Aurora Loan Services increased our escrow payment at the beginning of this year by $1,400 a month. The escrow payment went from $500 a month to $1900 a month (this, on top of our monthly pricipal and interest payment). After many phone calls, they finally saw they made a mistake in the calculation. They doubled our summer tax bill, instead of adding the summer amount and the winter amount.
They still said they needed to increase our escrow payment each month by $400 a month now. Now our escrow payment is $900 a month. They will not budge on the amount. They said they need to keep at least 2 more months of escrow payments in advance, and our account would be short.
When we took out the original loan, we had the option of including escrow in the loan for taxes and insurance. We chose to do this. Now we want to keep the money in our pockets and pay the taxes ourselves. They will not let us do this, and they have increased our escrow above what they need.
Our Homeowner's insurance was due this week, and they refused to pay it. We have never made the insurance payment on this loan. After the additional escrow funds they are collecting, and they refused to pay the $630 Homeowners policy.
Auroa Loan Services is using Predatory Lending tactics with many items, and that is a direct violation of the Truth in Lending Act and The Fair Credit Act.
Someone posted previously this information about contacting the FTC to file a complaint. I plan on doing that, but the information is worth passing along again. Thanks to Shari in Illinois for posting this information; I hope more people will file complaints. If the FTC receives enough complaints, a class action lawsuit will be filed.
Federal Trade Commission
Office of Inspector General
Room 1110
600 Pennsylvania Ave N.W.
Washington, DC 20580
General Complaints: 1-877-382-4357
The U.S. District Attorneys Office: 312-353-5300
(speak with the paralegal department)
Your personal State Attorney General's Office
Colorado Better Business Bureau
1-866-206-1800
Nebraska Better Business Bureau
800-649-6814
Arizona Better Business Bureau
877-291-6222
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