Consumer complaint received 2025-04-25 00:00:00
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Fay Servicing, LLC
State: FL

Complaint narrative:
Complaint to the Consumer Financial Protection Bureau Against : Fay Servicing Subject : Unauthorized Escrow Account Creation and Mishandling of Insurance Payment I am filing this complaint regarding a deeply frustrating and unresolved issue with Fay Servicing, the servicer of my home equity line of credit ( HELOC ). Despite my repeated attempts to work with them in good faith, they have mishandled my account, created financial confusion, and are now attempting to charge me for an error of their own making. 

In early XX/XX/XXXX, I received a letter from my homeowners insurance provider, XXXX, stating that my policy would be at risk of cancellation if payment was not received by XX/XX/XXXX. I paid the balance on XX/XX/XXXX, well before the deadline. Unbeknownst to me, XXXX also sent this letter to Fay Servicing. 

Fay representatives appear to have misread the letter, incorrectly assuming my policy had already been canceled. Without notifying me, they took two unauthorized actions : They made a payment to XXXX on my behalf. 

They established an escrow account on my HELOC for ongoing insurance paymentsdespite the fact that I have never had an escrow agreement with them and handle all taxes and insurance independently. 

I only discovered these actions in early XXXX, when I received a significantly increased monthly bill from Fay Servicing, which included charges for the new escrow account. I immediately contacted them and was told the issue would be corrected. It was not. On follow-up calls, I was asked to provide proof of coverage, which I did by resending my insurance binder. 

I was then informed that if I reimbursed Fay Servicing for the payment they made to XXXX, the issue would be resolved. I agreed and submitted payment in XX/XX/XXXX. Despite fulfilling my end, Fay Servicing continued to charge me escrow fees. In XXXX, I was told I must pay several XXXX dollars more to " close out '' the escrow accountwithout any coherent explanation or justification. 

I have been unable to get a supervisor to return my calls, and each new representative I speak with provides conflicting or unclear information. The only person who has shown genuine effort to help is a representative named XXXX XXXX, but even he has been unable to resolve the situation or explain why I am being asked to pay additional money. 

To be clear : I never had a lapse in insurance coverage. 

Fay Servicing was not authorized to open an escrow account. 

Their continued billing and refusal to close the account is unjustified and is causing financial and emotional distress. 

I have now suspended my automatic payments because I no longer trust them to withdraw the correct amount from my account. This situation is unacceptable and, at this point, I feel I have no option but to seek assistance from the CFPB or pursue legal action. 

I am requesting immediate intervention to : Terminate the escrow account. 

Revert my monthly payments to the appropriate amount. 

Provide a written explanation and confirmation that the issue is fully resolved. 

Thank you for your attention to this matter.

Company response to consumer: Closed with explanation