our account resolved.  This past month, they withdrew a double payment - without our consent - which puts us ahead a pyemnt and our new statement shows another double payment to be pulled.

What rights do we have as a consumer?  this has been the most awful experience we have ever had in about 20 mortages that we have had.

We have no rights - and continue to be harassed, and it is completely on us to keep on it to be sure it is being resolved - you can see that no progress has been made since XXXX.   it is appalling.

We need someone to hold Fay Servicing accountable.   They should not be allowed to be in a consumer businessXXXX XXXX XXXX XXXX:
Your loan for property address XXXX was set up for servicing with Fay Servicing. Your auto payment was activated with a draft on the XXXX of each month.
 

XXXX XXXX XXXX: 
I was finally able to set up the account.
 
However, a payment still hasnt pulled.
 
The communication said it would be auto-drafted like before, so I want to confirm I do not need to do anything with the payment, as that will be sorted out?

XXXX XXXX XXXX: 
Apologies for the delay, yes that is correct, no action is needed on your end at this time. We are still working with Fay to have this issue resolved and will let you know once this has been completed. XXXX XXXX XXXX:
This has not been a smooth transition.   As you know, we have been in communication with you the entire time.  We have now received a letter from Fay stating if we are not current by the XXXX XXXX XXXX,  they will start foreclosure proceedings. 
 
We have had three payments deducted from our account since XXXX.  It does not look as if Fay knows about the XXXX payment.   The statement we received does not show our XXXX payment  therefore, our last payment withdrawn on the XXXX XXXX XXXX, doesnt show as the XXXX  payment because they applied it to a previous payment.   which we paid to the previous company.  So, we now show XXXX days late on our last payment and XXXX days overdue on our April payment.
 
With the 2 payments withdrawn last week, we are current. I just tried to call and talk to someone, but they are not open yet and I am soon heading out for appointments for today. Who do we talk to get this resolved? XXXX XXXX XXXX:  

Who do I need to talk to that can respond and resolve?   I have major concerns, considering the letter we received threatening foreclosure.   Please advise.

_____
We are very sorry about your experience with this transfer. We have been working closely with Fay for the last month on this issue. It should have been solved much sooner, but only today we received a confirmation that all reconciliations were done and the correct payments should be posted this week.
 
We are making sure your loan performance will not be affected. If you notice anything is wrong, please let us know.
 
Thank you very much for your patience on this matter. XXXX XXXX XXXX: We just received a phone call from Fay informing us our XXXX  payment is late.
 
This is beyond frustrating.
 
Who do we need to talk to for this to get resolved?  

XXXX XXXX XXXX: Thank you for the update. We were informed on Friday that the reconciliation of our wire to Fay was completed and the XXXX  payment was applied to your loan. Also, we were informed that the XXXX  and XXXX  payments were pulled through ACH.
 
Since you are indicating this is not the case, can you please clarify if the XXXX  payment was not pulled from your account or if it was pulled and applied toward previous month? 
 
Once again, we apologize for any inconvenience this may have caused. XXXX XXXX XXXX: The XXXX  and XXXX  payments were made by ACH. I did this and setup recurring payments when I was on the phone with them. This was done within XXXX hours of finally receiving access to their online portal. I believe that was a few weeks back already. Maybe late XXXX  when I spoke with them. 
 
They told me then that the XXXX  payment hadnt been paid. I shared that XXXX and Fay were working through it, and that our loan wasnt the only one affected. 
 
They must have applied those two payments as XXXX  and XXXX  because we were Past due in their system. Apparently, we still show asPast due, hence the collection call this morning stating XXXX  has yet to be received. They have previously threatened foreclosure proceedings. The agent likely would have gone there again had I given him the chance.
 
I stated that it is on them to work with Fay and that we were told the reconciliation has occurred. Please confirm with Fay on copy so this can all be put to bed. I also want confirmation that this has not and will not be reported to any credit agencies, there have been XXXX  fees for late payments, or changed the way payments were applied/credited - interest vs. principal.
 
This is upsetting, we've never been threatened with foreclosure. We have never had a late payment on a mortgage ever. Further, our loan docs state all payments will be pulled automatically. 
 
Having said that, we acted immediately when notified of the change to the loan servicer.
 
This should probably be reported to the XXXX or under the fair credit act. We are at the edge of harassment between the calls for collection and foreclosure threat. I'm now considering legal action as we were never behind, delayed or negligent in this process. 
 
We've done nothing that warrants this type of behavior. This is incompetence between XXXX  and Fay. XXXX XXXX XXXX: XXXX and Fay,
 
I just received a call from Fay servicing, A courtesy call, reminding me of the importance of paying my past-due balance online or over the phone.
 
