BOA Failing to Credit Mortgage Payments?

We are receiving more and more calls to our office from borrowers regarding the failure of banks to honor loan modification agreements.  We have also started to receive calls complaining that BOA has been failing to timely and properly credit borrower loan payments.  Borrowers loans have been sold off within the banking industry so many times, servicers can no longer perform the simple task of processing a mortgage payment.

Given the terrible customer service at BOA, other banks and their servicers, borrowers are having a difficult time getting a hold of anyone at the servicer who will listen and then fix the problem.  The complaints we have been hearing involve servicers failing to credit payments on time and the failing to credit payments at all.  In one case the borrower had two loans with but the bank only credited payments to one loan sending one into foreclosure.

These failures of the bank's servicers have dire consequences for borrowers.  Borrowers are assessed late fees month after month and the bank makes negative reports to the credit bureaus.  In extreme cases where the bank fails to credit payments made, it can lead to a wrongful foreclosure.  Borrowers have to spend hours in phone hell with the bank's servicers with little relief.

Borrowers have rights under RESPA, the FCRA and the FDCPA.  It is important that borrowers document their problems by sending letters (certified is best) to the servicer. Do not rely solely on the phone calls you make to the servicer.  Borrowers need to also exercise their rights under RESPA, the FCRA and the FDCPA.  The servicers and the credit bureaus may not properly respond to notices sent under these federal laws, however, borrowers always have the right to file a federal lawsuit to enforce these federal consumer protection laws.