Consumer complaint received 2022-06-07 00:00:00
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — 
Company: Village Capital & Investment LLC
State: IL

Complaint narrative:
I have been paying my mortgage, due to an error on their end their raised my mortgage too high and charged me late fees. They are taking money out of my mortgage payments and applying it to these late fees and principal and saying I missed my mortgage payment. Now even though I had a surplus of around {$12.00} they are asking for another full payment. I have received a letter threatening to report me to the credit bureau on Sat XX/XX/XXXX. 

I am alleging 3 unfair practices- Charging consumers unauthorized amounts - Incorrect handling of partial payments- Misrepresenting mortgage loan transactions and payment history in online accounts- 1st allegation : Charging consumers unauthorized amounts- Village capital incorrectly charged me {$1900.00} on my escrow for hazard insurance. My Insurer XXXX ( acct # XXXX ) said they never asked for that amount and never received such an amount so the charge itself is suspicious, they want to know who got the {$860.00} difference. XXXX asked for {$1000.00} in Hazard insurance on XX/XX/XXXX. Village capital increased my monthly mortgage rate from {$460.00} to {$610.00}. Village capital then began charging me late fees on the incorrect amount.

2nd allegation : Incorrect handling of partial payments. Servicers are required to take one of the following specific actions when they receive a partial payment from a borrower : crediting the payment, returning it to the consumer, or holding it in an unapplied funds account. They put my overpayments towards principle and then hit me with a late fee. When I under paid {$5.00} despite overpaying {$6.00} for 4 months. 

I over paid {$6.00} a month from XXXX to XX/XX/XXXX, this should of covered the {$5.00} increase on XXXX and XXXX bill. 
XXXX - {$470.00} XX/XX/XXXX ( Over paid {$6.00} ) - Payment is {$460.00} XXXX - {$470.00} paid XX/XX/XXXX ( Over paid {$6.00} ) XXXX - {$470.00} paid - XX/XX/XXXX ( Over paid {$6.00} ) XXXX - {$470.00} paid - XX/XX/XXXX ( Over paid {$6.00} ) Village Capital Incorrectly changes my Hazard ins to {$1900.00} vs. {$1000.00}, says payment went up {$140.00} per month. {$11.00} is how it actually went up. 
XXXX - {$470.00} paid XX/XX/XXXX -amount due - XXXX ( underpaid {$5.00} XX/XX/XXXX- {$470.00} paid XX/XX/XXXX -amount due - XXXX ( underpaid {$5.00} ) net positive- {$12.00} ( not late! ) I have never authorized a payment to go to principal curtailment. This is for mortgage only. 

I should be in a net positive of {$12.00} but Village capital is hitting me with late fees and saying I owe {$470.00} 3rd allegation : Misrepresenting mortgage loan transactions and payment history in online accounts.- Despite being in a net positive theXX/XX/XXXX Village capital website shows I have a late fee and a 5 day past due payment of {$470.00} for XX/XX/XXXX and a late charge of {$24.00} as of XX/XX/XXXX. 

I have called the help line 3 times, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX. I was told it was going to be fixed each time. I was also told the late fees would be waived. 

XXXX and XXXX XX/XX/XXXXpayment history to Village Capital : Mortgage- {$470.00}, Check # XXXX - Cashed XX/XX/XXXX Mortgage- {$470.00}, Check # XXXX - Cashed XX/XX/XXXX Mortgage- {$470.00}, Check # XXXX - Cashed XX/XX/XXXX Mortgage- {$470.00}, Check # XXXX - Cashed XX/XX/XXXX Mortgage- {$470.00}, Check # XXXX - Cashed XX/XX/XXXX Mortgage- {$470.00}, Check # XXXX - Cashed XX/XX/XXXX Shortage- {$150.00}, Check # XXXX ( too cover any late fees despite the fact I should be in surplus ) XX/XX/XXXX XXXX XXXX XXXX XXXXXXXX, OK ACH transaction XXXX {$470.00} to prevent damage to my credit rating. This is XXXX over at this point. 



Village Capital Website payment history. 
XX/XX/XXXX Principal Curtailment Principal Only Payment {$430.00} XX/XX/XXXX Payment Mortgage Payment {$500.00} XX/XX/XXXX Payment Mortgage Payment {$470.00} XX/XX/XXXX Late Charge Late Charge Assessment ( - {$24.00} ) XXXX XXXX, XXXX Payment Mortgage Payment {$470.00} XXXX XXXX, XXXX Insurance Paid Homeowners Insurance Disbursement ( - {$1000.00} ) XXXX XXXX, XXXX Principal Curtailment Principal Only Payment {$6.00} XXXX XXXX, XXXX Payment Mortgage Payment {$460.00} XX/XX/XXXX Principal Curtailment Principal Only Payment {$6.00} XX/XX/XXXX Payment Mortgage Payment {$460.00} XX/XX/XXXX Principal Curtailment Principal Only Payment {$6.00} XX/XX/XXXX Payment Mortgage Payment {$460.00} XX/XX/XXXX Principal Curtailment Principal Only Payment {$6.00} XX/XX/XXXX Payment Mortgage Payment {$460.00} Saturday I received a letter that I would be reported to the credit bureau for not paying. 
First attempt XXXX XX/XX/XXXX, Called Village Capital and was told it was going to be fixed. Told late fees would be waived. 
2nd attempt Thursday XX/XX/XXXX, Called Village Capital and was told it was going to be fixed. Told late fees would be waived. 
3rd Attempted Friday XX/XX/XXXX, Called Village Capital and was told it was going to be fixed. Told late fees would be waived. 
4th Attempt spoke with XXXX who agreed with me, related she would contact a supervisor, get this fixed ensure it wasn't on my credit rating by the end of the day. 
XX/XX/XXXX Received a call back from XXXX, missed it. 

XXXX Called XXXX back who related XXXX left a note that late fees could not be reversed and I still owe {$470.00} for XX/XX/XXXX despite already paying it. I was told partial payments will not be accepted towards mortgage. I attempted to get a supervisor again, I was not called back. 

To avoid them contacting the credit bureau I again sent {$470.00} on XX/XX/XXXX. I will again be paying {$470.00} on XX/XX/XXXX with a check clearly marked for Mortgage Only.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation