Consumer complaint received 2023-11-22
Company: PNC Bank N.A.
State: WI
Product: Mortgage
Sub-product: Home equity loan or line of credit (HELOC)
Issue: Trouble during payment process
Sub-issue: Interest rate

Complaint:
On XX/XX/XXXX we ( myself and my spouse ) closed on a home equity loan at the XXXX XXXX, XXXX PNC branch. The home equity loan was originally a HELOC with a fixed rate since we took out the entire amount in a XXXX time withdrawal after the 3 day waiting period. On the day of closing, I noted that the interest rate was incorrect per what was stated to me just the previous day by XXXX XXXX, XXXX XXXX XXXX, Retail loans. 
The branch manager who was closing the paperwork for our loan, made several phone calls and came back and said the interest rate on the paperwork is correct. The interest rate I was supposed to receive per XXXX is 4.37 % and what we were told and signed for is 4.4400 %. We should also receive a XXXX reduction for enrollment in automated withdrawals. 

Unfortunately, we were on a timeline and needed to o sign that day, due to having to pay a contractor for a home project. 

In addition I have been having trouble with the way PNC is applying my additional loan payments. Each time I attempt to pay an additional payment, they turn around and reduce my automatic withdrawal by the amount of my additional payments. Basically, not allowing me to pay anything extra on my loan. 

Pertaining to the interest rate, I received a letter on XX/XX/XXXX stating that upon audit of my " FIXED RATE LOCKED '' home equity rate, there was a miscalculation in the interest rate that was received. The letter further explains the old rate was 4.4400 % and the correct rate should have been 4.37920 % and I will be receiving a refund if anything is due. 
A follow up letter was received on XX/XX/XXXX which stated my credit applied for this error is 34.11 %. I called the bank and requested a complete accounting of how this dollar amount was calculated because according to my math, that was not correct. I spoke with a representative who was extremely rude and told me specifically that my math is wrong and {$34.00} is correct. I requested to speak with a supervisor. I received an email on XX/XX/XXXX from a " XXXX XXXX, Case Manager '' stating they were not able to reach me. I supplied my correct phone number and I received a call from XXXX the following day. During my call with XXXX, she explained that I was only given credited 6 months not going back to the origination date of XXXX XXXX. I requested a total accounting of their calculations during my first call with XXXX, but I still have not received it. However, XXXX stated to me ( on a recorded line ) and I quote " PNC doesn't want to credit you back to the beginning since you never complained about it. '' At this time I told XXXX she was wrong, I have complained about the interest rate and how my additional loan payments have been applied. I supplied her with dates and names of people I have spoken with ( XXXX and XXXX XXXX. Since our initial phone call, I have spoken to XXXX no less than 3 times. During each phone call, she continues to ask me for my documentation that the interest rate should be 4.37920 % not 4.4400 %. I continue to contend that fault by PNC Bank has already been admitted based on the letter I received on XX/XX/XXXX based upon a PNC audit. In addition, I attest that this is a fixed rate lock, when her response to me is the rate just changed in XXXX. The rate changed due to the audit findings... XXXX continues to ask me for my documentation and states she needs to work on this with her partners. Today, XX/XX/XXXX, I told XXXX that I'm filing a complaint because I've waited far too long and have spoken to many people regarding both issues with my loan and my wheels kept spinning. XXXX told me today XX/XX/XXXX that she will be escalating my concerns to someone higher than her, when I explained I was going to file an official complaint with the regulatory agency. 

Pertaining to the improper application of my payments. If my loan is {$360.00}. And I attempt to pay an additional {$50.00}. My automatic payment is reduced to {$310.00}. I called PNC multiple times and spoke with many representatives. They first told me I was making additional payments incorrectly, then it was I was making the payments on the wrong date of the month. They walked me through how I should be " making my payments online '' which was specifically states in their online banking system that my additional payments will not reduce the amount of my regular payment each time I do it. Unfortunately, each time I make a payment, the amount of my additional payment, is reduced in my automatic withdrawal. As above. After speaking to multiple representatives, I spoke to XXXX XXXX Executive Client Relations around XXXX XX/XX/XXXX after requesting a supervisor. XXXX explained there is nothing wrong with what PNC banking is doing and that I should not go by what online banking is starting, it isn't always correct. XXXX told me I have about 3 days month to send in an additional payment in order for them to be applied the way I want them and not have my automatic withdrawal reduced. I argued that this is not appropriate. I was offered to change my automatic withdrawals to include the additional payments. I explained I wanted to be able to send in extra based upon my budget and this practice seems inappropriate. I also spoke to a XXXX XXXX on or about XX/XX/XXXX. Both XXXX and XXXX both told me PNC is appropriate that it was my method. I attempted to file a complaint regarding my concerns on XX/XX/XXXX but I sent it to the wrong division. 

I'm requesting correction of the difference between the rate I was charged and the correct rate back to the origination date of the loan. And I'm requesting appropriate application of additional payments and withdrawals on my account.

Company response to consumer: Closed with explanation