Consumer complaint received 2024-07-16 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Trying to communicate with the company to fix an issue while managing or servicing your loan
Company: SELECT PORTFOLIO SERVICING, INC.
State: MD

Complaint narrative:
Legal Note : Victim v. Select Portfolio Servicing , Inc . 
Subject : Negligence in Loan Modification Process, Misrepresentation, and Credit Damage Background : During the XXXX pandemic, Victim relied on the United States Federal Government 's assurance that mortgage payments could be deferred and addressed after the pandemic. XXXX XXXX Victim 's tenant ceased paying rent during this period, prompting her to utilize the grace period offered by the federal government. The mortgage for her property at XXXX XXXX XXXX XXXX, XXXX, Maryland XXXX, was initially held by XXXX XXXX, with the loan originating from XXXX XXXX and serviced by XXXX XXXX, a loan brokerage company. 
The government promised that deferred mortgage payments would either be reintegrated into the loan at a higher monthly rate or appended to the end of the loan term. Despite XXXX XXXX Victim complying with all required procedures, XXXX XXXX failed to honor this promise. In the fall of XXXX, XXXX XXXX Victim was informed that her loan was sold to Select Portfolio Servicing, XXXX ( SPS ). Since XX/XX/XXXX, her mortgage has been serviced by SPS, which has not acted in good faith to facilitate a loan modification. 
Claims of Negligence and Misrepresentation : Failure to Engage and Process Loan Modification : SPS has been negligent in its duty to engage with XXXX XXXX Victim, who has requested a loan modification for the amount of {$12000.00} since XX/XX/XXXX. SPS has failed to process this request, exacerbating the financial burden on XXXX XXXX Victim. 
Non-application of Payments : SPS has not applied any payments towards the increasing delinquency, resulting in a perpetual and compounding financial strain. 
False Statements : SPS has lied multiple times regarding the reasons for not processing the loan modification, including false claims that XXXX XXXX Victim did not sign the necessary documents correctly. These statements are untrue and constitute deliberate misrepresentation. 
Impact on Credit and Additional Hardships : The negligence of SPS has severely impacted XXXX XXXX Victim 's XXXX XXXX. She is currently facing a family emergency and is unable to obtain a Home Equity Line of Credit ( HELOC ) from her primary residence due to SPS 's refusal to complete the loan modification. Her credit has deteriorated significantly as a result of SPS 's actions. 
XXXX XXXX : Elimination of Delinquent Payments : XXXX XXXX Victim requests that the court enforce a judgment to eliminate all delinquent mortgage payments as of the court appearance date. 
Fixed Monthly Payment : She seeks a court order ensuring that the current mortgage payment of {$570.00} per month, as indicated on SPS 's web portal, remains fixed until the mortgage is fully paid off in accordance with Maryland state law. 
Credit Restoration : XXXX XXXX Victim also asks for the removal of all adverse actions taken by SPS that have damaged her XXXX XXXX and for her XXXX XXXX to be restored to its previous state. 
Conclusion : Due to the negligence, misrepresentation, and detrimental impact on XXXX XXXX Victim 's credit by SPS, she is entitled to judicial relief. The court 's intervention is essential to protect her rights, address the financial damages incurred, and hold SPS accountable for their failures in managing the loan modification process. 
Addendum to Complaint : Victim v. Select Portfolio Servicing, XXXX et al. 
Subject : Addition of Defendants, Request for Damages for Pain and Suffering, and Allegations of Illegality and Abuse Background : Additional defendants have been included in the existing complaint against Select Portfolio Servicing XXXX XXXX ( " SPS '' ) due to their alleged complicity in the wrongful actions perpetrated against the plaintiff, Victim. These actions have caused significant distress and financial harm to the plaintiff. 
Defendants Added : XXXX XXXX : President and CEO of Select Portfolio Servicing , Inc . 
XXXX XXXX : XXXX and XXXX XXXX of XXXX XXXX. 
These individuals, by virtue of their positions, are responsible for the operational environment at SPS and XXXX XXXX, which allegedly fostered practices of deception and customer mistreatment, contributing to the grievances detailed herein. 
Claims of Aggravated Actions and Illegality : Unlawful Fund Transfer : On or around XX/XX/XXXX, XXXX XXXX Victim discovered irregularities in the management of her mortgage payments post-receipt of her lawsuit by SPS. Funds designated for her property at XXXX XXXX XXXX were inappropriately redirected to XXXX XXXX XXXX XXXX without her consent, which contravenes lawful procedures and ethical standards. 
Coercive Communication and Default Threats : On XX/XX/XXXX, XXXX XXXX Victim received XXXX default threats and a coercive communication demanding payment by XX/XX/XXXX. These actions reflect a pattern of abusive practices and unwarranted pressure on the plaintiff. 
XXXX XXXX Demands : Despite the substantial financial burden, XXXX XXXX Victim complied with SPS 's demands. On XX/XX/XXXX, she was informed by an SPS agent that she owed {$2900.00} to bring the account for XXXX XXXX XXXX current and {$9900.00} for XXXX XXXX XXXX XXXX, both of which she paid as documented in the attached bank statements. However, it was later revealed that these funds were not properly recorded in SPS 's system. 
Unauthorized Loan Modification : Contrary to the plaintiff 's intentions, an SPS agent automatically initiated a loan modification for XXXX XXXX XXXX. This action was taken without XXXX XXXX Victim 's request, and SPS falsely claimed that she requested the withdrawal of this modification. 
Lack of Transparency : The SPS online portal fails to reflect the payments made by XXXX XXXX Victim, further evidencing SPS 's deliberate negligence and mishandling of her accounts. 
Damages and Request for Compensation : In light of the severe distress and financial damage caused by SPS 's actions, and the complicity of XXXX XXXX and XXXX XXXX, XXXX XXXX Victim seeks an additional {$10000.00} in damages for pain and suffering. The ongoing mismanagement, unlawful fund transfer, coercive demands, and false claims by SPS have exacerbated her financial strain, deteriorated her credit, and hindered her ability to address a pressing family emergency. 
Complaint Filed : A formal complaint has been filed with the Better Business Bureau against SPS for their abusive practices and failure to address XXXX XXXX Victim 's legitimate concerns. 
Conclusion : The deliberate negligence and harmful actions of SPS, supported by XXXX XXXX, have violated the principles of reconciliation and current mortgage law. The plaintiff, XXXX XXXX Victim, has endured significant emotional and financial suffering, justifying the request for {$10000.00} in compensatory damages for the ongoing harm experienced. 
XXXX XXXX : The court should enforce the elimination of all delinquent mortgage payments as of the court appearance date. 
The court should ensure the fixed monthly mortgage payment of {$570.00} for XXXX XXXX XXXX XXXX until the mortgage is fully paid off per Maryland law. 
The court should order the removal of all adverse credit actions by SPS and restore XXXX XXXX Victim 's XXXX XXXX. 
An additional {$10000.00} in damages for pain and suffering is requested. 







