Complaint Review: America's Servicing Company

After many months of writing to federal and state agencies, this ongoing criminal enterprise was forced to refund the thousands of dollars they stole from me + interest.

My advice - check EVERYTHING these criminals send you. Be especially vigilant when selling a property. Make sure you understand every detail of your loan payoff. Make sure they don't invent thousands of dollars of fake fees, like a "Corporate Advance Fee" to rip you off at settlement time. I know there are a lot of numbers and a lot of forms to sign at settlement, but be very skeptical if your loan was "serviced", and I do use that term loosely, by Americas Servicing Company.

Criminal enterprises like this one thrive because few have the determination and stamina needed to expose these frauds and fight them. I wonder how many millions of dollars this criminal enterprise has netted from padding loan payoffs.

Write to every Federal and State agency you can think of. Keep writing when they tell you they don't have jusisdiction. Insist on finding someone to take action. Don't bother calling these criminals directly. It doesn't help you. Have everything in writing.

Its only when these criminals feel cornered that they will act. In my case, they had to weigh paying me back with interest vs. paying me back with interest + attorney's fees!

For anyone that has the misfortune to have their loan transferred to this criminal enterprise, refinance with someone else ASAP! You can't imagine the pain and suffering you'll be saving yourself from until you are one of the thousands of their victims.

Thus far, I have filed complaints with:
- the Better Business Bureau
- the Maryland State Attorney General's Office
- the Office of Thrift Supervision
- the Federal Trade Commission
- Internal Revenue Service
- Wells Fargo senior management

I got the following advice from the FTC:

Thank you for your letter regarding your experiences with your mortgage. I can assure you that the Federal Trade Commission is concerned about the practices you describe. Because many of the terms of a particular mortgage are governed by state rather than federal law, however, a private attorney familiar with the state laws governing mortgages probably would be in the best position to give you immediate relief. You, therefore, may wish to contact the local bar association, or the local Legal Aid or Legal Services office, for a referral to an attorney who specializes in this area. Other organizations, such as Legal Counsel for the Elderly, may also be of assistance. In addition, you may wish to contact the state Attorney General's office, or a local consumer protection agency, for assistance.

In addition to any causes of action you may have under state law, a number of federal laws which the Commission enforces may apply. In particular, the Commission enforces compliance with the Truth in Lending Act ("TILA"), 15 U.S.C. 1601 et seq., and its implementing Regulation Z. Under the TILA and Regulation Z, creditors are required to provide consumers with written disclosures of the costs and credit terms associated with loans. Among the required disclosures are the annual percentage rate, the finance charge, the amount financed, the total of payments, and the payment schedule. Generally, creditors must make these disclosures before consummation of the credit transaction. However, in mortgages involving the purchase or initial construction of a home, creditors must make good faith estimates of these disclosures not later than three days after receiving your written application for financing. In addition, in variable rate transactions (where the rate can increase or decrease during the loan) special disclosures are required about the variable rate aspect of the financing. Also, under an amendment to the TILA, creditors making certain high-rate, high-fee loans must provide certain additional disclosures and comply with certain prohibitions required by the Home Ownership and Equity Protection Act ("HOEPA"). Under some circumstances, the TILA provides a private right of action against creditors for disclosure and other violations. Consumers may file lawsuits for actual damages and/or statutory damages, plus costs and reasonable attorney's fees.

The Equal Credit Opportunity Act ("ECOA"), 15 U.S.C. 1691, and its implementing Regulation B, also may apply to your situation. The ECOA and Regulation B forbid a creditor from discriminating against a person on the basis of sex, marital status, race, national origin, religion, age, receipt of public assistance or exercise of rights under any federal consumer protection statute. In addition, the law requires a creditor to notify the applicant of its decision on whether to extend the loan within 30 days of receiving a completed application. The ECOA gives a consumer the right to sue a creditor for actual damages and penalty damages up to $10,000. If the suit is successful, the consumer will be entitled to collect attorney's fees and court costs. Section 202.14(b) of Regulation B and Section 706 of the ECOA explain your rights under the ECOA.

