Consumer complaint received 06/16/2016 about Mortgage (Conventional adjustable mortgage (ARM)) with Fay Servicing, LLC (CA).
Issue: Loan servicing, payments, escrow account

Complaint: My complaint is in regard to Fay Servicing, ( FayServ ), a debt collector, who is handling my mortgage for XXXX. FayServ has been charging me late payment fees not in compliance with their late payment fee policy. 
FayServ 's policy, which is clearly noted on my monthly statement, says, " If payment is received after XXXX, {$150.00} late fee will be charged. ". However, the statement date is also displayed on the statement. Looking over all my statements in question, it shows that all statements, for subsequent months, are generated prior to the XXXX of the month, most often the XXXX or XXXX. The latest statement date, on my statements in question, was the XXXX. Therefor, even if payment is received by the XXXX or XXXX, it would indicate on the next months statement that the previous months payment was not received, therefor, adding a " PAST DUE '' and late fee amount to the next months statement.Therein lies the issue. The late fee is not returned. In my case this occurred four consecutive months, XX/XX/XXXX ( {$140.00} ), XX/XX/XXXX ( {$120.00} ), XX/XX/XXXX ( {$110.00} ) and XX/XX/XXXX ( {$110.00} ). That is a total of {$490.00}. of late fees that should not have been charged. All due to monthly statements being generated " prior '' to the XXXX of the month. 
I contacted my designated point of contact at FayServ each month this occured. She said she would look into it and " get back to me ''. However, she has never initiated contact with me with any resolve or explanation regarding this issue. The last time I managed to contact her, she said, if " they '' do n't get " my '' payment deposited by the XXXX, regardless of the date " they '' receive " my '' payment, " I '' will be charged a late fee. I was n't in agreement with her statement and asked to speak to her supervisor, she stated, " he is in a meeting and she would have him call me '', I have not heard from him. 
I have been sending my payments through my credit union bill pay service. A month or two after starting this method of payment, I noticed it took as much as 3-4 days, after the payment was transferred electronically, before the funds were deducted from the account. I contacted my credit union to discover that FayServ does not take direct payment, they only take electronic checks when the customer chooses this method of payment. My bank statements and bill pay records clearly show that the latest any payment has been sent this year is XXXX/XXXX/16. Typically, payments, for the months in question, XX/XX/XXXX-XX/XX/XXXX, are forwarded electronically, between the XXXX and XXXX with funds deducted form my account no later than the XXXX. Therefore, according to FayServ policy, I have not been " late '', but they still charge a late fee. 
So, my complaint in summery, FayServ is improperly charging late fees and not refunding them. FayServ inappropriately generates monthly statements prior to the XXXX of the month, negating compliance with their policy. FayServ does not credit my payment in an appropriate and timely manner. So, I would like FayServ to comply totheir policy and return my {$490.00}.

Company response to consumer: Closed with explanation