Consumer complaint received 2018-10-30
Product: Mortgage — VA mortgage
Issue: Struggling to pay mortgage — 
Company: Fay Servicing, LLC (VA)

Fay servicing is engaging in unfair and deceptive acts and practices and in violation of federal consumer and financials laws. Fay Servicing misled me a XXXX XXXX Veteran about its debt collection practices and also unfairly froze us out of our account without adequate warning preventing us from making payments on our account. 

Fay Servicing unfairly restricted our account access when our account was delinquent preventing us from making all payments. Fay Servicing needs to correct its debt collecting practices. Consumers need to be able to cure their default by making their loan payments by the cure of default deadline. At this time we are still frozen out of our accounts from making payments. 


In addition when our assigned account manager set up our payments he scheduled the payment to process from the wrong bank account resulting in the payment being returned. We emailed our account manager the correct account that the payments needed to be setup and still the payments were setup incorrectly. We did not receive a confirmation with details of the payments the account manager setup  with banking information so we had no access to realize the wrong bank account was used until we received a notification from our bank. 

In addition to correct his mistake the account manager told us he setup new payments and gave us a confirmation number. Days later no payments processed and when we called into Fay Servicing were told no such withdrawals were setup matching the amounts and date we were told under the confirmation number. 

Fay Servicing misled us about it debt collection practices. We were informed that online access would not be restored for us to make the payments to cure our default. When we called in to make the payments we were told by account managers only our assigned account manager could accept the payment. 

We called our account manager several times without success. When we finally received a response from our account manager he stated he was out of the office sick and that the reason his supervisor did not contact us either is because his supervisor also was out of the office with a family emergency. 

Fay Servicing has misrepresented the consequences of falling behind on loans with the details in the threatening letters they mailed to us. Our account manager told us that as long as we made the payments within the 90 days of the HAMP rules our account would not go into foreclosure status. I informed the account manager of the notice of default my husband and I received in the mail threatening foreclosure. Our account manager informed us that Fay Servicing does not check the account records to see if we have a HAMP agreement before mailing out the default letters. 

The only account action we can take is to schedule payments through our assigned collection manager. When I mentioned this issue to my account manager he stated this was required because our loan was included in a chapter XXXX bankruptcy. It is not fair that account holders that have mortgages that were included in a bankruptcy and are attempting to make payments are frozen out of the system to make payments. Our chapter XXXX bankruptcy was closed out over a year ago. We were making payments on our loan successfully prior to Fay Servicing taking over the loan. Fay Servicing needs to implement proper procedures for electronic account restrictions.