Consumer complaint received 2016-11-20 00:00:00
Product: Mortgage — FHA mortgage
Issue: Loan servicing, payments, escrow account — 
Company: CARRINGTON MORTGAGE SERVICES, LLC
State: MS

Complaint narrative:
We paid our mortgage to Carrington Mortgage on XXXX/XXXX/16 - through their online payment system - where our banking information was stored. The system generated a confirmation number. We received a letter XXXX/XXXX/16 confirming this payment and confirmation number. We then received a mortgage statement from Carrington Mortgage dated XXXX/XXXX/16 showing the mortgage payment applied XXXX/XXXX/16. Then about XXXX/XXXX/16 we received a letter stating that the payment was rejected due to account not being found. On XXXX/XXXX/16 we paid the mortgage again through Carrington Mortgage system - utilizing the same stored banking information that had previously been used for the majority of this account payment transactions. The system again generated a confirmation number and sent a letter XXXX/XXXX/16 confirming that the payment had been processed. About XXXX/XXXX/16 we received another letter stating that the payment had been rejected due to account not being found. We then called Carrington Mortgage customer service and had a customer service rep assist with making the payment. The system generated a confirmation number. Then we received a mortgage statement from Carrington Mortgage XXXX/XXXX/16 showing the XXXX/XXXX/16 payment reversed, the XXXX/XXXX/16 ( {$1300.00} ) payment applied, and the XXXX/XXXX/16 payment ( {$1300.00} ) reversed, a pay by phone bill fee ( {$5.00} ) charged, XXXX/XXXX/16 payment applied, and a single item ( late fee - {$42.00} ) charged. 
We called Carrington Mortgage in XXXX after we noticed that the mortgage payment for XXXX 2016 had been reported late on our credit reports. I asked why was there a late charge being reported on our credit reports. I was told because the payment had been 30 days late. I explained the situation - telling the representative that we had pay the mortgage account online as we had done in the past - the system generated a confirmation number and we believe that the account had been paid - until received the letter in the mail - on both occurrences. The customer service rep explained that getting a confirmation number does not mean the account was paid - just that it was attempting to be paid. I told her with other systems a confirmation number generally mean a payment has been accepted and processed. The rep stated it was a key stroke error and that there was nothing they could do. It was not there fault. 
About XX/XX/XXXX I called Carrington Mortgage customer service again and asked to speak with a manager. A manager never came to the phone - but gave responses back and forth with the customer service rep and said that it was not that they could do again because it was not their fault. I explained that in 16 years we had never been late on this loan and this error in their payment processing system had significantly lower our credit scores and that we were in the process of selling the home attached to that mortgage account and purchasing another. And that this action could greatly hinder our ability to purchase our new home. The rep stated that the manager said that they could not do anything. The representative suggested to write to their customer research department to dispute the action. 
On XXXX/XXXX/16 I faxed a letter to their customer research department explaining that situation and asked for immediate action to be taken to remove the negative reporting for our credit reports. We supplied them with their own documentation. I called the next business day to see had they received the request and was told it would take 30 days. I called every business day after to see if they had received it and updated it. 
On XXXX/XXXX/16 I called Carrington Mortgage and was informed that they would not be updating our account information as it was not their fault and that we would receive a letter stating our account would not be updated to reflect that the account had not been late and that it was not their fault.

Company response to consumer: Closed with explanation