This invaluable consumer information comes to us courtesy Katie Porter Credit Slips. I think I know what most readers would rather buy….
From Credit Slips:
Question: What do phone sex and mortgage servicing have in common?
Answer: They both cost $9.99 a minute.
This isn’t a joke. It’s a real-life example of the difficulties that consumers sometimes face in working with their mortgage servicers. As part of a study of mortgage claims that I’m conducting, I came across an objection to a mortgage claim where the debtor asked for the court’s help to avoid paying $9.99 a minute to talk with his mortgage servicer. The mortgage company had filed SIX duplicate claims, each for an identical amount. These claims were not marked as amended claims, so the debtor wanted to ensure that he only was on the hook for his mortgage debt one time. Since these claims were obviously mistakes, the question is why didn’t the debtor just contact the creditor and tell them–“Hey, stop spitting out these claims and withdraw the extras and let’s just get on with this bankruptcy.” In fact, the debtor’s attorney and the Chapter 13 trustee both tried to do just that. They called up the creditor at the listed phone number, but were directed to call another number if they needed actual assistance. The hitch–that other number required them to pay $9.99 A MINUTE. Frustrated, the debtor’s attorney went the formal route and filed a claims objection…..
I must say that I thought that I had already seen it all in my review of 1700 recent mortgage claims. I’d become hardened to $50 “fax” fees; $75 “payoff statement” fees; and the $500 “bankruptcy” fees as part of the costs of mortgage default. But the $9.99 per minute was a new one, even for me. Of course, this situation could be a mistake, a typo on a form. Or the mortgage servicer could have identified a profitable revenue stream by charging consumers for information. After all, a consumer can’t get rid of their mortgage servicer for poor customer service; the servicing company works for the mortgagee. Regardless of intent, the effect is the same: it is harder for a debtor to reach out to a mortgage creditor, and thus harder for a debtor to reach an agreement. At $9.99 per minute, talking with your mortgage servicer is an expensive option.
The post provides an image of the offending document, but I had trouble resizing it to see the germane section. Perhaps you will have better luck.
