Consumer complaint received 2025-07-30 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Fees charged
Company: Fay Servicing, LLC
State: NJ

Complaint narrative:
XXXX XXXX XXXX XXXX XXXX XXXX XXXX, NJ XXXX Formerly : XXXX XXXX XXXX XXXX # XXXX XXXX, NJ XXXX Attention : XXXX XXXX Date : XX/XX/XXXX To : Fay Servicing , LLC XXXX XXXX XXXX, XXXX XXXX XXXX XXXX, TX XXXX RE : Loan No. XXXX Formal Dispute of Excessive Default Interest and Servicing Practices To Whom It May Concern, I am writing on behalf of XXXX XXXX XXXX to formally dispute a pattern of unjust and abusive mortgage servicing practices on the above-referenced commercial loan. 

Over the past several years, your company has applied excessive default interest and penalties totaling over {$80000.00}, triggered by events that were either caused by your delay, your system restrictions, or situations we attempted to promptly cure. The actions taken have substantially inflated our loan balance and may rise to the level of unconscionable contract enforcement, bad faith servicing, and equitable misconduct under New Jersey law. 

Summary of Disputed Incidents XXXX. XXXX XXXX XXXX ( XXXX XXXX ) In XX/XX/XXXX, during the height of the XXXX shutdown, we submitted a request for a deferment. Your office failed to respond for nearly XXXX months, and when you finally did in XXXX, you demanded : - Immediate payment of two months in advance - Imposition of a XXXX XXXX  default interest rate- Adding over {$35000.00} to the back of the loan This action penalized us for your own delay and took advantage of extraordinary circumstances, contrary to industry standards and fair dealing. 

XXXX. XXXX XXXX XXXX XXXX XXXX ( XXXX XXXX ) In XXXX, XXXX monthly payment was returned due to a banking issue. We immediately contacted your office to cure the situation. Instead, your company : - Initiated default interest almost immediately - Required a {$7000.00} payment to reinstate- Added another {$7000.00} to the loan balance - Continued to allow interest to accrue rapidly during good-faith efforts to resolve the matter This resulted in a forced reinstatement process and profit-driven default charges disproportionate to the missed payment. 

XXXX. Sunday XXXX XXXX and Additional XXXX XXXX Penalty ( XXXX ) Most recently, a payment attempt made on the final day of the grace period a Sunday was blocked by your system. When we paid on Monday, you applied yet another XXXX XXXX default interest charge based on the principal balance, amounting to tens of thousands of dollars. 

Under XXXX. XXXX, performance deadlines that fall on a Sunday must be honored the next business day. Your refusal to accept payment and immediate imposition of fees violates this statute and basic commercial fairness. 

XXXX Grounds While this is a commercial loan, and not governed by federal consumer protection statutes, XXXX XXXX law still provides strong contractual and equitable protections. Your actions may constitute : - Breach of the implied covenant of good faith and fair dealing - Unconscionable enforcement of contract terms - Violation of XXXX. XXXX ( performance date rollover for weekends ) - Constructive acceleration without proper opportunity to cure Our Demands We hereby demand the following : XXXX. A full accounting of all default interest, penalties, fees, and balance increases since XX/XX/XXXX. 
XXXX. A written explanation of how the XXXX XXXX  default rate was calculated, and where it is authorized in the loan agreement. 
XXXX. Reversal of the most recent default interest charge triggered by the Sunday payment rejection. 
XXXX Review and reversal of any charges that accrued during the COVID-era deferment request delay and the XXXX reinstatement process. 

If this matter is not addressed promptly and resolved reasonably, XXXX XXXX XXXX reserves all rights to pursue relief through : - A formal complaint to the New Jersey Department XXXX Banking and XXXX - Civil litigation for unjust enrichment, breach of contract, and equitable reformation - Potential inquiry with legal counsel regarding commercial lending abuse We request your full written response within XXXX business days from the date of this letter. 

Sincerely, XXXX XXXX Managing Member XXXX XXXX XXXX XXXX XXXX XXXX

Company response to consumer: Closed with explanation