Consumer complaint received 2023-08-14 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: Fay Servicing, LLC
State: PA

Complaint narrative:
Fay Servicing LLC has illegally opened an escrow account without my written consent and was informed from the XXXX County Tax Claim Bureau that I was in a payment plan. Instead of Fay Servicing LLC allowing me to reimburse them for the taxes they paid on my behalf without my consent they establish an illegal escrow account. 

Fay Serving LLC stated that there records indicate that you then reached out to Fay on XX/XX/XXXX by phone to advise that you have an agreement with the county and your tax payments are made apart of a repayment plan. However, Fay did not receive any documentation or notice in writing of the repayment plan with the county to update our records. As such, on XX/XX/XXXX Fay sent another letter to your mailing address advising of the delinquency amount. The letter does also indicate that if the taxes owed were not paid withing thirty ( 30 ) days of the date of the notice, Fay would pay all delinquent tax amounts owed including penalties. The letter also indicates that the loan would then be converted to an escrowed loan in which the monthly payment would increase. 

Please be advised that on XX/XX/XXXX, I exercised my right to pay my XXXX taxes in an agreed payment plan with the XXXX County Tax Claim Bureau. ( Please reference Exhibit A - payment plan agreement provided to me by the XXXX County Tax Claim Bureau. ) I was in a payment plan agreement prior to Fay Servicing LLC, generated letter on XX/XX/XXXX. Therefore, my XXXX taxes were being paid as agreed. ) Fay Servicing LLC claimed " However, on XX/XX/XXXX our records indicated that the delinquent taxes were not paid nor was Fay notified from the county of the payment plan for your tax payments. '' Please be advised that prior to XX/XX/XXXX, I had paid the following installment payments towards my {$3200.00} XXXX tax bill. Therefore, Fay Servicing LLC records on XX/XX/XXXX is inaccurate. ) ( Please reference Exhibit A payment plan agreement from the XXXX  County Tax Claim Bureau ). XX/XX/XXXX, I paid {$1500.00} as my first installment payment, on XX/XX/XXXX I paid {$650.00} as my second installment payment, and on XX/XX/XXXX I paid {$680.00} as my 3rd installment payment. On XX/XX/XXXX I went to pay my final payment of {$530.00} and was informed by Bill from the tax claim bureau that my final payment was paid by Fay Servicing LLC. 

Fay Servicing LLC claimed " Our records further reflect that on XX/XX/XXXX you reached out to Fay to advise that you were about to pay the tax amount of {$530.00} to XXXX County, however the tax office informed you that Fay had already made the payment. You also advised that you would be placing the {$530.00} back into the escrow and request with the tax office to submit a refund back to Fay for the amounts that were paid and then request for the escrow to be removed. However, no refund was received from the tax collectors. '' Please be advised that on XX/XX/XXXX, I contacted Fay Servicing LLC and a representative by the name of XXXX XXXX answered the call. I explained to XXXX that I was currently in a payment plan with the XXXX County Tax Claim Bureau for my XXXX taxes and that I was in the process of making my final payment however, I was informed by XXXX from the XXXX County Tax Claim Bureau that Fay Servicing LLC had paid {$530.00} as my final payment for my XXXX tax bill. ) XXXX apologized to me and stated Fay Servicing LLC was not aware that I was in a payment plan and asked if the XXXX County Tax Claim Bureau would be willing to reimburse Fay Servicing LLC for the taxes it paid. I told XXXX I could not answer that question on behalf of XXXX County Tax Claim Bureau I suggested that I call XXXX County Tax Claim Bureau and establish a 3 way conference call that way XXXX can speak with the representative at the tax claim bureau and ask her questions. 

The conference call was successful and XXXX, myself, and XXXX XXXX county tax claim bureau representative was all on the call ). XXXX asked XXXX if it was true that XXXX XXXX was in a payment plan agreement with the XXXX County Tax Claim Bureau for my XXXX taxes and if the XXXX County Tax Claim Bureau would be able to reimburse Fay Servicing LLC for the {$530.00} payment Fay Servicing LLC paid for my XXXX tax bill and the {$3400.00} Fay Servicing LLC paid for my XXXX tax bill. I asked XXXX if she can confirm if I was current or delinquent for my XXXX taxes. ( Exhibit XXXX ) is proof I was not not delinquent for my XXXX taxes. XXXX informed XXXX that the XXXX County Tax Claim Bureau will not be able to reimburse Fay Servicing LLC for the XXXX tax amount paid of {$530.00} nor the {$3.00}, XXXX amount Fay Servicing LLC paid for my XXXX tax bill. I then agreed to reimburse Fay Servicing for these 2 amounts. 

XXXX then asked XXXX if she can send her in an email my payment plan agreement. ( Please see Exhibit XXXX email from XXXX ). Once Fay Servicing LLC received proof from the county tax claim bureau that I was in a payment plan for my XXXX taxes they should of allowed me to reimburse them the {$530.00} for my XXXX tax payment. 

