Banks lend money so that borrowers can purchase homes. However, often, these banks do not service the mortgage accounts of their borrowers. Instead, they hire “servicers” to oversee the day-to-day activities relating to these accounts. These activities include the collection of monthly payments.
Borrowers commonly set up an automatic payment system where, each month, their mortgage payment is automatically paid from a personal account. Unfortunately, problems arise when banks change their servicers. When new servicers take over the servicing of mortgage accounts the transition from one servicer to another does not necessarily go smoothly. Among other things, a borrower’s automatic monthly payments may stop without notice. This can cause borrowers to make late payments and be charged unfair and unlawful late charges.
FBFG is presently investigating the assessment of such charges. If this has happened to you, please contact FBFG to discuss your legal options. FBFG has significant experience prosecuting claims against mortgage lenders relating to improper charges assessed against borrowers.