Consumer complaint received 2023-08-24
Product: Mortgage — Other type of mortgage
Issue: Trouble during payment process — 
Company: Fay Servicing, LLC (IL)

RE : Unauthorized overpayment from Fay Servicing LLC. 

Fay Servicing is servicing a mortgage loan for one of my properties. On or about XX/XX/XXXX I discovered an unauthorized debit from my business account in the amount of {$6600.00}. Within fact {$4800.00} ( The extension fee ) of this amount was not unauthorized and was not supposed to be drafted due to an extension fee deferment agreement between borrower XXXX XXXX and Fay Servicing. The same day I reached out to hard money lender XXXX XXXX XXXX XXXX  who originally closed the loan, to advise them of this. I received WRITTEN correspondence from Portfolio Specialist XXXX XXXX stating, Fay Servicing is aware of the issue and is working on getting the glitch fixed. After no status update, I followed up again with XXXX XXXX XXXX XXXX XXXX XX/XX/XXXX and was advised the issue has been sent to upper management for a resolution and I will be receiving the overpayment reversal same day. The portfolio specialist further stated any further issues to contact Fay Servicing directly. After contacting Fay Servicing directly, on or about XX/XX/XXXX XXXX XXXX with Fay Servicing contacted me via email requesting my bank information and proof of unauthorized payment to initiate the reversal of overpayment. We are 24 days into the month of XXXX to date, and I still have not received the return of overpayment. After multiple follow ups with XXXX XXXX, I have not received any updates. I even reached out to Fay Servicing customer support again thereafter and I was assured they will escalate this to higher management but no solution, no call back, no status updates to date. This is unacceptable and Fay servicing should be held accountable for their actions. It is evident that proper communication and transparency were severely lacking, leading to a company error which furthermore has led to an unjustifiable overpayment situation. To further explain the extension fee : A extension fee deferment agreement was executed on XX/XX/XXXX between XXXX XXXX  ( Borrower )  and Fay Servicing ( Lender ). This agreement was initiated because 12 months was the term of the loan. The maturity date for this loan was XX/XX/XXXX. It was agreed if more time is needed to sell the property a 1 % 3 month extension fee is acceptable if paid up front, or a 2 % 3 month extension is acceptable if deferred to the next maturity date which would be XX/XX/XXXX. The contract states the lender will defer the extension fee and the borrower agrees to pay in full the deferred amount of {$4800.00} and any other amounts still owed under the note and the security instrument by the earliest of either the date borrower sells, pays off unpaid principal balance or maturity date XX/XX/XXXX. I signed and agreed to the terms of option two, which was a 2 % extension fee of the entire loan amount deferred. In addition, Fay Servicing never provided the executed copy of the deferment contract with their signature. I only received written confirmation Fay Servicing received my signed copy and that they will forward it to the processing department. They failed to provide an executed agreement to me as a consumer. They have yet to reverse this unauthorized overpayment. They breached the terms and conditions of the deferment agreement as well. In result I have suffered monetary damages, overdraft charges, inability to pay other bills in a timely fashion and is suffering from negligent interference of a third party contract. They have failed to address these concerns promptly and need to be investigated and or penalized. This is unfair business practice