I refinanced my home in June, 2004, with "BNC Mortgage". By November 2004, it had sold 3 times and wound up with ASC. ASC failed to notify me or give me a new loan number by the November due date, so I couldn't send my payment on time (I'm NOT going to send a payment to a P.O. Box without a loan # on the check; it can't get posted or credited to my account!). Finally, going on line to see if I could pay that way, I found ASC here, in Ripoff Report.com. I don't know what happened to the dozens of reports that were here a few months ago, but there were SO many more than appear here now. Heads up, folks:
ASC is a scam company in the business of buying "B paper" (i.e., notes signed by folks with marginal credit who are apparently struggling to get by). They do this to set us up for failure and ultimately foreclosure. They have many tricks, including saying they never received payments, putting payments in "suspense" (i.e., not posting them when received)- which makes them post late so they can assess late fees improperly; pretending to not have received insurance information or flat-out lying and saying the insurance info your insurer sent them "excludes" certain coverages, so they "secure" their own ripoff insurance and either raid the escrow account or increase the mortgage payments; they have improperly reported payments as late to further destroy customers' credit ratings so they cannot refinance, etc. etc. IT'S ALL A TRAP.
If you own in a place where the home values have been rising quickly in recent years, you're a most likely target.
I have been lucky so far and, because I had a heads-up, I've been watching ASC like a hawk. Their latest spin, on me, has been trying to pull the "inadequate insurance coverage" scam...but I'm on to them. I've always had adequate insurance coverage. My insurance company sent it to ASC in January and on March 2, 2005, and again on
3/24/05 after I received a Notice of Deficiency from ASC.
On 4/1/05 I called ASC to ensure the matter was handled and Jennifer (no last name given) said ASC had received the insurance info by fax on 3/24/05 and ASC was updating its computer system, that there would be no insurance purchased for me and my payments would not increase. Right. On 4/18/05 I got a Notice of Temporary Insurance dated 4/11/05 saying because of my "failure" to provide proof of coverage, ASC "secured" a binder for windstorm and hail coverage at a cost of $2,658.79 to me and I had to pay it. I hit the roof!!! I just sent ASC a very direct letter and yet another copy of the insurance policy and Declarations page (by fax AND certified mail, return receipt requested). I'm copying an attorney and the Federal Trade Commission. In my letter, I told ASC how this action reeks of a scam:
[quote from my letter to ASC]:
"Let me outline the course of events for you to ensure you understand exactly what happened and why it makes ASC look so very, very suspicious:
-1/28/05: HIG sent ASC, by mail, my insurance policy and declarations page showing, among other things, the windstorm and hail coverage you require;
-3/2/05: HIG sent ASC the rider again, this time to a different address than you originally specified; they also faxed it to another fax number that was never specified but which I got from your customer service department upon inquiry;
-3/14/05: ASC generated a generic form letter claiming the policy HIG provided excludes windstorm and/or hail coverage and advising me to obtain such coverage and provide proof of it within thirty (30) days of the date of notice (i.e., by 4/13/05). I received your notice late on 3/22/05, nearly ten days later, so almost a third (1/3) of my compliance period has already elapsed. Note: the use of the word excludes indicates that ASC had in fact received my insurance information from HIG, and I know that what they sent ASC did not exclude windstorm/hail coverage, so that statement is completely false.
-3/23/05: I called ASC customer service and spoke to Danielle (who would not give her last name). I explained I just received the Notice and was calling the insurance company right away. I then called HIG / Royal Insurance and verified that my policy does have windstorm/hail coverage. I have her ASC's address, fax and phone numbers from the Notice and HIG resubmitted my policy & declarations page to ASC, calling after faxing it to confirm receipt and ensure ASC understood that windstorm/hail was covered.
-4/1/05: I called ASC again to confirm the insurance issue was handled and spoke to Jennifer in customer service. Jennifer (also would not give her last name) told me that ASC did receive the fax from HIG and was updating its computer system at that time. She said no insurance was being purchased for me, there would be no charges assessed to me, and my mortgage payment would not increase.
-4/18/05: I received the Notice of Temporary Insurance that ASC generated back on 4/11/05 (three days before the 30-day compliance period even expired), which Notice stated the secured coverage was effective retroactively to 3/10/05, four (4) days before the date of the first Notice ASC generated that purportedly gave me until 4/13/05 to provide proof that I have the required coverage.
It is quite clear that ASC intended to secure this unnecessary insurance, at my expense, despite having been previously provided a copy of my policy, and without first allowing me to prove that I had such coverage already. The effective date of the binder is four days earlier than the date of the first Notice of Deficiency. It is also clear that the thirty day period ASC allegedly gave me to comply never had any substance, because ASC secured the coverage on or before 4/11/05, three days or more before the 30-day period to comply was to expire apparently, ASC intended to assess me for unnecessary insurance whether or not I proved I already had it. Worse, one of ASC's own agents confirmed ASC's receipt, on 3/24/05, of the insurance policy and Declarations page by fax from HIG and stated that the insurance information was being updated in ASC's computer system, so ASC secured the coverage and generated the Notice of Temporary Insurance despite having full knowledge that I already had the required coverage."
I already know ASC will ignore my letter, shrug off the fact that I'm aware of the game they're playing, and most likely try again to "secure" unnecessary insurance for me at my expense so they can raise my mortgage payment. I'm watching them LIKE A HAWK, and I make SURE, at whatever cost, that my monthly mortgage payments are received by ASC before the last day of the grace period. I make payments by "check by phone", or electronic debit, so I have not only a confirmation number from ASC, but my bank has a record of the withdrawal...no check to get lost.
I'm going to try to refinance, but my credit is marginal now (thanks to an irresponsible ex-husband), AND I lost my job and then got injured so I'm temporarily disabled, so I'm not sure I can show any lender I'm safe to finance. But I'll try. And I'll keep trying, and keep trying, until I succeed. And when I do, I fully intend to insist that there be a clause written into the Note and Mortgage saying that under no circumstances is my mortgage to be sold to ASC, Ocwen, Wells Fargo, or any of their other co-horts. Oh yeah -- I checked my credit report out yesterday...guess what company did an inquiry without my permission? Wells Fargo...another lender/loan servicing company with a horrible rep for ripping off homeowners by forcing foreclosure, and a company known to somehow be affiliated with ASC. Today, I'm writing the credit reporting companies (Equifax, Experian and Transunion) to specifically forbid them from providing any information to ANYONE without my prior written consent (on top of all the ASC crap, in January I had my identity stolen, so I believe the credit reporting agencies will have to honor my request).
As always, be advised to follow up any phone contacts with ASC in writing, certified mail, with a return receipt (or at minimum a "delivery confirmation" from the post office), and take very good notes including dates, content of conversations, and the name(s) of whoever you speak to.
Good luck, and God Bless America