Consumer complaint received 2024-03-13
Product: Debt collection — Mortgage debt
Issue: False statements or representation — Attempted to collect wrong amount
Company: Midwest Loan Services, Inc. (MI)

On or about XX/XX/XXXX at XXXX, XXXX XXXX XXXX contacted Midwest Loan Services ; who represents XXXX XXXX XXXX for mortgage lending, regarding a HARDSHIP RELIEF APPLICATION for the purposes of attaining financial relief to keep his mortgage current and not delinquent. This is due to the changing of employment and the compensation process of his clients regarding his new employment. To apply for a HARDSHIP RELIEF APPLICATION multiple documents had to be provided to the mortgage servicer including pay stubs, bank statements, tax documents, credit counselor review, business records and more. In response, Midwest Loan Services approved the HARDSHIP RELIEF APPLICATION with a Deferment Plan or Forbearance Program that would stop the collection of payments, pause the mortgage for a certain term and allow XXXX XXXX XXXX time to pay off consumer debt, reduce overall interest payments, and save capital while making some form of payments to Midwest Loan Services to be used to reduce the overall monthly balance or accumulated balance at the end of the " approved hardship plan ''. This way once the " plan '' reached the end of its term, any balance still due would be rolled into the mortgage total and would extend the mortgage term by a certain amount of months. On or about XX/XX/XXXX at XXXX all documents were submitted to Midwest Loan Services , completing the HARDSHIP RELIEF APPLICATION. Shortly after, Midwest Loan Services approved the HARDSHIP RELIEF APPLICATION. Unfortunately, to this present date, XXXX XXXX XXXX has yet to receive the details or documents of the " approved hardship plan '', sign any final documents, and is going off verbal consent with a representative of Midwest Loan Services. Over the course of the last XXXX months, XXXX XXXX XXXX has made several payments to Midwest Loan Services, reduced his consumer debt, removed credit lines, negative bank accounts and resolved balances on all financial accounts provided to Midwest Loan Services following the " approved hardship plan ''. During that time, XXXX XXXX XXXX became aware that the company was still issuing monthly late fees, not applying any of the payments to the overall balance and requested an entire new HARDSHIP RELIEF APPLICATION be filled out where if I could not pay the entire balance due. Furthermore, when XXXX XXXX XXXX initiated a phone conversation on or about XX/XX/XXXX to make an additional {$3500.00} payment to the balance a different representative of Midwest Loan Services became condescending, rude, unprofessional and would not even take the payment resulting in a delay of completing the initial " approved hardship plan ''. Currently as of XX/XX/XXXX the account on XXXX XXXX XXXX credit score is showing a XXXX XXXX  balance with a due date of XX/XX/XXXX and not in foreclosure or bankruptcy. XXXX XXXX XXXX is alleging that Midwest Loan Services has engaged in and supported by XXXX XXXX XXXX : 1 ) Violations of REGULATION OF COLLECTION PRACTICES ( Act 70 of 1981 ) 445.252 - Sec. 2 ( e ) ( f ) ( ii ) ( n ) ( q ) 2 ) Violations of MICHIGAN CONSUMER PROTECTION ACT ( Act 331 of 1976 ) 445.903 - Sec. 3 ( 1 ) ( a ) ( i ) ( m ) ( n ) ( o ) ( s ) ( x ) ( cc ) 3 ) Violation of FEDERAL TRADE COMMISSION ACT - Sec 444 ( 4 ) 4 ) Violation of FEDERAL TRADE COMMISSION ACT - 15 U.S.C. 45 ( a ) - Sec. 5.