I had a mortgatae thru EMC and refinanced in April of this year to avoid prepayment penalties. My new mortgage company paid this account in full and the check was signed by an EMC rep April 21 in Irving Texas. Unknown to us and the new mortgage company EMC paid insurance for a year that they did not include in the payoff letter to notify that the payment should have been adjusted.
They sent the payoff letter out two days after they paid the insurance. The payoff was not applied until May 10 which know they said accrued interest owed. I spoke with a female supervisor May 11 to identify why we were receiving a statement letter when the account should have been closed.
The supervisor advised me that the account could not be closed until the insurance amount they paid was refunded. I conferenced called my insurance company with the EMC supervisor and my insurance company agreed that they had received a payment from EMC. All parties agreed to refund EMC the insurance amount and the supervisor said she was going to close the account and we would receive a confirmation letter closing the account.
The payment was sent by my insurance company on May 11 but according to EMC it was not posted until June 01 giving another several weeks that they left the account opened to accrue fictitious interest that they were applying as due.
My wife received a credit report the first of June that reflected a 30 day negative by EMC Mortgage. We contacted EMC on June 06 and spoke with Jack Crane a supervisor at 0945 hrs PST. He stated the late was for the month of May and we questioned why, when the account was paid in full and should have been closed.
He reviewed the notes on their computer and apologized for the error and stated that everything would be handled, the account closed, and the credit companies would get a reversal letter. On June 25 we got another statement letter in the mail from EMC.
I contacted Chris a supervisor under Anthony Askew at 1003 hrs PST. I questioned the non closure of the account and he said there was a balance pending. I questioned the balance and he stated it was interest acrrued due to the full payment not being made. I advised Chris of the conversations I had with two other Supervisors prior to speaking to him and their stated course of action. He said he would have someone call me to see what they were going to do about the account.
When I asked to speak with his supervisor or a higher up he refused and said no one was available. When my wife asked Chris if he thought it was fair that they were keeping this account open because of additional interest they were applying each month because of their mistake. He replied yes it was fair.
Chris could not explain how the additional $ 2000 mysteriously has shown up on our, should have already been closed in April-May account. He did however confirm that the reversal letter had already been sent. EMC is admitting fault because if there was no error the letter of correction would not have been sent to the credit companies.
This is an apparent practice by EMC that they apply payments weeks later so that to accrue additional interest that they pass on to the consumer. I am sending this complaint to every entity I can think of to address the consumer ripoff practices by EMC.
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