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Plaintiff Barack O. has filed a lawsuit against Specialized Loan Servicing (SLS), claiming that the company regularly violates the Texas financial code by charging illegal processing fees to borrowers who pay their monthly mortgage payments over the phone.
SLS Allegedly Charges Illegal Mortgage Payment Fees
According to Barack, he purchased a home and secured a mortgage in September 2001. At some point after this, SLS acquired servicing rights to his loan, and he began making mortgage payments to the company over the phone. Barack claims he was charged $7.50 for making a mortgage payment to SLS over the phone on October 17, 2019. He claims that this fee was excessive, and is illegal under Texas financial codes.
Specialized Loan Servicing services mortgages across the United States. Although loan servicing companies are allowed to pass on charges from third-parties to consumers when these third-parties provide services to borrowers, they are prohibited from inflating these costs in order to pocket a profit. However, according to Barack and other consumers, this may be exactly what Specialized Loan Servicing is doing.
According to Barack’s lawsuit, by industry standards it costs SLS approximately $0.50 to process a mortgage payment made over the phone. However, the company is allegedly charging between $7.50 and $12.50 to consumers for these payments. These fees are often referred to as pay-to-pay fees, and are not allowed under many financial laws. Additionally, these mortgage payment fees are not disclosed or included in Barack’s mortgage agreement.
Barack’s lawsuit seeks to recover damages on his own behalf, as well as on the behalf of other consumers who have also been charged illegal pay-to-pay fees by SLS.
About Pay-to-Pay Fees
About Pay-to-Pay FeesSLS is not the only mortgage servicer to be accused of charging illegal mortgage payment fees when consumers make mortgage payments online or over the phone. Citibank and its store card unit have also been accused of charging pay-to-pay fees for consumers who made phone payments.
According to Citibank customers, the bank may be calling these charges “processing charges”, and assessing them for payments that are posted the same day. However, some consumers have claimed that they did not need their payments to be posted the same day, and free phone payments that would have posted later may have been available.
Consumers have accused Green Tree Servicing of similar incidents of pressure. While other forms of payment may have been free, customers of Green Tree claim that the company falsely represented a service with a $12 processing fee as the only way to make mortgage payments. Wells Fargo and HSBC Banks were also accused of charging excessive fees.
According to the Consumer Financial Protection Bureau, some companies may be misleading consumers about pay-to-pay fees, either by misrepresenting the purpose of the fee, or by pressuring consumers to pay additional fees to post their payments the same day, even when that is not necessary. Other companies may be representing paid options for making mortgage payments as the only options available to consumers, even when there are free options.
Consumers who have been pressured or misled into making mortgage payments with pay-to-pay fees may be eligible to hire an attorney to review their case and determine whether they qualify to file a lawsuit. Additionally, consumers who have been charged excessive pay-to-pay fees for paying their mortgage over the phone or online may be eligible to hire an attorney if these fees were hidden fees and not disclosed in their mortgage agreement. Victims who pursue litigation may be able to recover reimbursement for these fees, as well as additional compensation.
Barack’s SLS Pay-to-Pay Mortgage Lawsuit is Case No: 1:20-cv-00701, filed in the United States District Court for the District of Colorado.
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for informational purposes only.
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19 thoughts onSpecialized Loan Servicing Accused of Charging Mortgage Payment Fees
I get fees after fees after fees, 12$ to make phone payments, they never report when I make on time payments only report late payments, they don’t have a direct contact, always have to explain over and over! Balance is still too high after being with them almost 12 yrs!! I would love for someone to look into my situation with SLS
SLS returned my payment to my bank because it was $58.00 short (sent the same day.) They would not use the $58.00 in “suspense” as I had calculated. For this they reported a late payment. Their report alone dropped my credit rating 110 points. I am refinancing and this is a problem. I am interested in joining all class action suits in process.
Account was not serviced correctly
Threatening letters to foreclose/ short sale
My ability to access CMC was removed after I went in to Forbearance 4/01/2020
My ability to make payments to CMC was removed at this time
My ability to contact CMC were now directed to a unknown company SLS
My calls to CMC were forward to SLS
account was moved to a new servicer SLS without notice
upon realizing SLS was the new contact and servicer for this loan, there have been 5 different people assigned to this account. I have had no success to reach any of them. I have not received a return phone call from a supervisor as I have requested many times on this account. During 04/20-4/21 period of time. (always Customer Service Reps with 0 details to give).
