Consumer complaint received 2022-12-28
Company: TD BANK US HOLDING COMPANY
State: PA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
This is my second complaint to the CFPB about the same issue. First complaint made in XXXX! 

For the better part of 7 years and two mortgage loans, TD BANK has been my loan service provider.

I have a mortgage that has a " no-prepayment penalty clause ''. However TD Bank after several complaints over multiple years, still does not have a process by which their customers can make extra payments to principal using their mortgage payment website. 

https : //tdbank.billeriq.com/ebpp/TDUSPAYMENTS/Login/Index When a client makes monthly mortgage payment and wants to pay extra principal there is no mechanism on TD 's website that allows for this. Customer 's extra principal payments get sent to Miscellaneous Receipt for sometimes weeks or months, before the customer must call and spend multiple hours on the phone to have it corrected. The current reversal period that TD Bank applies to miscellaneous payment resolution is 3-5 business days. TD Bank collects multiple extra days of interest on the mortgage loan even though loan customer has paid down principal balance. TD 's remediation does not adequately provide proof via an amortization schedule that they have corrected the interest error. Recently a TD Bank NA Rep in the mortgage department told me while they have no field for making an additional principal payment on their website yet, a customer can open a checking and savings account at any branch, which can then send automated additional principal payments each month without sitting in a miscellaneous receipt status. 
This smacks in the face of XXXX XXXX  banking regulations and is not an adequate solution as I do not do any other business with TD bank. When XXXX was mentioned to the representative on the line, she abruptly ended the conversation and passed me to customer complaints. She offered that my complaint is a common complaint the bank has yet to address. 

If TD BANK NA ( unit of a XXXX XXXX  ) is allowed to service US Mortgages, specifically " no pre-payment penalty '' mortgages, they should be required by law to operate a fully functioning website that accommodates the payment of additional principal, and not force mortgage loan customers into setting up deposit accounts at their institution. ( XXXX  regulations ) This would immediately remedy multiple days or months of accruing interest after a customer has made a payment to reduce their outstanding principal. I am seeking a simple resolution which is demanding that TD Bank finally add an additional window to their payments page ( link attached ) which identifies and directs extra principal payments to a client 's loan account and not a miscellaneous receipt account that collects interest at TD Bank NA. If TD Bank is allowed to service mortgages in the US, they should also be required to give clients access to their mortgage amortization schedule online, which offers full transparency on the interest charge reversals they make in accounts that face this issue. This loan is only 14 months old and I already have interest discrepancies with outstanding balances. Several other US mortgage service providers provide customers with very simple payment websites that allow the definition of additional principal payments during a transaction. These US servicers also provide a very simple amortization table for each client. TD BANK has heard this complaint from me since XXXX, and yet all they do is try to tie a customer to more banking products. Where is the oversight of this XXXX XXXX  operating in the US?

Company response to consumer: Closed with monetary relief