My email from two days ago to XXXX  has gone unanswered. Due to XXXX  and Fay's harassment and incompetence, I will start calling real estate and foreclosure attorneys tomorrow at XXXX  EST. At this point, take the house. Im not answering any more phone calls about collection, foreclosure or past due balances.
 
Your prompt action in this matter is expected as I am moving to the next steps on our end. Weve made every payment. XXXX XXXX XXXX: 
We are continuing to work with Fay on solving this issue. Last week we were informed that everything was solved, but now we see it was not.

 

We escalated the issue as far as we could and expect some updates this week.

 

Your frustration is understandable, and we are very sorry for this. We are doing everything we can to make sure this situation will not impact you in the future.
XXXX XXXX XXXX: I received advice to help you all reconcile our account. Somehow, your troublesome handoff has become my problem. Here is the timeline and screenshots from our business account statements showing we are not past due:


We closed in late XXXX, with our first payment due in XXXX.
We paid our first payment on XXXX through ACH to XXXX XXXX (I assume that is XXXX  unless you bought the loan from XXXX XXXX) in the amount of XXXX.
XXXX  notified us that our loan had been sold and that the new servicer (Fay) would send us information to set up an account. However, per the loan documents, payments would continue to be withdrawn through ACH.
Payments did not continue as was communicated.
Worse, account setups were delayed. We were assured no late charges or penalties would be accrued while they worked to onboard the loans
In late XXXX  or XXXX XXXX,  we finally received access to Fay and immediately paid both XXXX  and XXXX  payments. XXXX XXXX is on copy from Fay as she set up our recurring payment and also made a one-time payment for XXXX. The payments were paid on XXXX  (XXXX  payment) and XXXX (XXXX  Payment).

We are setup on autopay. All future loan payments will be processed on time unless Fay also sells the loan and I get to do this all again. How is your accounting problem my problem? ABOVE IS THE EVIDENTIARY PROOF THAT WE ARE CURRENT WITH ALL PAYMENTS. ALL PARTIES, CONFIRM RECEIPT OF THIS EMAIL AS EVERYONE HAS STOPPED RESPONDING. FAY SPECIFICALLY, CEASE ALL DAILY COURTESY CALLS ASKING FOR PAST DUE PAYMENT AND THREATENING FORECLOSURE. CONFIRM IN WRITING THAT WE ARE NOT PAST DUE AND THE RECONCILIATION HAS BEEN CONFIRMED. XXXX XXXX XXXX: Thank you XXXX, how does XXXX  reconcile with Fay? Fay calls me every day because of a past-due account.
 

Fay, your daily calls should go to XXXX, from whom you bought the loan.

 

Ive provided the history showing that we are current. There have been three loan payments due and three loan payments. XXXX XXXX XXXX:   

We do not have a direct contact to provide to you.

 

You can communicate with Fay directly in your Portal via their direct chat, or call their Customer Service number XXXX XXXX and ask to speak with a manager to escalate.



We are again extremely sorry for this inconvenience.


On XXXX, XXXX XXXX XXXX XXXX XXXX XXXX,

 

Do you have a contact with Fay? The two copied here dont respond.

 

Fay calls me every day for collection. This is harassment. XXXX XXXX XXXX:Fay informed us that you need to make your XXXX  payment to be current. This payment was not autodrafted according to them.

 

Please do the following to confirm if this is correct information:

Review the bank account you provided to us for payments and confirm how many payments have actually been drafted from Fay. 
Login to your Fay Portal, click into Payment section, check Actual Due Date and Next Draft Date.
 

If you do this, and you see that 2 payments have been drafted from your account, and Actual Due Date shows XXXX  with Next Draft Date showing XXXX, then we would highly suggest you make a manual payment in your Fay portal for XXXX.

 

With the boarding issue some payments were not autodrafted as expected and manual payments need to be made, and this appears to be the case with your account. For you to be current with the account, you would have had 3 payments drafted (XXXX XXXX XXXX). We are thinking only 2 were drafted. 

 

But we need you to confirm as that's our only visibility into what you've actually been charged vs what we are getting from Fay.
XXXX XXXX XXXX: Again, here is the evidence I have already provided in this thread. You can see two payments have been made to Fay Servicing on XXXX (XXXX) and XXXX (XXXX). Fay Servicing is listed in the transaction from our bank account.

What more could I show to Fay? We didnt get access to their system till the end of XXXX. I was on the phone with XXXX XXXX, copied, from Fay Servicing. They dont care and wont reply in writing. They call me daily as a Courtesy call to let me know I can pay by phone or online. The initial Payment for XXXX  was made on XXXX to XXXX XXXX. Ive had three payments due and three payments made.
 

