Consumer complaint received 2023-02-07
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: Fay Servicing, LLC (VA)

Consumer Complaint Against : Fay Servicing XXXX XXXX XXXX, XXXX XXXXXXXX XXXX XXXX XXXX XXXX Re : Servicing of Account Number XXXX I am writing to lodge a formal complaint against Fay Servicing for violation of Real Estate Settlement Procedures Act ( RESPA ) as well as Unfair, Deceptive and Abusive Acts or Practices ( UDAAP ). 

On XX/XX/XXXX, I attempted to make my mortgage payment online XX/XX/XXXX through our servicer XXXX XXXX online portal. At that time, I discovered that our Unpaid Principal Balance ( UPB ) was showing as {$0.00} and that our ability to make electronic payments had been turned off. I called XXXX XXXX to inquire about these changes and was informed, over the phone, that my servicing had been transferred to Fay Servicing ( see Attachment A for handwritten notes from my conversation with XXXX, which should be recorded ). They instructed me not to send payment to XXXX and to await instructions from Fay Servicing on when and where to send payment. My wife then called Fay Servicing to obtain payment information for our newly transferred loan, at which time they declined to provide that information and instructed us to await the official Notice of Servicing Transfer letter. That conversation was documented in an email to our accountant ( Attachment B ). 

As of XX/XX/XXXX, I still had not received the Notice of Servicing Transfer from Fay Servicing, but I received a XXXX mortgage statement indicating payment due on XX/XX/XXXX ( Attachment C ). I submitted a bank check that day for {$980.00} ( exact amount due ). The receipt shows the check was scheduled for delivery on XX/XX/XXXX ( Attachment XXXX ) I received no other correspondence from Fay Servicing until receiving my next mortgage statement in late XXXX, now indicating a past due balance of {$980.00} ( for the payment due XX/XX/XXXX for which I remitted payment by bank check on XX/XX/XXXX ), a late charge in the amount of {$72.00}, and an additional amount due of {$980.00} for the payment due XX/XX/XXXX Total balance due was therefore {$2000.00} and the statement indicated that after XX/XX/XXXX, another late fee of {$72.00} would be assessed ( Attachment XXXX ). 

Even though I had already sent a check for the payment due XX/XX/XXXX, I set up an online account with Fay Servicing and then attempted to pay the {$2000.00} online ; however, Fay Servicings website would not allow me to make the payment. Per Attachment F, the system appears to think that online payments are likely already set up, but in that same screenshot, you can see that there are no scheduled payments. While XXXX should have transferred over with the servicing transfer, it clearly did not ; however, it appears the system thinks it did, and is now refusing to take any payments. 

On XX/XX/XXXX I called Fay Servicings customer service number to attempt payment by phone. I was transferred twice and put on hold for over 45 minutes. When I finally reached an agent in Account Management ( agent email : XXXX ), he informed me that he would not accept my payment in the amount of {$2000.00} ( again, the amount showing due per my mortgage statement. ) He stated that in order to accept a phone payment, I would have to pay {$4300.00} to cover default interest at 24 %. As my statement clearly shows, my outstanding balance due as of that day was {$2000.00}. I requested several times for him to take payment in the amount of {$2000.00} so that I could at least bring my account current. He refused to accept any payment in any amount less than {$4300.00}. The alternative he gave me was to request a waiver for the default interest from my lender ; I asked if this step could be done concurrently while also taking payment for the amount due on my statement. He stated I had to pay {$4300.00} or nothing at all. I also asked if he could set me up on XXXX payments going forward, and he stated that was not possible either. When I questioned the legality of his responses, the agent indicated that Fay Servicing is not required to follow mortgage servicing regulations or CFPB rules. 

To summarize : -Servicing of my loan transferred from XXXX XXXX XXXX Fay Servicing XXXX XX/XX/XXXX. 
XXXX called both XXXX XXXX and Fay Servicing XXXX XX/XX/XXXX to obtain the payment address for payment due XX/XX/XXXX. 
-I was instructed to wait until receiving the Notice of Servicing Transfer, which I never received. ( Agent indicates Fay Servicing tried to reach me several times by phone, but when I asked if they left a message, he said No, we dont leave messages. ) XXXX XX/XX/XXXX I received a statement from Fay showing an amount due of {$980.00} on XX/XX/XXXX. I sent a bank check that day to XXXX XXXX payment processing center, with delivery scheduled for XX/XX/XXXX. 
XXXX XXXX, I received my next statement from XXXX XXXX a past due amount of {$980.00}, late charge of {$72.00}, and a new charge of {$980.00} for the payment due on XX/XX/XXXX - for a total amount due of {$2000.00}. 
XXXX tried to make the payment online, but Fay Servicings system generated an error that instructed me to call Customer Service XXXX 
XXXX XX/XX/XXXX I called Fay Servicing to make the payment by phone. 
-The Fay Servicing agent refused to accept payment for the amount due of {$2000.00}. He stated that he could only accept payment for {$4300.00} to cover default interest at 24 %. I asked where this information was on the statement ; he said the statement was irrelevant. 
I asked the agent to accept a partial payment for the {$2000.00} while I disputed the default interest with the lender and he refused. He stated the only way he would accept payment is if I paid the {$4300.00} to cover the default interest. He also stated he would not set me on XXXX until that amount was paid. 

As the above history shows, I have done everything within my power to make my payments on-time, despite poor communication from Fay Servicing following the transfer of my loan in XX/XX/XXXX. I have attempted to make payments online, over the phone, and by check sent directly from my bank. Fay Servicing will not accept payments from me online, will not set me on XXXX, can not tell me where my bank check went, and is now refusing to accept payments over the phone for the amount due as shown on my statement. Literally, I have no way of paying my account at this time. 

As of this morning, I have sent another bank check for {$2000.00} plus an additional {$72.00} for XXXX late charge that was added yesterday due to Fays refusal to take payment by phone or online ( Attachment G ). I am requesting the following : XXXX. Both my XXXX and XXXX late fees be refunded in full ; 2. Any derogatory credit bureau reporting be removed ; and 3. Fay Servicings payment processing policies be thoroughly investigated. 

A record of my call should be available through Fay Servicing. I called at XXXX on XX/XX/XXXX and was on hold for 45 minutes before finally being connected to an agent. 

Please feel free to contact us with any questions. 

XXXX XXXX ( Account Owner ) - XXXX XXXX XXXX ( Authorized Representative ) - XXXX Enclosures : Attachment A -XXXX XXXX statement for payment due XX/XX/XXXX Attachment B - Email to accountant re-capping conversation with Fay Servicing XXXX XXXX XXXX Fay Servicing statement for payment due XX/XX/XXXX Attachment D - Receipt for bank check sent XX/XX/XXXX for payment due XX/XX/XXXX Attachment E - Fay Servicing statement for payment due XX/XX/XXXX Attachment F - Screenshot from Fays website showing it would not accept online payment Attachment G - Receipt for bank check sent XX/XX/XXXX covering XXXX & XXXX payments