Consumer complaint received 2024-04-10 00:00:00
Product: Mortgage — Other type of mortgage
Issue: Struggling to pay mortgage — Trying to communicate with the company to fix an issue related to modification, forbearance, short sale, deed-in-lieu, bankruptcy, or foreclosure
Company: Fay Servicing, LLC
State: FL

Complaint narrative:
Subject : Complaint Against Fay Servicing for Predatory Debt Collection Practices and Repeated Errors Dear Consumer Financial Protection Bureau, I am writing on behalf of XXXX XXXX XXXX XXXX to file a formal complaint against Fay Servicing for engaging in predatory and unfair debt collection practices related to the mortgage on our property located at XXXX XXXX XXXX, XXXX, Florida, XXXX, associated with account number XXXX. Below is a detailed account of the issues we have encountered : In XXXX, XXXX separate payments were made towards the monthly mortgage ; {$1700.00} from XXXX bank account, and {$380.00} from another. A mistake occurred on XXXX XXXX part where the representative misrecorded the account number for the {$380.00} payment, which prevented the transaction from processing correctly. 

This error was not identified until XXXX, when we attempted to make the subsequent monthly payment and noticed that the XXXX payment had not been processed. Instead of correcting their error, Fay Servicing charged default interest for 41 days and beyond, and XXXX our online payment capabilities, preventing any further attempts to rectify the issue through their online system. 

This incident of charging exorbitant fees due to administrative errors is not isolated. Previously, when our bank details had to be changed due to a compromised account which caused a slight delay in payment, Fay Servicing charged over {$4000.00} in default interest. This fee was added to the loan balance without consideration of the circumstances or any attempt at understanding, illustrating a pattern of predatory behavior. 

When we contacted Fay Servicing to resolve the issue and proceed with the XXXX payment, we were informed that we would need to pay not only the current amount due but also the accumulated interest of {$3700.00} from their prior error. They refused to accept any payment that did not include this inflated interest amount, effectively forcing us to agree to their terms or face further financial penalties. 

These practices are not only predatory and unjust, but they also demonstrate severe mismanagement and a lack of basic customer service ethics on the part of Fay Servicing. Penalizing customers for errors made by their own staff, and blocking payment attempts to enforce unnecessary charges, are clear violations of fair debt collection practices. 

We urge the Consumer Financial Protection Bureau to investigate this matter with urgency and to enforce measures to correct these issues. We are seeking a resolution where all erroneous charges and accrued interest are waived, and our ability to make payments is fully restored. Furthermore, we request that safeguards are implemented to prevent such issues from recurring in the future. 

Thank you for your time and help. 

Sincerely, XXXX XXXX For XXXX XXXX XXXX XXXX XXXX # XXXX

Company response to consumer: Closed with explanation