Consumer complaint received 2023-11-17
Company: FIFTH THIRD FINANCIAL CORPORATION
State: SC
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process
Sub-issue: Escrow, taxes, or insurance

Complaint:
I am writing to formally lodge a complaint against Fifth Third Bank for the egregious mismanagement of my mortgage escrow account. This letter serves to highlight the sequence of events that have not only caused significant financial distress but also reflect a gross negligence on the part of the bank. 

Fifth Third Bank, after acquiring my loan from a previous lender XXXX of XXXXa transition over which I had no control or sayfailed in their fundamental duty to inform me of critical changes to my escrow balance. I was kept in the dark when my escrow account went into a negative balance when the Property Taxes were paid XXXX of XXXX. This lapse in communication is a blatant disregard for the duty of care owed to their customers. 

Adding insult to injury, the bank continued to collect an incorrect ( {$2100.00} ) amount for escrow for an entire year, exacerbating the deficit in my account. Again, I was met with a disconcerting silence from FifthThird Bank ; no attempt was made to inform or consult me about these developments that I should be paying {$400.00} more monthly to adjust for the new tax assessment. It is not only unprofessional but also unethical to keep a customer uninformed about such critical financial matters. 

The culmination of this negligence has resulted in a sudden and unreasonable demand from the bank for me to pay an additional {$1100.00} per month to rectify their mistake. This expectation, delivered XX/XX/XXXX with a mere 30-day notice, is not only unfair but also financially burdensome. 

Furthermore, I suspect this lack of communication regarding the property tax rate change and the corresponding increase in my home 's value was a strategic move by XXXX and Fifth Bank. By not acknowledging these changes, the bank conveniently avoided reaching the 80 % loan-to-value threshold that would necessitate the discontinuation of mortgage insurance. The omission of said mortgage insurance would have rectified the deficit created by this egregious oversight. This action, or lack thereof, suggests a deliberate attempt to profit at my expense. 

I am compelled to point out that such burdensome financial tactics can lead to devastating consequences, including the loss of homes. This is especially concerning in beach communities where the demographic is predominantly white. The actions of Fifth Third Bank, I fear, may be part of a larger, more insidious agenda to keep XXXX families out of these communities. 

I am sure that I am not the only customer who has suffered due to these practices. This situation raises serious concerns about systemic discriminatory practices that could be affecting many other homeowners, especially in minority communities. It is imperative that the Consumer Financial Protection Bureau investigates Fifth Third Bank not only for their mismanagement of escrow accounts but also for potential discriminatory practices against minority homeowners. 

This entire ordeal has not only created a financial hardship for me but also significant stress and inconvenience in my time I can never get back.

Company response to consumer: In progress