Consumer complaint received 2023-07-28 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: Fay Servicing, LLC
State: PA

Complaint narrative:
Issue : Fay Servicing my loan serving company has created an illegal escrow account without my consent. What happened : Prior to Fay Servicing purchasing and servicing my loan I had optioned to pay my taxes outside of my mortgage payment because I didn't want my taxes escrowed. So when Fay Servicing obtained my loan my taxes was not escrowed. Every year I pay my taxes via an installment plan initiated by the county tax claim bureau. While I was paying my XXXX taxes via the terms of my installment plan I was excited that I was down to paying my final payment of {$530.00} and my entire XXXX tax bill was going to be paid in full. When I went to pay the final payment, the representative named XXXX at the county tax claim bureau informed me that someone paid the final payment for me. I asked XXXX who was the someone and XXXX asked me who was Fay Servicing. I informed him that was my mortgage company. XXXX informed me that Fay Servicing paid the {$530.00} final payment and my entire XXXX tax bill which I was NOT delinquent. 

I then called Fay Servicing and spoke with XXXX in the customer care department. XXXX apologized for this mistake and informed me that Fay Servicing was not aware that I was paying my taxes in an installment plan. She asked me if the county tax claim bureau will be willing to reimburse Fay Servicing for the taxes they paid and then I can continue to pay my taxes via my installment plan. 

I told XXXX that I can call the tax claim bureau and we can all be on the line and she can ask them that question. With all XXXX of us on the line XXXX asked the representative at the tax claim bureau if they can reimburse Fay Servicing for the taxes that they paid. And she asked if I was delinquent with my taxes. The representative stated no that they could not reimburse Fay Servicing because they had already processed the tax payments. She then stated that I was not delinquent. XXXX asked if she ( the county tax claim representative ) can send this information to her in an email. She provided the tax claim representative her email address and I asked if I can be cc 'd on the email for my records. The tax claim bureau representative did exactly that she sent it to XXXX in an email and she cc 'd me. I then agreed to reimburse Fay Servicing for the {$530.00} ( final XXXX tax payment ) and {$3500.00} ( XXXX taxes ). 

XXXX stated that me reimbursing Fay Servicing was acceptable but instead of establishing a payment plan for me to reimburse Fay Servicing an illegal escrow account without my consent was established. They put my taxes in escrow and my mortgage payment went from {$640.00} per month to {$1100.00}. I have asked them to remove the escrow that I didn't want my taxes escrowed. I just want to reimburse Fay Servicing back and continue paying my taxes outside my mortgage as I had been for all these years with no problems. They refuse to remove the escrow and every time when I send double or triple payments to reimburse them for the taxes they turn around and pay another one of my tax bills to keep me in escrow and they say my escrow have a negative balance so they can't remove it. 

Recently, my XXXX real estate tax bill of {$2300.00} came in the mail. The tax collector provided an installment plan where we can pay the bill in XXXX installments with the first payment being received by XX/XX/XXXX in the amount of $ XXXX went to the post office and purchased a money order on XX/XX/XXXX and mailed the installment payment to the tax collector. I go on the Fay Servicing website and see they paid the entire {$2300.00} tax bill so now the tax collector will get my installment payment and there full payment. 

I called and spoke with XXXX at Fay Servicing in the tax dept. I provided her with a copy of my money order receipt and the installment coupon from the tax collector. She stated she was going to document my account and she recommended I speak with a supervisor in the customer care division of Fay Servicing to remove the escrow. 

She transferred me to the customer care division and I spoke with XXXX. XXXX stated that the escrow can not be remove until there is a XXXX balance. I explained to her but everytime I try to pay down the balance you guys pay another XXXX of my tax bills she said it was nothing she could do. 

Overall, I will continue to pay my taxes outside of my mortgage because that is my right. Fay Servicing has no legal grounds for escrowing my taxes especially when the tax claim bureau put it in writing that I was not delinquent and confirmed that I was my making my payments via a payment plan. I want my taxes outside of this illegal escrow. I want to continue to reimburse Fay Servicing for the taxes it paid but not inside an illegal established escrow account. 

I appreciate CFPB looking into this matter. 

Thanks, XXXX

Company response to consumer: Closed with explanation