The Commission also enforces the Federal Trade Commission Act ("FTC Act"), 15 U.S.C. 41-58. In interpreting Section 5 of the FTC Act, 15 U.S.C. 45, which prohibits unfair or deceptive acts or practices, the Commission has determined that a representation, omission, or practice is deceptive if (1) it is likely to mislead consumers acting reasonably under the circumstances; and (2) it is material; that is, likely to affect consumers' conduct or decisions with respect to the product at issue. In a statute that became effective in August 1994, Congress amended Section 5 of the FTC Act to provide that an act or practice is unfair if the injury to consumers it causes or is likely to cause (1) is substantial; (2) is not outweighed by countervailing benefits to consumers or to competition; and (3) is not reasonably avoidable by consumers themselves. In determining whether to take enforcement or other action in any particular situation, the Commission may consider a number of factors, including the type of violation alleged; the nature and amount of consumer injury at issue and the number of consumers affected; and the likelihood of preventing future unlawful conduct and securing redress or other relief. While only the Commission can enforce the FTC Act, many states have comparable statutes, some with a private right of action. Private rights of action also may exist for other claims under state law, such as fraud.

In addition, you should know that many mortgage companies or mortgage entities may give their customers oral or written lock-ins of the interest rate and the number of points (a percentage of the loan amount) that the lender will charge the customer for financing. These lock-ins are most often for a specific period of time, usually 45 or 60 days. If the mortgage loan is not consummated within this period, the lock-in expires and the consumer must renegotiate the terms of the loan. Written lock-ins are generally preferable to oral lock-ins, and it is best if they are signed by the mortgage company or mortgage entity. Lock-ins are not specifically covered by the TILA or ECOA. The question of whether a particular lock-in is binding on the mortgage company or mortgage entity is generally determined under the applicable state law. You may want to discuss this matter with your state consumer protection office, state Attorney General's office, and/or state banking commission.

Finally, you may also have rights under federal law concerning your escrow account. An escrow account is a fund used by mortgage companies and mortgage entities to keep money paid to them by consumers that is beyond the consumer's current monthly principal and interest mortgage obligations. This fund is set aside for payment of property taxes and hazard insurance, and sometimes other similar amounts, as they come due during the year. Some mortgages require escrow accounts and others do not. Escrow accounts are covered by the Real Estate Settlement Procedures Act ("RESPA"), which is administered by the Department of Housing and Urban Development ("HUD"). If you have questions about your escrow account, you may want to contact HUD at: Department of Housing and Urban Development, RESPA and Interstate Land Sales Division, 451 7th Street S.W., Washington, D.C. 20410. If you think you are being overcharged for your escrow, it is best to continue paying the full amount due each month; at the same time, you may wish to contact the company, HUD, and/or state agencies regarding the problem. If you fail to make all payments as required, the lender or servicer may declare the mortgage in default, impose additional fees, and start foreclosure proceedings. Also, many mortgage companies or mortgage entities will refuse to accept what they consider to be a partial payment. They may return your payment and charge you a late fee as well. For these reasons, it is important to continue making your full payment on time, but also discuss questions about your account promptly.

Thank you for bringing this matter to our attention. We will contact you in the future if we need additional information, and we hope the information in this letter is helpful.
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Based on this information, I have added the Department of Housing and Urban Development to the list of agaencies with which I have filed a formal complaint.

I advise everyone who does business with this fraudulent enterprise to file complaints with all the above agencies. Maybe we can put these criminals out of business.

Thank you for posting your experience. I'm in the process of refinancing my loan with ASC (thank god) and am going to pay special attention to the payoff amount they give my mortgage banker to make sure it's not lots more than the payoff amount on my most recent statement.

My experience in a nutshell:
They didn't send me proper notification of my loan transfer which occurred in January. My previous loan servicer gave me a new address to mail my February payment to. I mailed ASC the payment which they refused to credit to my account until April 20th after TONS of hassle on my part. And I do mean TONS. I spent probably about 4 hours out of my work day for at least 5 days filing the proper reports, calling, blah blah blah... I filed a complaint with the FTC, the BBB of Greater Maryland, the Attorney General of Maryland, and more. I sent a qualified written request to ASC under RESPA guidlines.

All mail to ASC's three addresses was done certifed mail, return receipt requested. I called them about 18 times and documented every single call. Finally they credited my payment April 20th, like I said. Actually they credited TWO payments to my account (weird).

Then I got a response from the BBB of Greater Maryland with documents showing that ASC responded to the BBB saying they sent me proper notification of loan transfer and included a copy of a fax and a letter supposedly mailed to me which I had never before seen in my life. So they lied right there or they seem to have lots more problems with the United States Postal Service than anyone else I've ever met or heard of.

Then they corrected the mistake of crediting me two payments instead of one. Still haven't heard from the FTC, Atty Gen. or anyone else, which is okay with me since my problem is now solved and I'm leaving the company, but I still would like to see follow-through because I would like the governmental agencies and business regulators to see that ASC does this kind of bad stuff ALL THE TIME.

Just most people are too busy, uninformed, afraid, etc... to do anything about it and end up losing their homes and worse. How can these people at ASC sleep at night?