Consumer complaint received 2026-03-15 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Payment process
Company: PLANET HOME LENDING, LLC
State: MS

Complaint narrative:
My mortgage servicer has engaged in a continuous, multiyear pattern of unlawful payment handling, suspense manipulation, and false delinquency creation beginning no later than XX/XX/XXXX and continuing through XXXX. These violations occurred before, during, and after my XXXX XXXXXXXX bankruptcy and have caused significant financial harm, credit damage, and wrongful delinquency status. The earliest documented violation occurred on XX/XX/XXXX, when the servicer drafted my payment via XXXX and applied {$0.00} to my loan, placing the entire payment into suspense. This was a full periodic payment that the servicer initiated themselves. They failed to credit it, left the due date unpaid, and immediately created a false delinquency. This is a direct violation of Regulation Z, Regulation X, and the CFPBs mortgage servicing rules. On XX/XX/XXXX, the servicer drafted my payment again and applied it 35 days late, despite it being an XXXX draft. They again diverted part of the payment into suspense without any lawful basis. This continued the false delinquency they created the month before. From XXXX through XXXX, the servicer repeatedly : applied payments weeks or months after the received date marked payments XXXX, XXXX, XXXX, XXXX, XXXX, XXXX, XXXX, XXXX, XXXX, and even XXXX days late placed full payments into suspense split payments into multiple fragments used received date outside applied date as a routine explanation applied payments to the wrong due month created and maintained false delinquency statuses reported inaccurate late payments to the credit bureaus manipulated effective dates failed to provide accurate account statements These errors continued during my active XXXX XXXX bankruptcy, which violates 11 U.S.C. 524 ( i ). The servicer continued to misapply payments, use suspense improperly, and generate false delinquencies while I was under federal bankruptcy protection. Their actions undermined the bankruptcy process and caused ongoing harm. The servicers misconduct escalated into foreclosure threats. My husband and I were forced to file XXXX XXXX bankruptcy to stop a foreclosure that was triggered by the servicers own errors, not by any failure on our part to make payments. The servicer continued the same pattern of misapplication during bankruptcy and is still issuing delinquency notices in XXXX, including letters stating that we are seriously delinquent, despite the fact that the delinquency was created entirely by their own servicing failures. I also received a XXXXn alert showing that my mortgage was reported as XXXX days late while simultaneously showing that I was {$0.00} behind. This is not possible unless the servicer created an artificial delinquency through misapplication of payments. A true XXXX delinquency would show a pastdue balance. Reporting me as XXXX days late with a {$0.00} delinquent amount confirms that the servicers own payment handling errorsnot any missed paymentscaused the false delinquency. This inaccurate reporting has damaged my credit and further demonstrates the servicers systemic failure to apply payments correctly and maintain accurate records. As a result, my account history is materially inaccurate, my credit has been damaged, and I have been repeatedly and falsely shown as delinquent due to the servicers misconduct. This is a systemic servicing failure that has persisted for XXXX years.

Company response to consumer: Closed with explanation