Author Topic: Thousands in unauthorized mortgage payments withdrawn from their bank accounts  (Read 299 times)

MechAg94

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Local homeowners shocked by thousands in unauthorized mortgage payments withdrawn from their bank accounts
https://riverheadlocal.com/2021/04/24/local-homeowners-shocked-by-thousands-in-unauthorized-mortgage-payments-withdrawn-from-their-bank-accounts/

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Homeowners across the country, including eastern Suffolk County, woke up to a shock this morning when they learned their mortgage servicing agency had withdrawn multiple payments from their checking accounts overnight.

Payments to the Texas-based mortgage servicing company known as Mr. Cooper left checking accounts overdrawn and people unexpectedly without access to their money.

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“They hit my account for five mortgage payments — five — which totaled more than $10,000. When I looked at my email on my phone this morning, I thought I was seeing things. I had no funds and was overdrawn by several thousand dollars,” she said.

She said she doesn’t have automatic payments set up for her mortgage and, in fact, doesn’t even make her payments online.

Not much more information here. 
https://www.housingwire.com/articles/cfpb-looking-at-mr-cooper-after-withdrawal-errors/
CFPB looking at Mr. Cooper after withdrawal errors

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The mortgage servicer reiterated that this was not the result of a hacking and no borrower bank accounts or accounts within Mr. Cooper’s system were compromised.

Mr. Cooper did not disclose specifically which banks they were working with to reverse the incorrect charges, however, several heated borrowers took to social media after discovering the unauthorized withdrawals with the majority pointing to issues with JPMorgan Chase.

https://www.youtube.com/watch?v=zwgz9OVx6Mw
Saw the story here first. 

I was going to comment on the possible dangers of giving account information to 3rd parties to make payments.  (I still think that is a bad idea)  It depends on how the "unauthorized" payments were made and what those people meant by saying the payments were not automatic.  I assume they mean they authorize the payment by giving MrCooper their account number to charge.  If that didn't happen, that points back at the banking institutions. 
“It is much more important to kill bad bills than to pass good ones.”  ― Calvin Coolidge