I work for a law firm. A new client calls one day to explain her problem. Her husband passed away two years ago. She kept paying the mortgage. One day, she got a letter explaining that her husband had insurance that paid off the mortgage when he died, so her balance was zero. They returned her last payment. There was no mention of the two years of payments between his death and the most recent one. About three months after that, they foreclosed on her house.
Her attorney calls the legal department of the company to determine the issue. He’s on speaker, so I hear it.
[Attorney] introduces himself to the customer service representative and gives them all the necessary information.
Representative: “You need to speak to Legal. Their number is [number].”
Attorney: “That’s exactly what I just called.”
Representative: “No, this is customer service. Please call the other number.”
[Attorney] ends the call and calls the same number. The same representative answers.
Representative: “Legal Department!”
[Attorney] explains the situation.
Representative: “I can help you with that. I see that there have been no payments made in five months. Why is that?”
Attorney: “Because your company sent a letter stating that there was insurance that paid off the mortgage and left a zero balance.”
Representative: “That is correct, but she should still have been making payments. The insurance takes three to six months to credit.”
Attorney: “He died two years ago.”
Representative: “Sometimes it takes longer.”
Attorney: “You need to dismiss the foreclosure suit, or I am turning this over to the Attorney General’s Office.”
Representative: “Let me get my manager.”
[Attorney] repeats the entire conversation.
Manager: “So, that leaves a total due today of [missed payments PLUS late fees]. That is good until the fifteenth of the month. When can we expect payment?”
Attorney: “You can discuss that with the Attorney General’s staff.”
The entire mess is turned over to the Attorney General. They start a massive investigation of the entire company. Lots of legal steps later, the foreclosure is dismissed and a refund is sent to our client for all the payments between her husband’s date of death and the last payment, the late fees are cancelled, and an additional $1,000 is sent to cover her legal fees. Then, we got a final email from the attorney for the mortgage company.
Company Attorney: “We have sent a check in the amount of [amount] to your attention. It covers payments made after death, late fees paid prior to the commencement of the lawsuit, and attorney fees. Finally, I would like to say that this could have all been avoided if your client had been more patient. While I appreciate that she was emotional following the death, we cannot move as quickly as she might like. In the future, I would appreciate a reasonable amount of time to address issues.”
I wonder why the Attorney General’s office fined them a bunch of money. Just can’t figure it out.