The fact that Fay Servicing LLC only paid {$530.00} towards my {$3200.00} XXXX tax bill should have alerted Fay Servicing LLC to do more verification. Clearly, they would have discovered that I had paid 95 % of my XXXX tax bill. Once Fay Servicing LLC, received proof from the county tax claim bureau that I was not delinquent for my XXXX taxes- they should not have paid them. And since they did pay them without me being delinquent and then put my taxes in escrow without my written consent is illegal and a violation of my rights. 

Fay Servicing LLC claimed that " Fay then advised you by phone on XX/XX/XXXX that Fay paid the remaining XXXX tax balance in the total of {$5300.00} - ( Please be advised that this amount is a typo- {$530.00} should be the amount stated. ) and the taxes for XXXX in the amount of {$3400.00} and that anytime there is interest placed on the taxes it is considered delinquent. ( Exhibit XXXX proves my XXXX taxes were not delinquent. ) Fay Servicing LLC claimed " However, on XX/XX/XXXX Fay placed a request to verify if there was any over payment for the property taxes and you indicated that you have the option to pay the taxes in three ( 3 ) installments and we received a copy of the money order you sent for {$780.00}. It was at this time we confirmed that the tax bill reflects three ( 3 ) installments, however we have not received a copy of a repayment plan. 

Please be advised on XX/XX/XXXX, I received my XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX bill in the mail. ( see Exhibit B and Exhibit C. ) On XX/XX/XXXX, I mailed a payment in the amount of {$780.00} as my Installment # 1 payment. ( see Exhibit D ). Exhibit C allows 3 installment payments to be made. Prior to me making my installment # 1 payment I called Fay Servicing LLC to inform them that I received my XXXX real estate tax bill and that I was taking advantage of the option to pay my XXXX real estate tax bill using the installment option. On XXXX, XXXX XXXX, Fay Servicing LLC paid my entire XXXX real estate tax bill in the amount of {$2300.00} without my written consent. I am not delinquent for my XXXX real estate taxes. 

Fay Servicing LLC, claimed " We further followed up then with XXXX XXXX XXXX if the payment of {$780.00} was received by you as Fay paid the full year for XXXX at the discounted rate of {$2300.00} and it was advised that the payment of {$780.00} had not yet been received. However, Fay opened a work order on our end to track any possible refunds. '' Please be advised that I was informed by XXXX the tax collector that all installment # 1 payments will not show posted until the end of XXXX beginning of XXXX ( See Exhibit D as my payment ). 

Fay Servicing LLC claimed that " Please note that Fay is unable to investigate the removal of the escrow account until the escrow balance is brought back positive. As of the date of this letter, the escrow balance reflects a negative {$4600.00}. We apologize for the inconvenience this has caused. However the escrow was not added to the loan illegally as per the terms of your mortgage and note Fay is able to pay any delinquent taxes on behalf of the account to protect our interest in the loan. Upon the escrow being brought to a positive balance, we ask that you please submit a request in writing asking for the escrow to be removed at that time. 

Please be advised that I have provided all factual evidence from Exhibit XXXX through D that Fay Servicing LLC has illegally opened up an escrow violating my rights. Fay Servicing LLC has stated that they were not aware that I was paying my XXXX tax bill via a payment plan. Exhibit XXXX confirms that XXXX from the tax claim bureau sent XXXX the Fay Servicing Representative an attached copy of my payment plan agreement. 

My XXXX tax bill was {$3200.00} which I paid 95 % of this amount in my established payment plan provided by the XXXX County Tax Claim Bureau. Considering Fay Servicing LLC only had to pay {$530.00} toward this entire bill should have alerted Fay Servicing LLC to do a more thorough investigation with XXXX County Tax Claim Bureau which would have provided them with my payment plan they initiated showing I was making my payments as agreed according to their payment plan. 

Fay Servicing LLC claims that I was delinquent for my XXXX taxes - Exhibit XXXX email from the tax claim bureau representative states that I was current for my XXXX taxes. 

Fay Servicing LLC states that it paid my entire XXXX real estate taxes because my installment payment has not yet been confirmed. - Exhibit D- shows my payment receipt of my installment 1 payment. 

Fay Servicing LLC is violating my rights and has place my taxes in an illegal escrow. I did not give written consent for Fay Servicing LLC to escrow my taxes therefore I want my taxes out of Fay Servicing LLC illegal escrow account. My mortgage payment went from {$630.00} to {$1400.00}, to {$1100.00} now to {$1100.00}. This is illegal. 

My evidence conclude I was in an established payment plan by the XXXX County Tax Claim Bureau which is my right for my XXXX taxes ( See Exhibit A ). I was not delinquent for my XXXX taxes ( See Exhibit XXXX ) nor am I delinquent for my XXXX taxes ( See Exhibit C ). I want this illegal escrow removed. I have rights. 

Sincerely, XXXX

Company response to consumer: Closed with explanation