When calling I get incorrect balance details. Different rep each call= many inaccurate numbers and details with no supporting documentation to prove how the balance is true and correct on this account.
As of 4/2021 there has been not one statements in 12 months that had accurate balance with detailed payment history on it for this account.
The reps who have answered the phone have been Rude,unhelpful and a huge lack in knowledge when it comes to answering questions to an account holder. Unable/Unwilling to provide me with the correct details and documentation for this account in 12 months. The reps were unwilling to go over payment history and calculate the amount that has been paid at that time.
I have filed 2 formal complaints one in process.
I have had hud intervene in a 3 way call with the hopes of resolving this matter. (With no success)
SLS has provided false information to the credit agencies. Reporting delinquent-late balance of over $5,000
SLS has stated 4/8/2021 that the foreclosure process will begin 4/8/2021
2nd appraisal on my house for quick/short sale done in 3/2021. listing at $319,000 as is sale.
Then charging me the fee of those appraisals that I had no knowledge or authorized them to do.
Some unidentified man at my house taking pictures of my house and the neighborhood. (Violation of my privacy). which I was not notified, nor did I authorize this.
SLS added fees to my account, with no documentation to show any information for the fee, I was given 2 different reasons, 2 different documents,same fee . (I’m confused).
They have added to my balance 175.00 without documentation providing the facts of this fee. (inaccurate)
Rep provided verbal response to 175.00 fee- it was for escrow shortage.
There is $115.00 dollar charge that was explained to me as being a legal fee?? while also stating it was an appraisal fee?
I have sent certified letter to Colorado office with no results nor have I have been contacted.
I have sent all supporting documents to SLS (Bank Statements) to verify payment history.
I have received a statement with a balance of $10,385.00 being owed for 5/1/2021.
I have received a letter from them 4/20/2021 stating I refused the Modification to this account. I did they failed to provide and disclose all facts that pertaining to this modification. I only agreed on the terms that were explained to me at that time 12/2020. The document states that I should not ignore any foreclosure notices, that I needed to contact them immediately and be prepared to take steps to respond to any and such notices and protect my interests. Basically saying until this account is current they are continuing with the foreclosure process. Document received 4/20/2021.
House Payments are 1617.00 a month. All taxes insurance included……………..
Here are the facts and documentation that I have about this Mortgage loan.
Went into forbearance 4/1/2020, With all payments starting in 2018 being current, never late.
April, May, June, July, Aug – no payment made
Sept 25th 2020 made a Payment of 1618.00 on SLS website.
Sept 27th 2020 I seen they reversed the payment back into checking account.
Oct 2 2020 I call and ask why the payment reversed? Their reply was I had to call in to them for the payment to be accepted, they would waive the 12.50 fee, online payments were not allowed at this time.
So ok I called them every month to make payments, so their information should be accurate up to date and have correct balances.
From Oct-2-2020 these are the payments made that no one could verify for me.
10/2/20 1617.22
10/23/20 1617.22 .
11/24/20 1600.00
11/25/20 100.00
12/10/20 900.00
12/11/20 1000.00
12/23/20 784.27
02/08/21 1615.00
03/02/2021 1522.27 This is where I am told the facts of part of the modification, added 4.5 years-denied
04/05/2021 1614.98 =
04/12/21 538.38 Also had 1076.00 in suspense account at this time. Could not be applied till a full payment was made. So that is why I only paid 538.38 so I could then use my money just sitting in a account???
So the amount to be applied with the 538.38 and 1076.00 in suspense was $1614.38
04/19/21 1617.22
04/20/21 3100.00
04/21/21 704.25
04/26/21 1250.00
I have received a statement with the balance being over 10,000 and a letter to foreclose
12 months at 1617.22=19,406.64 with taxes, insurances everything included in payment.
as of 04/26/2021 the total amount that they have received from me is well over the 19,406
They have no documentation of this being true and correct and is in process of foreclosure and and a remaining.