The screenshots and history are already in this thread. I sent it on XXXX, and you confirmed receipt. Guess who didnt  the two Fay contacts copied on this email.


My account shows past due. I will not be making an extra payment for the incompetence of the handoff between XXXX  and Fay. I have shown three payments for XXXX XXXX and XXXX. Fay claims we are a payment behind and that XXXX  was never reconciled. They posted my two payments as XXXX  and XXXX  because they cant reconcile XXXX  as paid. Id like a conference call with Fay and XXXX  scheduled for this week. I cant believe the collective incompetence has fallen on me to prove were not in arrears. XXXX XXXX XXXX:  Thank you for sending this again. 


If nothing has changed since our last conversation when you provided this, and the two payments drafted by Fay were not reversed and they fully posted with your bank, then the information we just recently received from Fay appears incorrect.

 

We will again pass this along to them.

_____
Fay Servicing sits silent.


Those screenshots were from XXXX. They have posted to our bank account as the XXXX was 20 and 22 days after the payments were drafted.

 

The payment in XXXX  to XXXX XXXX, is that XXXX, or has our loan been sold twice already? Either way, has it been reconciled? This is super frustrating. 
__
XXXX XXXX  parent company is XXXX, they are one in the same. The XXXX  payment was made to us (XXXX XXXX) and Fay should have reconciled it. We have provided everything they need to do this.
__
How are we doing on this? Can we schedule a call so this can be resolved?


Yesterday, I received my daily call again from Fay. I even had a voicemail from XXXX, who is copied on all these messages but wont reply. Im not getting on a collections call when I am not past due.

 

This is the strangest thing. Ive shown that we are current, I continue to get harassed, and there appears to be no recourse as the consumer who has done everything required of me.
____
We just got off of a call with Fay and we walked through your loan specifically. Fay gets the issue completely and realizes it's for them to fix, and they are. We have one more call scheduled tomorrow morning to close the loop and we have every reason to believe your loan will be brought to resolution by the end of the week. We know the calls and being treated like you've done something wrong is extremely frustrating when you've done everything you can. We are sincerely sorry for this situation and will provide another update to you in the morning. _____
XXXX: Spoke to Fay again this morning. Your account should be resolved by Tuesday next week. We have one more call with Fay that morning to wrap this up!

 

One thing, your XXXX  payment might not autodraft and a manual payment might need to be made. 

 

We will touch base with you Tuesday after the meeting with Fay for final confirmation on that.
__
Fay is still working on the corrections. We have reached out this morning for an update and they said they will update us by end of day.


We will continue following up with them and updating you on when your loan is corrected, and next steps (ie manual payment for XXXX  possibly).
___+
Our XXXX  payment has not been withdrawn. What is happening at Fay? XXXX XXXX setup our auto pay at the end of XXXX  and it pulled XXXX  in addition to the manual payment she also made for XXXX. We are overdue an update.

___
Fay has now auto-drafted XXXX payments for the month of XXXX   vs the one that is owed for XXXX.

We still do not owe for XXXX  since we paid it.


I have no words for how badly our account and this transition has been mishandled.


I would like to know how Fay can pull a double payment without our authorization?  

__
XXXX, is there another servicer option? This is beyond unacceptable. If they won't call you back that is a problem. They won't respond to email even though this should be an open case. 

 

Im not calling XXXX  for two reasons. One, I don't need him to explain to me how things work again. Two, this isn't my fault but has become my problem. This is far from our first loan and servicing company, but it is by far the worst. They are a collections company and treat us like so. 
 

There is something exceptionally wrong with what is happening here. Id like to know how Fay has drafted two months of payments today. They just pulled an amount of XXXX. Now we are a payment ahead. We weren't notified and now need to transfer money into that account. Thankfully we noticed this UNAUTHORIZED double draft. 

 

I'm beyond frustrated, I'm exasperated! We're a month and a half into getting this resolved and somehow it's getting worse.

__
I cannot express how sorry we are for this situation. If I were in your shoes I would be exasperated as well.

 

We reached out to Fay this morning and once again reiterated that you are not due for any payments except XXXX  (they know this and have confirmed they know this on our calls). We told them to refund the additional payment.

 

All I can think is the left hand doesn't know what the right hand is doing and the information we are relaying to them and they are confirming they know and will correct is not making it to their payments department.

 

This is not an excuse, I am just trying to think how this could have happened.

 


Please know we are doing everything we can. 

__
However, the lack of urgency or frankly willingness to engage by Fay is concerning. 45 days is far too long to still be addressing a simple reconciliation.

