Consumer complaint received 2018-12-06
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — 
Company: Ditech Financial LLC (WI)

I have a VA loan which is serviced by Ditech. The Investor is XXXX XXXX. 

I am having trouble with the AutoPay service that Ditech is providing for the servicing on my mortgage loan. I have contacted Ditech twice about the issue with no resolution. I looked at the XXXX XXXX website, but I did not see an area where I could file a complaint with them. 

On Saturday, XX/XX/2018, I checked my online banking and noticed that my AutoPay mortgage payment to Ditech was pending in my checking account. The mortgage payment was due on Monday, XX/XX/2018. On Sunday, XXXX XXXX, I sent to Ditech the following message : " Why was my mortgage payment debited from my account on Saturday, XXXX  XXXX  when Monday, XXXX  XXXX  is a banking day and the actual agreed payment day for the mortgage? '' I received the following message back from Ditech 30 days later : " This letter is in response to your correspondence received by Ditech regarding the above-referenced account number. 

We apologize for the delay in our response. Your payment in the amount of {$1600.00} for the XX/XX/2018 due date was received on XX/XX/2018. There was no other payment debited on XX/XX/2018. 

Please be advised, the automatic payment program does not debit on weekends or holidays. As of the date of this correspondence, the account is next due for the XX/XX/2018 due date in the amount of {$1400.00}. '' I was not satisfied with this answer from Ditech because I did not feel that they took my complaint seriously and adequately investigated my complaint. From the response sent to me, it looks like all Ditech did was check my payment history to see when they received the mortgage payment. They did not check when they REQUESTED the mortgage payment. I purposely made my complaint vague because I wanted to see what Ditech would say. 

I sent a second message to Ditech to address my concerns. It said the following : " This is in response to my previous complaint. It was not sufficiently handled by the previous person since they did not understand how Ditechs auto bill pay system works. The person who handled the complaint was correct in saying that my mortgage payment was RECEIVED on Monday, XXXX XXXX  ; however, in order for Ditech to have RECEIVED the payment on the XXXX, Ditech had to debit my account on Saturday, XXXX XXXX. You are using an ACH Direct transfer to debit the funds from my account and it takes ONE BUSINESS DAY to clear the Federal Reserve or a Clearing House. As a result I did not have access to my funds for two whole calendar days since the ACH was pending in my checking account till Monday, XXXX   XXXX. This presents the opportunity for Ditechs early debit to OVERDRAW my account since I am expecting Ditech to debit my account on the XXXX. If the agreed payment date is the XXXX, then the ACH Direct Transfer should be sent by Ditech on the XXXX or the next business day if the first falls on a weekend or a holiday. It should not be done EARLY. This could be construed as an Unfair or Deceptive Act or Practice ( UDAP ). Also, this was reported to the Credit Reporting Agencies that I was disputing this account? I am not disputing the account ; I am disputing your auto bill pay procedures. Thank you, XXXX XXXX '' As my second message to Ditech states, I am concerned that Ditech 's AutoPay procedures present the opportunity for my checking account to be overdrawn because Ditech is sending the ACH Direct transfer to debit the funds from my account earlier then the agreed payment date. A reasonable consumer would expect there loan payment to be debited from there account on Monday, XXXX XXXX, not two days earlier. If the agreed payment date is the XXXX, then the ACH Direct Transfer should be sent by Ditech on the XXXX or the next business day if the first falls on a weekend or a holiday. 

I definitely feel that Ditech 's AutoPay procedures could be construed as an Unfair or Deceptive Act or Practice ( UDAP ). 

These AutoPay procedures can cause or is likely to cause substantial injury to consumers due to potential overdraft issues.

This is an unfair practice because a consumer could not be expected to avoid this injury because a reasonable consumer would expect a mortgage payment to be debited on the agreed date. Not two days earlier than agreed. The bank 's Monthly AutoPay Application does not state that it is the bank 's practice to debit an account two days early if the due date is on a Monday. This information was withheld that prevents a consumer from making an informed choice. 

There is no countervailing benefits to consumers for debiting a consumer 's account earlier than agreed to. 

Ditech 's disclosures mislead or is likely to mislead because it omits information needed to prevent a consumer from it's account overdrawn. 

A reasonable consumer would expect a mortgage payment to be debited on the agreed date. Not two days earlier than agreed.

Ditech 's AutoPay practices are material because it is likely to affect a choice, it relates to costs ( Overdraw Fees ), and the Omitted information is necessary to make a rational decision regarding the AutoPay service.

Attached to this message are the messages received from Ditech and the AutoPay Application.