Consumer complaint received 2024-11-07 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Incorrect information on your report — Account status incorrect
Company: PENNYMAC LOAN SERVICES, LLC.
State: AR

Complaint narrative:
Pennymac claims to have business values of " accountability, reliability, and ethical behavior. '' However, their online customer payment system, email communications and predatory, spam-oriented sales practices are systematically designed to increase fees and sales- not protect consumers. 

Their practices resulted in a first mortgage late fee ever and a 'ding ' on our credit report - reducing our ability to refinance once rates drop sufficiently. They've profited from arranging anti-consumer systems and thus cost our family precious dollars. 

We, as consumers with previously perfect credit payment histories, changed bank accounts for autopay. The online system apparently *SKIPS* paying your current month, moving your next payment to AFTER the current one due. There is no reason their system can't accept a payment- yet it didn't and I missed a payment, resulting in a late fee and 30 day late on my credit. Apparently there is some website text we missed, putting the 'blame ' for this systemic failure on the consumer. 

Normally, I would have acted upon any communication from Pennymac about my late payment, allowing me to correct the problem in time. And, indeed, at some point during the month ( 18 days after I missed a payment ), there was one email in my spam folder about a payment being missed. However, they also buried us in sales spam after rates dropped in XXXX, resulting on the one email being filtered as spam. 

In an ethical company, service practices and communications are focused on serving the customers paying for services. However, during the month which the online system skipped my payment, mortgage rates dropped a little bit. Pennymac sent us sales emails ( and texts and calls ) every couple of days, relentlessly. Examples of just the emails I have copies include : XXXX : Call now to save XXXX : You can save up to {$210.00} per month ( to me ) XXXX : You can save up to {$210.00} per month ( to husband ) XXXX : URGENT, you can lower your payments ( to me ) XXXX : URGENT, you can lower your payments ( to husband ) XX/XX/XXXX : IMPORTANT : Call now to save ( to me ) XX/XX/XXXX : IMPORTANT : Call now to save ( to husband ) XX/XX/XXXX : You can save up to {$310.00} a month ( to me ) XX/XX/XXXX : You can save up to {$310.00} a month ( to husband ) XX/XX/XXXX : URGENT :, you can lower your monthly payment ( to me ) XX/XX/XXXX : URGENT :, you can lower your monthly payment ( to husband ) XX/XX/XXXX : Your monthly payment reminder - Hi At Pennymac, we make it quick and convenient for you to access your account. '' - no mention of late payment due XX/XX/XXXX : XX/XX/XXXX : Your monthly payment reminder - At Pennymac, we make it quick and convenient for you to access your account. " - no mention of late payment due XX/XX/XXXX : You can save up to {$120.00} per month ( to me ) XX/XX/XXXX : You can save up to {$120.00} per month ( to husband ) XX/XX/XXXX : URGENT :, you can lower your monthly payment ( to me ) XX/XX/XXXX : URGENT :, you can lower your monthly payment ( to husband ) XXXX : Payment Due Reminder - the only email stating we missed a payment, buried in predatory sales spam and flooding into my spam folder*** XX/XX/XXXX : IMPORTANT : Call now to save up to {$1400.00} per year ( me ) XX/XX/XXXX : IMPORTANT : Call now to save up to {$1400.00} per year ( husband ) XX/XX/XXXX : Monthly statement notice XX/XX/XXXX : Your mortgage payment- At Pennymac, we make it quick and convenient for you to access your account. '' ( to me ) - no mention of late payment due XX/XX/XXXX : Your mortgage payment - At Pennymac, we make it quick and convenient for you to access your account. '' ( to husband ) - no mention of late payment due XX/XX/XXXX : : A new home? We can help you make it happen XX/XX/XXXX : A new home? We can help you make it happen Many of the SALES EMAILS indicate a " time sensitive alert. '' The " mortgage payment '' emails do not reference missed payments nor time sensitive info. Clearly, communications are geared toward revenue and flooding customers with spam - effectively hiding the late payment information until after they can charge fees. 

Finally on XXXX, after reporting us to credit as more than 30 days late, they sent us a " DOCUMENT NOTICE OF LATE PAYMENT '' that came through, not as spam. They could, apparently, sent such a notice at any point, but instead sent us sales communications. And, during this same period, we got call after call and text after text of refi offers. 

Pennymac has, very obviously, designed their online user interface and payment system to skip same month auto pays changes, likely because they receive extra late fee revenue. They designed predatory, spam oriented email campaigns to BURY real customer communications, making it difficult to act upon actual account information. 

This company 's day to day practices are a threat to the very consumer protections put into place after XXXX. I tried twice to explain the payment missed was an ERROR due to the way their system is set up. I protested a lack of notification of their system SKIPPING our payment. The supervisor I spoke to at Pennymac scolded me, noting they have **no obligation to remind consumers a payment was late and they do not have to email anyone. ** He also lied, stating Pennymac has no control over reporting a payment as late or not, despite systems issues or failures to communicate with customers. Further, he said our inability to filter the single late payment notice from the flood of spam was our fault, since we didn't know to opt out. Yet, Pennymac profited off our late fee and will continue to profit off our inability to, in the future, refinance at a lower rate b/c our credit score was lowered. They benefit, we suffer, and yet their system failures, designed by Pennymac, are at fault. 

The company should be required to fix both it's predatory, fee-making auto-pay system and be required to send a series of clear, correct, highly discriminable consumer communications about late or missed payments. That is the only way to build trust with consumers ( NOT communications for profit ), and protect those same customers. 

Their response to our issue is shameful. And, I want any 'late payment ' negative report moved from my husband and I 's credit report. I'd like a refund of the late fee. Systemic practices such as these continue to threaten consumer financial well-being during one of the most costly financial eras of our lifetimes. 

I did not miss a payment. **I arranged an ontime payment** and Pennymac 's user interface and designed MOVED move my next payment to the following month- and they designed the system.

Company response to consumer: Closed with explanation