How Long Can a Loan Servicer Take to Investigate and Resolve a Billing Dispute

You can phone or write to your mortgage servicer if you believe your servicer has made an error or if you require information about your mortgage loan. If you write a letter, you might gain extra protection.

Over the phone, your servicer may be able to assist you. The phone number can be found on your monthly mortgage statement or discount book. However, you should write to your servicer and send it to the address supplied by the servicer for such requests if you want a prompt written answer.

How to Write a Notice of Error or Information Request Letter

You can send a single letter if you’re sending an error notice and wish to seek specific information. You can also mail your notice of error and information request letters individually.

Letter Samples

Here is a sample letter to assist you in explaining an inaccuracy to your mortgage servicer. This article also contains information on disputing an error with your service provider. Remember the following when sending a letter:

• Your name, house address, and mortgage account number should all be included. Use the name that appears on your loan.
• To locate an inaccuracy or piece of information. Tell your servicer exactly what error you think happened and what information you need.
• Your letter should not be written on your payment coupon or another payment form. You might not receive the same level of protection.
• To deliver the letter to the correct recipient. Borrowers may send requests to remedy errors or request information to a particular address provided by the mortgage servicer. This address can usually be found in a notice from your servicer, your monthly mortgage statement or coupon book, your servicer’s website, or by calling your servicer. If your servicer utilizes one, you must send the letter to your servicer’s unique address.

Tip: You should keep paying your mortgage payments as usual while waiting for an answer.

The reaction of your mortgage servicer

Within five days after receiving your letter (excluding weekends and lawful public holidays), your mortgage servicer must send you a letter confirming receipt. In most cases, your mortgage servicer has 30 days to reply to your error or information request (not including weekends and legal public holidays). If you have a problem with an error, your servicer can:

• Correct the error and write down the correction.
• Investigate the error and provide you a written notice stating why no error was discovered and how you can learn more.
• Inquire for extra details.
• Inform you in writing that it would request an extra 15 days to examine and reply to your notification of error (excluding weekends and legal public holidays).

Suppose the issue you’re writing about involves the servicer initiating the foreclosure process incorrectly, moving for a foreclosure judgment or order of sale, or executing a foreclosure sale. In that case, the servicer must usually respond to your notice of error before the foreclosure sale. If you need information, your service provider can:

• In writing, provide the needed information.
• Please search for the information and send you a written notice explaining why it isn’t available and providing contact information for further assistance.
• Inform you in writing that it will seek an extra 15 days to respond to your request (excluding weekends and legal public holidays).
• You can file a complaint online or contact (855) 411-CFPB if you have an issue with your mortgage (2372).

A housing counselor can also be contacted. To acquire a list of counseling agencies approved by the Department of Housing and Urban Development, use the CFPB’s “Find a Counselor” tool (H.U.D.). You can also call the HOPETM Hotline at (888) 995-HOPE, which is available 24 hours a day, seven days a week (4673)

If you’re about to lose your home or have been served with legal proceedings, you should speak with an attorney.

If you properly contact the lender about a statement issued, it must confirm receipt of your notification within 30 days unless the problem has been addressed. After receiving the billing error notice, the lender must investigate and remedy the problem within two billing cycles (but no later than 90 days).

While the lender investigates the invoicing issue:

• You can defer payment of the disputed amount and associated charges. Any portion of the bill that is not in dispute, including finance charges on undisputed amounts, must be paid according to account conditions.
• The lender is prohibited from taking legal or collecting action on the disputed amount.
• Your account may not be reported as delinquent, your debt may not be accelerated, your account may be restricted, or your account may be closed.
• If your lender determines that your account has a billing problem, it must offer you a written explanation of the changes made to your account. The lender must eliminate all finance costs, late fees, and other charges linked to the error and credit your account for the disputed amount.

If the investigation reveals no error, the lender must offer you a written explanation of the amount you owe. You are responsible for paying the disputed amount and any finance charges incurred during the investigation.

You have the right to seek copies of any relevant documents utilized by the lender during the investigation. If you disagree with the investigation findings, you have 10 days after obtaining the explanation to write to the lender and express your refusal to pay the disputed sum. The lender may commence collection operations and notify credit reporting agencies that your account is delinquent, but it must also record that you disagree with the amount owed.

TILA includes particular credit card clauses that limit your liability for fraudulent credit card use and the consumer safeguards connected with billing problems. If you discover that an unauthorized user has made transactions with your card, immediately alert the card issuer – in person, by phone, in writing, or via a mobile app, if one is available. This reduces your responsibility to $50. You could be held accountable for far more if you delay.