I mailed my mortgage payment before it was due but my servicer received it after the due date and charged me a late fee. Can my servicer do this?

Yes, your servicer can charge you a late fee if it receives your payment after the due date, even if you mailed your payment on time. Most servicers do not go by the postmark on your payment envelope but by when they receive your payment, though some states have laws that may regulate servicers’ assessments of late fees.

Be sure you allow time for transit when you mail your payment. If your servicer receive your payment before the due date, but delayed posting it until after the due date, charging late fees is inappropriate. Should the servicer refuse to remove the fee, you can file a complaint with the CFPB online or by calling 1-855-411-CFPB (2372).

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