• Report: #376612

Complaint Review: American Servicing Company - Wells Fargo

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  • Submitted: Sat, September 27, 2008
  • Updated: Sun, February 01, 2009

  • Reported By:chappaqua New York
American Servicing Company - Wells Fargo
7495 New Horizon Way Frederick, Maryland U.S.A.

American Servicing Company - Wells Fargo 800% rip-off Lender placed insurance premium Frederick Maryland

*Consumer Comment: ASC also forced lender placed policy on me even though I have proof of insurance with NO lapse.

*Consumer Comment: ASC also forced lender placed policy on me even though I have proof of insurance with NO lapse.

*Consumer Comment: ASC also forced lender placed policy on me even though I have proof of insurance with NO lapse.

*Consumer Comment: ASC also forced lender placed policy on me even though I have proof of insurance with NO lapse.

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We are complaining horrific mortgage LENDER PLACED INSURANCE PREMIUM RIP OFF by American Servicing Company, American Security Insurance company, & Assurant Specialty Property. (American Servicing Company is A WELLS FARGO)

1.Exorbitant 800 900% Lender placed insurance premium without any notice. We provided Home owner's insurance policy covering from Aug 2006, so there was about 1 month and 2 weeks of lapse which they claimed they notified us to cover from June 2006 which we never received and we demanded them to provide the proof of such notice but they failed to provide.

2.Excessive 800 - 900% gauging if it is not illegal, it is willful exploitation. For mere 1 month 2 weeks short lapse, they charged insurance premium whopping $1568.52 ($1078 + $490.90), prorated abut $8000 yearly for DWELLING ONLY without any liabilities for COVERAGE AMOUNT $750,000 while comparable industry average Dwelling only premium for that coverage is about $1200 YEAR.

3.Unilateral lender placement charge BETRAYAL OF CUSTOMER'S TRUST. They unilaterally insured at the highest gauging amount of premium THRU THEIR OWN INSURANCE COMPANY WITHOUT CUSTOMER'S CONSENT. They betrayed customer's trust to profiting themselves, which should be breach of fiduciary duty. This self-dealing insurance premium rip off is directly hurting consumer and should be stopped. When we complained, ASC replied they sent notice to us on July 17, 2006 which we never received and we demanded proof of notice they delivered to us but they refused it and failed to prove they gave us notice.

4.Unilateral deduction from Mortgage payment and started to charge late fee. Despite we paid full amount of monthly mortgage payments every month in time without any skip, ASC took the gauging insurance premium away from our mortgage payment unilaterally and did not applied our payments to monthly mortgage payment and started to charge late fee. THIS WILFULL EXPLOITATION IS HURTING CONSUMER AND MUST BE STOPPED. Despite of our complaints in the past a year to correct it, they are keep charging late fee and harassing to foreclose. THIS MUST BE STOPPED. PLEASE HELP TO PROTECT THE CONSUMERS. THIS IS WILFULL AND DELIBERATE EXPLOITATION BY GAUGING INSURANCE PREMIUM.

5.Retroactive insurance premium charge should be stopped if not illegal it is wilful exploitation. OUR INSURANCE POLICY COVERAGE DATE WAS AUGUST 2006. ASC'S LENDER PLACEMENT INSURANCE BINDING AND NOTICE DATE WAS OCTOBER 2, 2006. NONTHELESS, ASC CHARGED RETROACTIVELY FROM JUNE 2006

6.ASC confessed it was their error not able to notify to us as ASC audit team discovered later there is no hazard insurance on our mortgage after they purchased the loan from Ohio Savings bank, this facts were confirmed by ASC employees Miss SHANE, and Miss ALICIA both working in Frederick, MD office.

7.Despite of all above, not only there was no fire on my house during the lapse period but also WE NEVER MAKE ANY ERROR ON OUR SIDE for that short lapse, in fact it was their error as they confessed. Therefore it is very natural to grant courtesy and grace period for that short lapse, but ASC refused which proves that their practices are WILFULL EXPLOITATION, TRAP, AND PREDATORY TO HARM CONSUMER to profit themselves.

We are very very frustrated as they continue to refuse to correct it for the past year and giving us painful ordeal.

Please kindly help us let them stop this kind of ASC/Wells Fargo Bank's willful and exploitative practices as I believe this is their pattern of consumer exploitation not only us but others as well.

sincerely


Re:
American Servicing Company (ASC) /A Wells Fargo
Mr Dick Kovokovich CEO
7495 New Horizon Way
Frederick, MD 21703

Hyjoe99
chappaqua, New York
U.S.A.

This report was posted on Ripoff Report on 09/27/2008 06:43 PM and is a permanent record located here: http://www.ripoffreport.com/r/American-Servicing-Company-Wells-Fargo/Frederick-Maryland-21703/American-Servicing-Company-Wells-Fargo-800-rip-off-Lender-placed-insurance-premium-Fred-376612. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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Updates & Rebuttals

#1 Consumer Comment

ASC also forced lender placed policy on me even though I have proof of insurance with NO lapse.

AUTHOR: Pat - (U.S.A.)

ASC has taken my P&I payments and applied them to a wrongful escrow to pay for lender placed insurance policy that I don't want and don't need. I pay $380 per year for local insurance, But ASC keeps saying they don't get our proof by FAX or Mail or even return receipt mail. So they keep buying lender placed policy and it has been 14 months and $6,000 and now I face foreclosure because all my mortgage payments go toward scam and it looks like my payments are 4 months behind.
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#2 Consumer Comment

ASC also forced lender placed policy on me even though I have proof of insurance with NO lapse.

AUTHOR: Pat - (U.S.A.)

ASC has taken my P&I payments and applied them to a wrongful escrow to pay for lender placed insurance policy that I don't want and don't need. I pay $380 per year for local insurance, But ASC keeps saying they don't get our proof by FAX or Mail or even return receipt mail. So they keep buying lender placed policy and it has been 14 months and $6,000 and now I face foreclosure because all my mortgage payments go toward scam and it looks like my payments are 4 months behind.
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#3 Consumer Comment

ASC also forced lender placed policy on me even though I have proof of insurance with NO lapse.

AUTHOR: Pat - (U.S.A.)

ASC has taken my P&I payments and applied them to a wrongful escrow to pay for lender placed insurance policy that I don't want and don't need. I pay $380 per year for local insurance, But ASC keeps saying they don't get our proof by FAX or Mail or even return receipt mail. So they keep buying lender placed policy and it has been 14 months and $6,000 and now I face foreclosure because all my mortgage payments go toward scam and it looks like my payments are 4 months behind.
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#4 Consumer Comment

ASC also forced lender placed policy on me even though I have proof of insurance with NO lapse.

AUTHOR: Pat - (U.S.A.)

ASC has taken my P&I payments and applied them to a wrongful escrow to pay for lender placed insurance policy that I don't want and don't need. I pay $380 per year for local insurance, But ASC keeps saying they don't get our proof by FAX or Mail or even return receipt mail. So they keep buying lender placed policy and it has been 14 months and $6,000 and now I face foreclosure because all my mortgage payments go toward scam and it looks like my payments are 4 months behind.
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