How to Complain Against a Mortgage Provider

With the huge increase in homeownership following the loosening of regulations by the U.S. Congress, some mortgage companies have taken advantage of big sales by scamming customers. With the help of the United States Federal Trade Commission (FTC), you can effectively file complaints against mortgage companies. However, when complaints are relatively minor, it's best to handle the inquiry with representatives of the mortgage company itself.

Difficulty: Moderately Easy

Instructions

Things You'll Need:

• Mortgage account number
• Social security card
• Contact info for mortgage company

1. Determine how major or minor the complaint is. For example, if you are complaining about fraudulent activity and potentially felonious offenses, take it to the federal level. If you're complaining about a payment being posted incorrectly, keep it at the company level.

2. Review the complaint procedure at the FTC website (see the Resources section). If you think you have an egregious offense to report, fill out the complaint form. It can take up to four weeks to get a response from the government.

3. File a complaint with the executive management office of the mortgage company, regardless of the offense. This will trickle down through the hierarchy of the company, ultimately resulting in disciplinary action against offending employees.

4. Call the local office or branch location (or broker) where you originated your mortgage loan. Speaking directly with an originator or manager at a lower level can often help you resolve the complaint faster.

5. File a complaint with the Better Business Bureau. This nonprofit company tracks the behavior of thousands of companies nationwide. By getting a complaint in writing, you'll be alerting other consumers of poor practices. See Resources for the BBB website.

6. Follow up with all agencies whom you contacted---FTC, the mortgage company's executive and local offices, and the Better Business Bureau. The more persistent you are, the faster the dispute will be handled.

Tips & Warnings

• Be patient when dealing with representatives of mortgage companies. It may be challenging to get through to someone in the executive office. Be courteous and respectful with lower-level customer service representatives and you'll get through faster.

References

• Bankrate: How to Complain About a Mortgage Lender
• FTC: Mortgage Payments and Complaints

Resources

• FTC Complaints
• Better Business Bureau