This company has illegally and fraud gently mishandled this account and reported inaccurate information to the credit agencies, while being denied another loan from another company to refinance due to this. Also they are foreclosing on my house as of now. They can not provides facts and details about this account while mismanaging this account and not keeping it up to date with accurate balances for over 12 months.. I have the facts and details, so do they I have provided bank statement verification to them.
balance of 10,385.00 Due 5/01/2021 statement. I believe this company has committed some illegal crimes on this account and I the account holder is suffering from it while they still have no supporting documents with any kind of detail showing me how is the balance over 10,000. I have called this company enough to get the feel of what’s going on, and how this company has mishandled, misused of my personal information with false statements and no documentation to support their inaccurate reportings. I have decided it was time to seek some legal help as I have had to deal with this for over a year now. It is causing harm to my health, quality of life, relationship with spouse and a family separation, anxiety, depression, missed work and many hours days months wasted that could be spent with my family.
If you have any interest in helping me with this case please respond to me. I have all factual supporting documents to support all details in this letter. I have been dealing with this for over a year I know someone else is going through the same. I don’t want to be silenced in the background, I want my voice to be heard and for this company not to put anyone through this amount of stress due to their negligence. I have reason to believe this is no accident. I believe they know what they are doing to people with the hopes of most giving in and doing what they say out of fear. They need to be stopped. This happening right now to other individuals.
This is not a time to be treating the people that feed their family this way. We are the reason they have a job, and they are taking from the very people that keep food on their table. Very disturbing. How I have been treated in the last year from this company. they are insulting my intelligence. and causing a lot of mental stress.
Thank you for taking the time to read this. If you are interested in helping me in this case please contact me:)
They have literally done the same thing to us as well. When they first started charging for loan servicing, it was much cheaper. It just recently took a huge jump to $7.50-$12.50. You cannot get anyone on the phone that knows anything. They are almost exclusively foreign callers in a foreign call center reading from a script.
We cannot make any payments on our home unless we make them through Western Union. They refunded my previous two payments after withdrawing the funds and having them for three weeks simply because they demand that I send payments via Western Union.
We got behind a few times in the past. This SLS threatened us with foreclosure 3 times. Each time we got help to get caught up. Now we don’t get behind but after living in the same home for 19 years our balance is still not were it should be, only 41,000. From 52000
I been trying to get help since cover 19 start all I get is run around none of the employee knows what they’re doing or when you call phone answering stuff are in the meeting for half the day trying to learn how to scam customer
My ex and his associates steered me into the properties I bought as we as the mortgage lender and surrounded me in my condo and mothers neighborhood as well as work with his associates and gang members. He made me lose my job and took our daughter Mikalah Newman away when I sued one of the lenders and my employer, his co-partner. He came into my life via so-called friends and they are his partners in locating people vulnerable to loosing their homes or investment property. They also knew he would take my daughter away a d of his status and fang connections as well as political connections and with the court. He is also in social services and may have adopted out our daughter cause he is too busy making money and or taking money. He owns more than 5 homes around my mom and I learned my chdhood friends know him well so they knew that he would also harm me a d my daughter. The social worker Colleen Duffie and him as Michael Weatherall resided in a home behind my mom and may have came in with or without someone’s aid to harm us or stage events of abuse like his associates did at my condo. He also replaced my daughters principal, qdmin, and school teachers to falsify documents and owned or operated the medical group at axminster medical group, also works with harbor ucla , and Providence in Torrance. So each time I went to the doctor I would not get help. Furthwr he has many contacts within the LAPD and the Sheriff to write false reports. Now I’m facing foreclosure and have to file complaint again. It appears he may make money from foreclosure fillings and I will file a complaint with Consumer Proteftion Bureau. He stalked me when I left a complaint with the DRE in Sacramento and had me arrested thereafter. I traced that Officer to Texas. So it appears he sends team of persons to stalk, harass, and harm victims in every city and state. Be careful coming to Los Angeles and near the small cities between Monterey through San Francisco,. Although its very beautiful, I was trapped in several communities like camp grounds where sex trafficking occurred. They have damaged and stolen 14 vehicles, 37 computers, 34 plus cellphones, and 30 plus drivers license……basically holding me hostage.
Real funny COW!
