The government’s consumer lending watchdog proposed new rules Friday aimed at protecting homeowners from unexpected costs and shoddy service by companies that collect their monthly mortgage payments.

Mortgage servicing companies would be required to provide clear monthly billing statements, warn borrowers before  interest rate hikes and actively help them avoid foreclosure under the proposal by the Consumer Financial Protection Bureau.

The rules also require companies to credit people’s payments promptly, swiftly correct errors and keep better internal records.

Source: USAtoday