Mortgage Servicing Fraud
occurs post loan origination when mortgage servicers use false statements and book-keeping entries, fabricated assignments, forged signatures and utter counterfeit intangible Notes to take a homeowner's property and equity.
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I have a mortgage with Chase.
Since day one I have paid by draft, and over paid my payment by 130-170 dollars each month, the first few years they applied the extra draft payment to the principle, however every 3 months they charged me a late fee because the due date was on a sunday and they drafted on Monday costing me 16.75 in late fees. Since I draft it took a while to notice.
I called and complained about the late fees and was told that they couldn't change my draft date, that I would have to do it online. I tried, however their system would not let me.
Finally out of frustration about the late fee, I set up a draft at the first of the month for the regular payment amount. So I had the payment drafted on the first, and then a regular payment plus 170 drafted on the 16th.
They never applied the second payment to principle, it took me a few months to notice that my due date kept getting futher and futher away. costing me interest that I should not have been paying. I contacted the company and they claimed to go back and apply to payment correctly and change the extra payment to count toward principle. About a year later I noticed on my statement that once again my due date was over a year away. I contacted them a second time, and told them I felt I was being cheated, and once again the agreed to move the payments to principle and send me a payment history. That was 6 months ago, and I have found that for the 3rd time Chase Mortgage is only using the extra payment to pay a month ahead and not pay down the principle.
Being this has happen three times, do I have any legel action I can take agaist a company that insist on cheating its customers.
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Paula- Yes, you probably have a cause of action.  The problem the remedy will be limited to your damages.  Your damages will be the late fees that were charged.  As a result it would most likely cost you more in legal fees then what it is worth.


Your second option is to send them a Qualified Written Request (QWR).  RESPA is the federal statute that governs these sorts of things.  A RESPA QWR has the force of law and you can do it yourself. 

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Nye Lavalle
Damages would also included the extra principal since loan not properly amortized
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May I suggest a small claim action against them depending on the state you live in.  I have been very successful against CHASE (I have a judgment against them) and Citi Bank settled out of court with me.

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The Equitable One

Seems to me if you file suit and win attorneys fees could also nbe included in your claims for damages.

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