Review of Select Portfolio Servicing , Inc . 
My experience with Select Portfolio Servicing, XXXX ( SPS ) over the last XXXX months has been profoundly negative. SPS has persistently refused to process my loan modification request despite having all the required documentation since the beginning of the year. Their handling of my case has been marred by a lack of transparency and repeated misrepresentation. 
Throughout this period, I have received XXXX letters from SPS falsely claiming that I had failed to submit the necessary information for my loan modification. These claims are completely baseless ; all requested documents were provided promptly. This pattern of sending misleading communications appears to be a deliberate effort to avoid addressing my modification request. 
Moreover, XXXX management of my mortgage payments has been highly problematic. Payments that I have made have not been correctly applied, leading to an unjust increase in my delinquency. This mishandling of funds exacerbates the financial pressure and creates a misleading representation of my payment status. 
The customer service provided by SPS has been equally troubling. Instead of offering assistance, their communications have been hostile and coercive, demanding immediate payments under threat of default. This abrasive approach only adds to the stress and frustration of dealing with them. 
XXXX refusal to modify the loan and their consistent dissemination of false information reflect a deep-seated issue with their service quality and ethical standards. This experience has severely impacted my financial situation and XXXX XXXX, causing significant personal distress. I strongly advise caution to anyone considering engaging with SPS due to their negligent practices and the unnecessary hardship they have caused. 
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- - Addendum to Complaint : Victim v. Select Portfolio Servicing, XXXX et al. 
Subject : Additional Defendant, Allegations of Systemic Misconduct, Threatening Communications, and Request for Damages Introduction : This addendum addresses the ongoing misconduct by Select Portfolio Servicing XXXX XXXX ( " SPS '' ) and the addition of XXXX XXXX, XXXX and XXXX of SPS, as a defendant. It details the systemic issues and deceptive practices at SPS, supported by recent customer reviews and complaints. Additionally, it outlines the threatening communications received by Victim and requests further damages for pain and suffering. 
Systemic Misconduct and Customer Feedback : SPS continues to inflict pain and suffering on the plaintiff, Victim. The company has demonstrated a pattern of dishonesty and incompetence in its customer interactions, as corroborated by its dismal average rating of XXXX out of XXXX stars based on XXXX customer reviews on the Better Business Bureau ( " BBB '' ) website. Over the past XXXX years, SPS has had XXXX complaints closed, with XXXX complaints closed in the last 12 months alone. This significant number of complaints underscores the widespread dissatisfaction with SPS 's service, indicating an environment of incompetence and a lack of genuine customer care. 
Addition of Defendant : Given his leadership role and responsibility for the operational practices at SPS, XXXX XXXX, XXXX and XXXX of SPS, is hereby added as a defendant in this lawsuit. His inclusion reflects his accountability for the pervasive issues within the organization that have adversely impacted the plaintiff and numerous other customers. 
Threatening Communications : The plaintiff received a threatening letter from SPS 's registered agent, XXXX XXXX XXXX XXXX XXXX the removal of SPS from XXXX case under the threat of imposing legal fees on the plaintiff. This coercive tactic further demonstrates SPS 's willingness to intimidate and exert undue pressure on the plaintiff. Therefore, the plaintiff petitions the court to mandate that all legal fees imposed by XXXX XXXX XXXX XXXX XXXX by SPS, XXXX to their collusion in fostering an unfair and broken system that harms customers. 
XXXX XXXX XXXX XXXX XXXX : SPS sent a letter falsely claiming that the plaintiff requested the transfer of funds from the mortgage account for XXXX XXXX XXXX to cover alleged late payments on XXXX XXXX XXXX XXXX. There is no evidence to support this claim, and the plaintiff did not make such a request. All phone transcripts are recorded and will demonstrate that SPS fabricated this claim. Subsequently, SPS issued a default threat for XXXX XXXX XXXX, alleging non-payment, which further illustrates SPS 's manufactured default in violation of their procedures. 
Refusal to Correct Credit Report Errors : Despite repeated requests, SPS has refused to correct errors on the plaintiffs credit report, causing continued harm and impeding her ability to manage a family emergency. The ongoing refusal to rectify these inaccuracies further exacerbates the plaintiffs distress and financial challenges. 
Request for Additional Damages : In light of the continued harm, abusive practices, and refusal to address legitimate concerns, the plaintiff seeks an additional {$10000.00} in damages for pain and suffering. 
Additional Measures : The plaintiff intends to contact XXXX XXXX, Chairman of the XXXX XXXX XXXX, to request oversight and intervention concerning SPS 's practices. The House XXXX XXXX XXXX has jurisdiction over economic and banking system issues, housing, and consumer protection. Bringing the XXXX of SPS before the XXXX XXXX be necessary to ensure accountability and initiate systemic reform. Additionally, consideration is being given to initiating a class action lawsuit to address the ongoing harm inflicted on XXXX customers and to effectuate permanent change. 
Conclusion : The addition of XXXX XXXX as a defendant, the documentation of systemic issues, and the request for further damages are essential to address the significant and ongoing harm caused by SPS. The plaintiff seeks judicial relief to rectify these issues and hold SPS accountable for their actions. 