We have had major problems with SLS for a few years now? They sent me a notice that I’m in foreclosure, and that I am in arears for about 4 months. I have proof from both my bank, and SLS that all my cashiers checks receipts have been cashed. I have been going back and forth with SLS for months now, and no one wants to help me or listen to me. and these people can’t even provide a decent statement that shows my so called “arears”. I have filed chapter 13, and now my payments are twice the amount they used to be. I contacted SLS again on Oct.23rd and spoke to a woman who told me she see’s exactly what’s wrong with my account…She said they have been adding ALL my payments to my “escrow” account, and no matter how much extra I pay, it will NEVER show that we’re not in arears! she said she was opening a “ticket” on my account, and that she would “work on the account, and bring it all to where we’re paid up, and there’s no sale date for my home, and please call back Monday (26th) and it’ll all be corrected”. Monday morning came, I called, and NO ONE KNOWS ABOUT ANY DAMN TICKET! I’ve been in my home over 30 years! and now they will sell it. I’m disabled, and on SSI, I get under $1000 a month, and now I can’t afford my house payment. My home is scheduled to go to auction sometime in Nov. 2020. I need help.
I have the same problem and not get anywhere with this crock SLS
I also fined chapter 13 and they got paid by the court still say I am delinquent I asked my bankruptcy Attirney to get it fixed they won’t respond SLS known and popular for being such. Terrible fraud company
They just wants to force fraud foreclosure without any real reason
I been trying to get help past 6 month with my loan nothing but run around the scam
My loan was acquired by sls. I pay $7.50 each month to make my payment (excessive) now COVID time…requested a DEFERRAL and was told I got it approved and did not have to make payments until July 2020 only to find out they did a forbearance plan and all of a sudden I owe over $3,000 and if I do not pay it they’re going to report to the credit bureaus delinquencies unless I apply for a modification. I’m taking money from my 401k just to go ahead and pay them off and in six months I will definitely be looking to refinance my home. They have had the worst customer service I have ever dealt with and I call and leave messages and no one ever calls me back. I called today to check on a payment I made June 2020 because I was told if I did not make the payment they would not work with me and that I would receive a call back July 1st. Today is July 7th no word from them.
Specialized Loan Servicing did not process my check I sent in March 2020 for my April 2020 mortgage payment. Then they did not send my May mortgage statement. They tried to charge me late fees, however I messaged Toby Wells, the CEO, after calling only to get automated call back messages. The reps say they are not allowed to give out their company name when you call which I find alarming as I want to make sure i dialed the right number before giving my information. Once I got a rep she stated my check was probably laying in the company lock box where payments go in CA. This is very disturbing to say the least. This company has a lot of issues. I filed complaints with the Consumer FInancial Protection Bureau. I fought for two months to get things corrected so I did not have to pay late fees. My hometown bank did not charge me to stop payment on my check and I told SLS that I would not pay one cent more than what my normal mortgage payment is for each month. I made two payments April 29th for April and May due to their total lack of working on the issue. They say they do not send out their mortgage billing statements until the 17th or the 20th of the month depending on who you speak with, but yet on our payment history, we receive our billing each month here in MD way before that and have our payments post at SLS before they supposedly send out their billing statements which can’t be so that is a lie. This is the worst mortgage servicing company ever. I know they have a lot of people who have problems with them. I message Toby Wells through linked-in as that is the only way to get a message to him and I tracked him down on my own. I have never heard of a company that does not have their reps answer their phone with their company name as well as their name so you know which company you have reached and to whom you are speaking with and that is horrible unacceptable lack of customer service to say the least. I am fed up with this company and its unfair practices for sure
I NEED YOUR HELP PLEASE I FEEL THAT DITECH AND GREEN TREE FINANCIAL HAVE BEEN CHARGING ME FEES TO PAY THEM ALL OF MY MONEY THAT REALLY TRULY LEFT ME WITH NO MONEY FOR ANYTHING AT ALL PERIOD PLUS THEY DENIED ME THE HARP LOAN BECAUSE THEY TOLD ME BE CAUSE I LIVE IN THE STATE OF INDIANA AND I NEED YOUR HELP PLEASE HELP ME WITH THESE PEOPLE I DON’T KNOW WHAT TO DO TO GET THE HELP THAT I NEED SINCE I HAVE NO MONEY OF MY OWN TO EVEN GET A LAWYER TO HELP ME PERIOD THANK YOU KINDLY FOR YOUR TIME !
PLUS I WOULD LIKE TO MAKE IT VERY CLEAR THAT I AM NOT YELLING AT YOU BECAUSE I AM USING ALL CAPITAL LETTERS I HAVE A HARD TIME SEEING THE SCREEN WITH THE LITTLE LETTERS SO PLEASE FOR GIVE ME FOR USING THE CAPITAL LETTERS THANK YOU KINDLY