Loan Servicer Complaints: How to File and What to Expect

Why file: Loan servicer errors can damage your credit, trigger unnecessary fees, or risk foreclosure. Pursuing a formal complaint forces an official review, creates a record, and often leads to a faster correction than phone calls alone.

Step‑by‑step: How to file a complaint

1. Try to resolve the issue with the servicer first

• Call and ask for a supervisor; take names, dates, and call reference numbers.
• Follow up in writing (secure message, email, or certified mail). Written records are required for many protections under federal law.

1. Prepare a clear, concise complaint packet

• Include your full name, loan number, property address, a short timeline of events, copies of relevant documents (bank statements, canceled checks, payment confirmations, escrow statements), and a clear request for remedy (refund, correction, reinstatement, loan modification review).
• Use certified mail or the servicer’s dispute portal so you have proof of delivery.

1. Use federal and state complaint channels

• File with the Consumer Financial Protection Bureau (CFPB) complaint system: https://www.consumerfinance.gov/complaint/. The CFPB forwards complaints to companies and posts responses in its public database. (CFPB)
• If you have an FHA, VA, or other insured loan, also file with HUD: https://www.hud.gov/program_offices/housing/complaint (HUD).
• If you believe a third‑party debt collector is involved, review the Fair Debt Collection Practices Act (FDCPA) guidance and consider filing with the FTC: https://www.ftc.gov/faq/consumer-protection/file-consumer-complaint-ftc (FTC).
• Your state banking or financial regulator can handle licensing and state‑law claims; find contact info on your state government website.

1. Cite RESPA for escrow and error disputes

• For errors involving escrow, payments, or servicing transfers on federally related mortgage loans, cite RESPA (12 U.S.C. §2605). Under RESPA, servicers generally must acknowledge receipt of a qualified written request and respond to error investigations within set timeframes; HUD and CFPB explain these rules in more detail (HUD/CFPB).

What to expect after you file

• Acknowledgment and company response: The CFPB will forward your complaint to the servicer; many companies provide an initial response within about 15 business days, but full resolution can take weeks to months depending on complexity. (CFPB)
• Possible outcomes: correction of account records, refund of fees, reinstatement of payments, escrow adjustments, loan modification offers, or a conclusion that no change is warranted. If the servicer’s response is inadequate, you can submit additional evidence and request escalation.
• Public record: Complaints filed through the CFPB appear in its public database; companies often respond there, which can pressure a quicker fix.

Timing and deadlines

• Keep copies of all communications and dates. If pursuing RESPA protections, timely written submission is critical. Even when no strict deadline applies, faster filing strengthens your case and preserves evidence.

Documentation checklist (print or digital folder)

• Loan number and account statements
• Payment receipts, bank records, and canceled checks
• Escrow statements and tax/insurance notices
• Copies of letters, emails, text transcripts, and call logs (name, date, time, summary)
• Any notices of default, foreclosure, or fee assessments

Common mistakes to avoid

• Relying only on phone calls — always follow up in writing.
• Sending incomplete information — vague complaints are slower to resolve.
• Waiting until a notice of default — early escalation often preserves options.

When to seek professional help

• If your home is in imminent foreclosure, consider speaking with a HUD‑approved housing counselor (HUD) or a real estate attorney. For complex or high‑dollar disputes, an attorney can review contract and state‑law claims.

Quick example from practice

One client was told a partial payment would be accepted; it posted wrong and a late fee and negative credit report followed. After documenting calls and sending a written dispute, we filed with the CFPB and the servicer corrected the posting, refunded fees, and removed the negative credit entry.

Professional tips

• Send disputes by certified mail and keep the return receipt.
• Include a brief cover letter listing the documents you’ve attached.
• Use the CFPB complaint portal to track company responses and export the correspondence if you escalate to an attorney.
• If your account was transferred, check how the servicer handles transfers (see this guide on how servicers manage transfers) and confirm the new servicer’s effective date and payment posting rules.

Related resources and internal links

• Learn more about the role of servicers: “What Is a Mortgage Servicer and What Do They Do?” (https://finhelp.io/glossary/what-is-a-mortgage-servicer-and-what-do-they-do/)
• If your account moved between companies, read: “How Loan Servicers Manage Transfers and What to Do When Your Account Moves” (https://finhelp.io/glossary/how-loan-servicers-manage-transfers-and-what-to-do-when-your-account-moves/)

Authoritative links

• CFPB complaint portal: https://www.consumerfinance.gov/complaint/ (CFPB)
• HUD complaints and RESPA info: https://www.hud.gov/program_offices/housing/complaint (HUD)
• Federal Trade Commission complaint info: https://www.ftc.gov/faq/consumer-protection/file-consumer-complaint-ftc (FTC)

Disclaimer

This article is educational and does not constitute legal advice. For personalized legal help, contact a licensed attorney or a HUD‑approved housing counselor.