Addendum to Complaint : Victim v. Select Portfolio Servicing, XXXX et al. 
Subject : Allegations of Systemic Misconduct and Request for Additional Damages XXXX. Overview of Deceptive Practices and Retaliation : Select Portfolio Servicing, XXXX ( " SPS '' ) has exhibited a consistent pattern of deceptive and uncaring activities towards the plaintiff, Victim. Despite fulfilling all requirements for a loan modification in XXXX, XXXX, XXXX, XXXX, XXXX, and XX/XX/XXXX, SPS has refused to XXXX the modification. The agents handling the plaintiff 's case were inadequately trained and uninformed about the status and procedures necessary for processing the loan modification. 
XXXX. Retaliatory and Deceptive Correspondence : SPS engaged in retaliatory actions by sending the plaintiff XXXX letters falsely asserting that she had not submitted all necessary materials for the loan modification concerning the property located at XXXX XXXX XXXX XXXX, XXXX, Maryland XXXX. Despite the plaintiff making full payments and maintaining her account status up to date, SPS falsely claimed that she had missed payments for XXXX and XX/XX/XXXX. Bank XXXX XXXX statements provided by the plaintiff contradict these claims. Furthermore, SPS issued misleading notifications alleging delinquency, despite phone transcripts confirming the plaintiffs account was current. 
XXXX. Systemic Misconduct : The conduct of SPS towards the plaintiff demonstrates a pattern of misleading, illusory, ambiguous, deceptive, deceitful, fraudulent, and callous behavior. Such actions are indicative of systemic misconduct within SPS, reflecting a broader issue of incompetence and malice. 
XXXX. Impact on Credit and Request for Damages : SPSs actions have caused significant harm to the plaintiffs credit. SPS has refused to engage in standard arbitration procedures to resolve these issues and has instead acted in a manner that can be construed as retaliatory towards the plaintiff. As a result, the plaintiff requests additional restitution of {$8000.00} for the continued injustice suffered. The total amount of restitution sought by the plaintiff is {$30000.00}. 
XXXX. Warning of Further Legal Action : Should this matter not be resolved amicably, which is the plaintiff 's preference, Victim intends to escalate the case from XXXX XXXX XXXX XXXX XXXX. The plaintiff seeks justice and equitable relief from the court to address the ongoing and deliberate harm inflicted by SPS. 

Conclusion : The court must not condone such behavior from SPS and should take into account the malicious and uncaring nature of their actions towards the plaintiff. The plaintiff, Victim, respectfully requests that the court XXXX the additional restitution sought and ensure that SPS is held accountable for their continued deceptive practices and retaliation.

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