Consumer complaint received 2026-05-27 00:00:00
Product: Mortgage — Other type of mortgage
Issue: Trouble during payment process — Payment process
Company: Fay Servicing, LLC
State: CT

Complaint narrative:
Date : XX/XX/XXXX RE : Formal Complaint Regarding Unauthorized ACH Cancellation and Improper Late Fee Loan # XXXX To Whom It May Concern : I am writing to file a formal complaint regarding the servicing of my mortgage loan by Fay Servicing LLC and to request the immediate removal of an improperly assessed late fee on my account. Loan Number : XXXX Property Address : XXXX XXXX XXXX, XXXX XXXX XXXX, XXXX XXXX My mortgage loan originated with XXXX XXXX and has since been transferred multiple times, first to XXXX XXXX and then to Fay Servicing LLC. From the inception of this loan, automatic ACH drafting was not merely an option it was a requirement of the loan arrangement, and I completed all required ACH authorization forms to ensure my payments would be drafted timely and without interruption. My closing package also specifically stated that ACH auto-draft enrollment was required as part of the loan servicing setup. Additionally, my closing documents included the following language : I UNDERSTAND THAT MY LOAN REQUIRES AUTOMATIC PAYMENTS. I hereby authorize XXXX XXXX XXXX XXXX and its authorized representatives, service providers, agents, assigns and successors ( XXXX ), to initiate a RECURRING charge/debit entry to my account at the US depository financial institution named below, and to debit the same to such account on a monthly basis on my payment due date as specified in my loan documents which is the first day of each month. Additionally, the ACH authorization documents included language stating : Failure to pay using a recurring ACH debit from a business purpose account ( e.g. making payments by check ) constitutes an Event of Default under the terms of my Loan Documents. This language, taken directly from my closing documents, further demonstrates the seriousness and mandatory nature of the ACH arrangement tied to this loan. At no point did I request cancellation of the ACH authorization or take any action that would justify its removal. In fact, according to Fay Servicings own policies, cancellation of the ACH authorization requires either a direct phone request from me or written authorization from me. I did neither. I never called to cancel the ACH setup, nor did I submit any written request authorizing cancellation of the recurring automatic payments. Importantly, since the loan closed on XX/XX/XXXX, the ACH auto-draft had consistently worked without issue and payments were successfully drafted as required. At no point prior to Fay Servicing taking over this loan was there ever an issue with the ACH setup, cancellation, missed payment, or failure to draft funds. Despite having an active ACH payment arrangement in place, I received a letter dated XX/XX/XXXX, stating that my mortgage payment had not been received. However, I did not actually receive that letter until XX/XX/XXXX, after the payment issue had already escalated and after the alleged cancellation had already occurred. Upon contacting Fay Servicing customer service, I had a single conversation with XXXX representative regarding this issue, during which I was given multiple conflicting explanations about my ACH authorization and payment information. During that same conversation : I was initially informed that the loan had recently transferred and that my payment information did not transfer with the account. Later in the same call, I was told that the XXXX information actually had transferred but had been canceled internally by Fay Servicings payment department without my authorization or knowledge. I was told only the payment team could explain why the ACH was canceled. I was informed that customers are unable to speak directly with that department. The representative could not provide any documentation or explanation supporting the cancellation. Fay Servicing refused to waive the resulting late fee, despite acknowledging that the cancellation occurred internally within their system. I also requested to speak with a XXXX during that same conversation and was informed by the representative that she herself was the XXXX handling the matter. Furthermore, during that same call, I was required to reauthorize the ACH auto-draft setup. However, I was not required to provide any banking information, routing numbers, or account details because Fay Servicing already had all of that information on file within my account. This clearly demonstrates that my ACH information already existed in your system and that there was no issue involving insufficient funds, invalid account information, or missing banking details. At no point was my payment returned by my bank, rejected for insufficient funds, or declined for any reason. This situation appears to have been caused entirely by Fay Servicings internal handling of my ACH authorization. The XXXX payment was ultimately made over the phone during that same conversation, and my confirmation number for that payment is # XXXX. I also raised concerns that I never received meaningful advance notice that my ACH had been canceled. The representative stated that, according to their records, a letter had allegedly been mailed to me beforehand. However, no certified mailing, proof of delivery, or confirmation of receipt was available. I was simply told that their system indicating the letter was generated was considered sufficient proof. What is most concerning is that I have effectively been placed in a circular process where no one can provide answers or accountability. I was repeatedly told that only the payment team handles these matters, yet the representative stated she could not contact them directly for answers, could not obtain further information from them, and I was not allowed to speak with or email that department myself. As a result, I am left with no explanation other than that Fay Servicing internally canceled my required ACH setup, allegedly sent a letter, then issued a late notice and charged me a fee for a problem entirely created within your own system. That simply does not pass even the smallest test of fairness, transparency, or reasonable servicing practices. Additionally, I have attached screenshots taken on XX/XX/XXXX, after my XXXX payment was made, showing my login to the Fay Servicing portal. I currently have several loans serviced through Fay Servicing, yet this particular loan still did not appear in the portal as an active account and did not provide any ability for me to make a payment online. This further contributed to the confusion and inability to independently verify or resolve the payment issue through the online system. As a borrower who proactively complied with the required ACH payment setup specifically to avoid any payment disruption, I find this situation extremely upsetting and unacceptable. In my opinion, this conduct creates the appearance of an intentional process designed to generate unnecessary junk fees for clients. A mortgage servicer should not be permitted to internally cancel a required ACH authorization, fail to provide meaningful notice or access to resolve the issue, and then charge a late fee caused entirely by its own actions. Practices like this should not be allowed to occur. Accordingly, I am formally requesting the following : 1. Immediate removal and refund of the late fee assessed to my account. 2. Written confirmation that my ACH auto-draft has been fully restored and will remain active. 3. A written explanation detailing : o Why the ACH authorization was canceled, o Which department authorized the cancellation, o What notice was sent to me, o And why the late fee was not waived despite the issue originating internally within Fay Servicing. I have always acted in good faith to maintain my mortgage payments responsibly and on time. I respectfully request prompt resolution of this matter and appreciate your immediate attention. Sincerely, XXXX XXXX

Company response to consumer: Closed with explanation