Consumer complaint received 2025-10-30 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Interest rate
Company: Valon Technologies, Inc.
State: AZ

Complaint narrative:
I am writing to file a formal complaint against XXXX XXXX  and Valon Mortgage for unfair, deceptive, and unlawful mortgage servicing practices that have caused me severe financial loss and emotional distress. 
When I purchased my home in XX/XX/XXXX, my original loan carried a fixed 4.5 % interest rate. I made on-time payments for the first XXXX months. Without prior written notice or explanation, my original lender sold or transferred my mortgage loan to Valon Mortgage. I only discovered this transfer when my original account appeared as closed on my credit report and Valon Mortgage began billing me for the same months I had already paid. 
Following this transfer : My previous XXXX mortgage payments were not properly credited to my new account. 
Valon Mortgage demanded duplicate payments for the same months that were already paid to XXXX XXXX. 
My interest rate was increased from 4.5 % to 7.5 %, which is significantly higher than both my original loan terms and the current average national mortgage rate. 
This increase was made without my consent, without a loan modification agreement, and without any written justification or notice, in violation of federal lending and consumer protection laws. 
These actions have resulted in financial hardship, credit score damage, and emotional suffering. I believe the conduct of both mortgage servicers constitutes violations of the Real Estate Settlement Procedures Act ( RESPA, 12 U.S.C. 2605 ), the Truth in Lending Act ( TILA ), and the Consumer Financial Protection Act of 2010, which prohibits unfair, deceptive, or abusive acts or practices ( UDAAP ).

Legal Violations and Concerns Under federal law : Mortgage servicers must provide written notice of any loan transfer at least 15 days before the effective date ( 12 U.S.C. 2605 ( b ) ). 
All payment histories, balances, and escrow accounts must be accurately transferred to the new servicer ( Regulation X, 12 C.F.R. 1024.33 ).

Interest rates can not be changed on a fixed-rate mortgage without a formal modification agreement signed by the borrower and full disclosure under TILA. 
The unexplained increase from 4.5 % to 7.5 %, along with the failure to credit prior payments, represents a serious violation of my contractual rights and federal consumer protection laws. 
Requested Relief I respectfully request : A full investigation into the loan transfer and the interest rate increase. 
Correction of my payment history and restoration of the original 4.5 % fixed rate agreed upon at the time of purchase. 
Reimbursement for any duplicate payments, late fees, or penalties charged as a result of this error. 
Removal of any negative credit reporting caused by these unlawful practices. 
Assurance that both lenders comply fully with RESPA, TILA, and UDAAP standards going forward. 
Supporting Documentation I am prepared to provide : The original mortgage contract and closing disclosure showing the 4.5 % rate. 
Proof of the first XXXX payments made to XXXX XXXX. 
Statements and correspondence from Valon Mortgage showing the new 7.5 % rate. 
Copies of my credit report showing the account closure and transfer. 
Conclusion The actions taken by XXXX XXXX and Valon Mortgage have caused me substantial financial loss, emotional hardship, and confusion about my home loan. I am requesting a full review of this matter, immediate correction of errors, and restoration of fair and lawful terms under federal mortgage servicing laws. 
Thank you for your time, understanding, and attention to this serious issue. 
Sincerely

Company response to consumer: Closed with explanation