We discovered on April 24 that a payment processing issue at our electronic payments vendor resulted in a number of our customers having their bank account charged incorrectly, some multiple times, without our knowledge. Immediately upon learning of the issue, our team worked with the banks involved, and our payments vendor, to reverse the transactions as quickly as possible. All unauthorized charges have been or are being corrected, and any customers affected will not be responsible for any fees or other negative financial impact this has caused. We have also confirmed this was not a security breach and no personal data was compromised.
As you review your bank statement, please be aware that certain banks processed the multiple payments on Saturday, April 24, and temporary courtesy credits were visible the same day. As of Sunday, April 25, all payment corrections were submitted to the banks to be processed. Some banks processed the payments on Monday, April 26, and the reversals were processed and visible later that day. In fewer instances, payments or reversals were processed on Tuesday, April 27.
We value the trust our customers place in us, and we sincerely apologize to those impacted. We take the processing of these transactions very seriously, and we have launched a full investigation to get to the bottom of what happened. Our payment processing vendor has been fully cooperative and has put new processes and safety measures in place to prevent any issues like this from happening in the future.
What to expect
As banks process these reversals, impacted customers may see a series of debits or credits over a few days in their bank account in order to reconcile the erroneous charges. Due to the various ways individual banks may process the payment requests, including the inaccurate transactions, the order in which the transactions occur and the timing may vary. However, in our communications with the majority of the banks involved, we have been assured that most customers’ account status was up to date by the end of the day, Monday, April 26, and in a few cases, by Tuesday, April 27.
This activity will not negatively impact customers’ accounts, and we do not expect banks to assess any fees or penalties because of this activity. In the event a customer is assessed a fee related to these transactions, they will be reimbursed.
A payment processing issue at our electronic payments vendor triggered multiple requests for funds from a number of Mr. Cooper customers’ accounts.
Was Mr. Cooper or my account hacked?
No. This was a payment processing transaction error and neither your bank account, nor Mr. Cooper’s systems or accounts were compromised.
Does Mr. Cooper have my money?
No. Mr. Cooper has neither processed nor posted funds withdrawn from your bank to our account. All unauthorized charges are being corrected, and any impacted customers will not be responsible for any fees or other negative financial impact this may have caused.
When do I get my money back?
Although we submitted payment corrections to all banks on Sunday, April 25, we expect this to be reconciled on your bank account no later than end of the day, Monday, April 26, or in fewer cases, by Tuesday, April 27, depending on the financial institution. This activity will not negatively impact customers’ accounts, and we do not expect banks to assess any fees or penalties because of this activity.
What should I do now?
There is nothing that you need to do in order to reverse the transfers that were made in error. Please continue to monitor your accounts, as the timing of online updates may vary for each bank.
I was charged non-sufficient funds/bank returned items, overdraft fees or merchant returned check fees because of the inaccurate charges. What can I do?
We worked closely with the banks to ensure impacted customers were not charged any fees. In the event you are assessed a fee or fees related to this issue, you will be reimbursed. You can request reimbursement by signing in to your online Mr. Cooper account and submitting your reimbursement request using the link found on your loan overview page (this is the first page you will see after signing in). Also, note that mobile app users will also need to sign in to the website with the same Username and Password used for the mobile app. NOTE: If your account was not impacted by the payment processing issue, you will not see the link for the reimbursement request when you sign in.
How will this impact my account and status?
Impacted customers will not be responsible for any fees or other negative financial impacts this may have caused. In the event a customer is assessed a fee related to these transactions, we are working quickly to reimburse them.
Is this still happening?
No. All duplicate transaction requests have been stopped. We are actively working with the banks involved and the payments vendor to correct the issue and prevent recurrence. We will continue to share updates with impacted customers.
Why do I see multiple debits/credits and payment reversals on my account?
As banks process these reversals, impacted customers may see a series of debits or credits over a few days in their bank account in order to reconcile the erroneous charges. Due to the various ways individual banks may process the payment requests, including the inaccurate transactions, the order in which the transactions occur, and the timing may vary. However, in our communications with the majority of the banks involved, we have been assured that most customers’ account status was up-to-date by the end of the day Monday, April 26, and in a few cases, by Tuesday, April 27.
I made my normal payment but received an email about this issue. Will I see a reversal of that payment and need to pay again?
For most customers, your recent monthly payment will not be reversed, and therefore you do not need to pay again. In a few cases, customers may see all recent transactions reversed out of an abundance of caution. If this happened to you, you may see this month’s payment processed on Monday, April 26.
I didn’t receive an email or call but saw an alert on the website about this issue. What do I need to do? Has this issue been fixed so it won’t happen again?
Not all customers were impacted by this issue. If your recent mortgage payment was processed and posted as expected, there is nothing you need to do. Since the incident, we worked directly with the banks involved and the payments vendor, and this issue has been resolved. We take the processing of these transactions seriously and have made the corrections necessary to resolve this issue and prevent recurrence.