Consumer complaint received 2020-03-09 00:00:00
Product: Credit reporting, credit repair services, or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Account status incorrect
Company: SELECT PORTFOLIO SERVICING, INC.
State: MD

Complaint narrative:
I am writing to complain about questionable business practices currently being employed by Select Portfolio Servicing. I hope your office as assist me in resolving this matter without the need for further action. Therefore, I am requesting that your office launch a full inquiry into this matter. The issues are as follows : On or about XX/XX/XXXX, I attempted to pay my mortgage payment ( for XXXX ) with Specialized Loan Servicing. However, the representative informed me that as of XX/XX/XXXX, my mortgage account was transferred to Select Portfolio Servicing and that I should contact them to make all future mortgage payments. I  immediately contacted Select Portfolio Serving and the representative confirmed that my account was indeed transferred to their company. The representative also told me that my account hasn't been inputted into the system and that I should wait a few days to make my payment and that I had 60 days to make any past due payments without any adverse effect to my credit profile. 

On XX/XX/XXXX, I received a letter from Select Portfolio Servicing confirming that my mortgage account is being transferred from Specialized Loan Servicing to Select Portfolio Servicing. 

On XX/XX/XXXX, I called Select Portfolio to make a mortgage payment ( while still under the impression that I am still protected by the 60 grace period to make my payments. I made a payment of {$1800.00}, which was applied to my XXXX payment. During that conversation the representative stated that Select Portfolio has several payment options that could assist me in catching up on my XXXX payment if necessary. I initially rejected the offer, since I still believe until XX/XX/XXXX to bring my account current. 

On or around XX/XX/XXXX, I contacted Select Portfolio Servicing and told the representative that I wish to enroll in their 6 month deferment program. The Representative told me that my first payment is due on XX/XX/XXXX in the amount of {$2400.00}. I was still under the impression that since I made this arrangement before my grace period ended, this enrollment would not have any adverse effect on my credit profile. Plus the representative did not mention that signing up for this program would have an adverse effect on my credit profile. 

On XX/XX/XXXX, I made my first payment in the amount of {$2400.00}. However, shortly thereafter I receive an alert from my credit monitoring account that my credit score was decreased by 55 points due to a late payment! My wife 's credit score was also reduced by 48 points! 

On XX/XX/XXXX I contacted Select Portfolio to inquire about the late payment. I spoke to a representative at the main office ( XXXX ) who stated that while I am on this program for the next 6 months they will continue to report a past due late payment to the credit agencies. I stated that if I knew this from the beginning I would not have signed up for this program. This program does not benefit me in the least. I told her to remove me immediately from this program and I will make my arrangement to make my mortgage payments for XXXX and XXXX shortly. I made my XXXX payment on XX/XX/XXXX and plan to make my XXXX payment within the next two weeks. If the representative was transparent and honest during our conversation, I would never signed for such a ridiculous and unscrupulous program. This is a questionable business by this company aimed to ruin the average consumers credit. I asked the representative to explain the benefits of such a program. She said was that you could avoid late and attorneys fees! How does late fees and attorneys fees compare to a ruined credit profile? 

I thought that as long as a signed up for this program with the 60 days grace period it would have no adverse effect of my credit. I think that this very important point should have been mentioned when joining this program to give the person an opportunity to see if joining this program is worthwhile. However, the representative failed to mention this! 

I am a XXXX  XXXX  and currently hold a XXXX XXXX XXXX  and having good credit is one of the conditions of employment. Having derogatory and adverse information on my credit could cost me my job! Plus I will have to explain this issue during my next re-investigation. 

The representative said that she understood that there was a misunderstanding and told me that she would contact her Legal department to see if they can reverse the points on my credit profile. However, I have little faith that they will do anything. 

This company does not have a good reputation based on the complaints that I have read on the XXXX  XXXX  XXXX and the Consumer Protection Agency websites. I intent to file similar complaint with the Office of Consumer Affairs and the Maryland Office of Financial Regulations.  This program should be offered to folks who are months behind on their mortgage, in bankruptcy or foreclosure. They should be more explicit when offering these payment options to their customers. I have only been late once on my mortgage payment which that was due to a time different ( the company was located in a different time zone. Your assistance in this matter would be highly appreciated. 

For further information, you can reach me at XXXX or email me at XXXX XXXX

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