 

We have provided evidence that we were current. We had setup autopay (Which didnt draft as scheduled in XXXX), and now Fay has somehow drafted a double payment without any communication or AUTHORIZATION. Had XXXX  not caught this, other payments would have bounced. In addition to the unscheduled, unauthorized, double payment, we would also be charged with overdraft and additional fees for each occurrence until we caught this or were notified. 

 

I cant work with a company like Fay who makes it out like were a criminal, skipped payments and has us in collection. Weve done everything asked of us and demonstrated that we are current. 

 

I am formally requesting the servicing of this loan be put through another servicer and the additional payment be returned to us immediately.
__
Where does this stand? Yesterday, when we logged into our Fay account, it showed four reversals, one each for XXXX, XXXX, XXXX, and XXXX. As of today, no funds have actually been returned to us. What is happening?
__
We reached out to Fay for an update on this yesterday. We reiterated that the additional payment needs to be refunded/reversed. We are waiting for their response, but they did acknowledge our original request regarding the double payment so they are aware and working on it.
 
As for the reversals in your account, this is confusing, yes. I'm not sure what it means exactly and have seen other accounts with odd activity as well. I would go by the Payment section Actual Due Date and Next Draft Date, and also keep checking your bank for the reversal.
 
I know none of this is ideal. 
 
As far as XXXX  and Fay contacts, I'm not sure what you're referring to, but XXXX  and XXXX  are the XXXX  contacts for this issue.

___
We requested Fay to return the funds on XXXX XXXX. After that, we followed up a few more times. I am following up again right now.
 
I am very sorry you are experiencing this situation. We would like to solve this as much as you. We will keep working with you and Fay until it is fixed.
 
Please keep us updated, because we do not have any other way to get accurate information.
__
Since XXXX  received our XXXX  payment and Fay is unresponsive to your inquiries and ours. How about XXXX  refund our XXXX  payment? The XXXX  payment has always been the issue from what I can gather between Fay and XXXX.
 
Now that Fay pulled a double payment we are caught up (On their books) if you refund the XXXX  payment.
 
This shouldnt be this hard, nor should it take this amount of time. XXXX  has contracted with Fay, a collection company, and not a loan servicer. Their systems, customer service, and team consistently demonstrate how they are inadequately prepared to service our loan. 
 
I am again asking someone return our overpayment and additionally, we are requesting a different loan servicer again. Representatives of Fay are on this email, but there will be no response and Ive received no update from XXXX  or anybody at Fay in over 3 weeks.
 
Even if we get this figured out, XXXX  moves on and were stuck with them. What happens when something goes wrong again? Its clear it will happen. Look at our account. We now show four payment reversals.  What could possibly be going on that they have it this messed up?
 
What are XXXX  standards for how a customer should be treated? What are XXXX  expectations for how quickly their partners (Fay) should respond? This needs to continue to be elevated until Fay realizes XXXX  will move their business.
 
It is clear as a collection company, they dont believe or care that our account is now not just current as it has always been, but now in an overpayment situation because they pulled a double payment. They did this due to how their auto pay system works. 
 
Fay, pull the recording from when XXXX XXXX setup my auto pay. You will hear me object to most of what I was asked to agree to with adjusting interest rates and other bogus topics when we have a fixed rate loan. 
 
____
Fay is not responding and is incapable of fixing our account. We now show no payments made as all are reversed (Nothing has actually been returned though). Weve paid XXXX XXXX XXXX, and a double payment in XXXX   weve paid five payments for the four that have been due.
 
Our online Fay account is locked out for any action from us. We have not received our unauthorized double payment back, and worse, we just received a bill in the mail for XXXX  showing another double payment due. I have no words for how badly Fay manages our account.
 
I would like someone to talk with who can move this to another loan servicer, reconcile our account, and return our overpayment. We have been at this for two months now. What is the problem? If Fay wont respond to XXXX, who must we talk with?

___
From the last communication we received from Fay, they acknowledged that there was a systemic posting issue on your account, and it was escalated to the system maintenance team. This explains why your account is locked, they are doing correction work there.
 
XXXX, a co-founder of XXXX  will give you a call later to answer your questions.
I am preparing a memo for him about your situation.
 
Please let me know if there are other questions. 
___
XXXX XXXX:  I did not hear from XXXX  yesterday, and we still have an overpayment with another double payment scheduled for XXXX, according to our latest statement received yesterday. Will XXXX  be able to help us? Fay does not respond, assuming that is why they have also been removed from the email string. Fay Collections is who XXXX selected to service the loan.
 
We are stuck, have been stolen from, harassed, and have no resolution in sight.