About 6 years ago we purchased our house through a local mortage co. 2 years later we refinanced with First Union Morgage. With in a year or so we received a notice from them that our loan had been sold to Home Eq.
Several months ago, I discovered during a phone call that I'd made to Home Eq to make our monthly payment, that they have been charging us "simple interest" and that because of this, our principal balance had not been going down at all. Some months we had even gone the other direction. But no fees or explanation have ever disclosed on the statement. Luckliy one of their employees finally "leaked" the info.
I looked at our statement and there was absolutely nothing about it. Our due date is the 4th of the month and late fees to incure if not paid by 19th of the month. Due to paycheck schedules, we would mail our payment out the first week of every month. Definitely to arrive in their office by the 7-10th of the month. No late fees are being charged.
We looked over our contract and no where on it was anything about simple interest. I then asked them for a copy of the contract with our signatures stating we agreed to simple interest. They said that I'd have to call Wachovia for this copy. They requested a 7.50 fee for this copy. Their copy arrived and it was the same as ours.... nothing at all about simple interest.
Nothing about this additional interest charge is ever shown on the monthly billing statement. We are now paying by phone on the first day of the month to avoid this extra interest charge.
Several months ago we were also charged a 50.00 fee for a service that we are not aware of agreeing to at all. When I questioned what it was, they stated it was for "skipping your payment this month" offer that was given to us back in 1999. They said that they charge us 50.00 for this service. I've requested a copy of this as well, but they are not able to produce a copy of it either.
Last week they sent us a check back to the tune of 38.75 to cover an over charge of something and a big apology letter, but given how devious they are, we don't dare cash it.
We'd like to go after this company but don't really know how to do it. Luckily I ran across this Rip Off web site and found that over 80 complaints have been filed against this company and many for the same "Simple Interest" issues. While reading some of the other Rip Off reports about this company I've learned from an ex-employee that First Union , Wachovia and Home Eq are all the same company. This just reinforces our need to go after this company.
We'd like to refinance with a new company because of the low interest rate but hate to do anything for fear that we won't get back the thousands of dollars they owe us for over-charged and ripped off interest charges if we change companies prior to a resolution. Help Help !!!
brush prairie, Washington