Consumer complaint received 2024-01-31
Company: Freedom Mortgage Company
State: MO
Product: Mortgage
Sub-product: VA mortgage
Issue: Trouble during payment process
Sub-issue: Escrow, taxes, or insurance

Complaint:
XX/XX/2023 Freedom Mortgage disbursed from my escrow account a {$7900.00} check for a NEW XXXX XXXX XXXX XXXX XXXX with an active policy date of XX/XX/2023. 

XX/XX/2023 I contacted XXXX XXXX 's Insurance group @ XXXX to inquire about changing active policy date FROM : XX/XX/XXXX, TO : XX/XX/2023. To recap, XXXX has already received and posted to my insurance policy that {$7900.00} payment. The gentleman I spoke made it sound like a seamless transaction. 

XXXX then initiates a whole new policy, instead of just updating the 'active date of coverage ' because nothing changed in coverage. XXXX then sends a whole new invoice to Freedom Mortgage Insurance requesting a second payment of {$7900.00} from my escrow account. 

Freedom Mortgage, instead of reconciling or an internal trigger warning that escrow disbursement had already been sent, posted and applied to a XXXX Policy, sent a second check for that {$7900.00} which resulted in OVERDRAWN ESCROW ACCOUNT But to begin with, I had already initiated a call to Freedom Mortgage Insurance to provide them a personal conversation regarding changing policy date. I was concerned I would be invoiced 2 ( TWO ) times from XXXX. NO ONE at Freedom Mortgage heard this consumer. And ignoring my concerns placed my escrow account into a negative balance/status! 

On XX/XX/2023 I noticed that {$7900.00} disbursed from my escrow to XXXX, and called Freedom Mortgage. It was a waste of my time. After XXXX ( ONE ) hour of failure to answer my questions about 'why was a 2nd payment sent for a paid in full policy? and 'what FM planned to cure their error? ' I had to hang up. 

On XX/XX/2023, I called Freedom Mortgage again, XXXX, in FM insurance department, conferenced call to XXXX requesting assistance to cure this error. I had to listen for 1 ( ONE ) hour as 2 ( TWO ) financial representatives bantered which institution was at fault. FM claiming XXXX double invoiced AFTER payment was received. XXXX claiming FM shouldn't have disbursed for a policy changed only by date of activity and without coverage changes. 

I, as the consumer, do not care who's at fault, I was bringing to FM and XXXX 's attention this error occurred, my escrow account is now {$7900.00} OVERDRAWN, and I'm requesting due diligence to return the duplicate insurance payment back to my escrow account. 

As I write this FM has NOT followed up to correct their error. BUT, now, they are calling me, harassing me, wanting to know when I will write a check for {$7900.00} as my escrow account is still overdrawn. 

XXXX, CEO Advocacy Officer, XXXX XXXX XXXX, has not only refused to return those escrow funds XXXX should never have received, but has linked my mortgage escrow account/funds to my XXXX automobile policy, and continues to refuse to return my calls for an immediate remedy. 

It has been nearly 2 months FM and XXXX have taken out their incompetence of handling and disbursing escrow funds on me, the consumer, who is powerless. I assure you, I would never over pay a {$7900.00} bill OR agree to let a XXXX hold those funds hostage by linking escrow to private automobile insurance coverage. 

IS THIS LEGAL? FM DISBURSING 2 CHECKS FOR 1 POLICY OUT OF ESCROW WITHOUT CHECKS AND BALANCES? XXXX HOLDING ESCROW FUNDS WHICH OVERDREW ACCOUNT AFTER THEY DOUBLE INVOICED FOR SAME POLICY COVERAGE? 

HOW DOES A CONSUMER TAKE CHARGE OF OUR FINANCES AGAINST XXXX XXXX DOLLAR FINANCIAL INSTITUTIONS WHEN BOTH REFUSE A FAIR AND REASONABLE DISCUSSION AND CURE OF THEIR ERRORS? I DIDN'T DO THIS! 

WHY DO CONSUMERS NOT HAVE MORE AUTHORITY IN HOW ESCROW FUNDS ARE DISBURSED? 

AM I THE OWNER OF THAT FM ESCROW ACCOUNT? 

I'M ASKING FOR UPDATES FROM FM. 

I'M ASKING FOR FM TO STOP THEIR HARRASSING CALLS EXPECTING ME TO FIX THE PROBLEM I DIDN'T CREATE. 

I'M ASKING THE XXXX CEO ADVOCACY OFFICE TO CALL ME AND EXPLAIN HOW AND WHY XXXX DOUBLE INVOICED ME AND WHY IT WOULD BE ACCEPTABLE TO HOLD NEARLY {$7000.00} ADDITIONAL FUNDS FOR A POLICY THAT HAS BEEN PAID IN FULL. 

Additionally, I filed a Consumer Protection Complaint with State of Missouri 's AG 's Office-XXXX. I have been in communication with XXXX XXXX. It has been a challenge getting the AG 's Office staff to provide a true and meaningful conversation regarding above concerns. XXXX is a tad bit evasive and not what forthcoming in providing direct solutions from AG 's Office. XXXX dismissed me! 

I have had discussions with XXXX XXXX 's and XXXX XXXX 's staff who has been helpful providing this consumer protection bureau to seek assistance. 

As we can all imagine, I am no further knowledgeable in answers as to 'how and why is this allowed ; and when will my overpaid funds be returned to my overdrawn escrow account ; and am I the only consumer having problems of XXXX refusing to cure their financial errors, linking escrow funds to XXXX automobile products, and refusing a professional dialogue from CEO 's Office? ' THAT IS MY {$6900.00} ; IT IS NOT FM 'S MONEY ; IT IS NOT XXXX 'S MONEY TO USE AS THEY SEE FIT ; AND I WANT MY MONEY RETURNED TO ESCROW FROM WHERE IT SHOULD NEVER HAVE BEEN DISBURSED IN THE FIRST PLACE! 

Thank you again for all you do to protect consumers from bad business practicing financial institutions.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation