Consumer complaint received 2017-05-09
Company: PNC Bank N.A.
State: MA
Product: Mortgage
Sub-product: Home equity loan or line of credit (HELOC)
Issue: Trouble during payment process

Complaint:
To Whom i t May Concern : I have had a HELOC with PNC ba nk for almost 10 years. It started as  a National City HEL OC but was bought  by PNC B ank. I have NEVER been late with an interest only payment throughout my ENTIRE 10 year term. In  XXXX  of  XXXX  I was made aware on my credit report that I had a late payment t o PNC. After calling PNC ban k here is what I discovered :  1.  My fixed rate lock 3 % HELOC underwent a rate increase to 3.5 % even though my FRL was a t Index +  0 % margin with a minimum of 3 % ( based on 3 year treasury note, currently 1.5 % ).    2. PNC ha d the wrong address and I was not getting statements or notifications of a rate change.    3.  My rate change took effect in  XXXX  of  XXXX  After a lengthy conversation with the customer service rep, even thought i disagreed with any rate change, I agreed to pay the increase in rate interest amount due from the last 9 months of the increase ( it was a  XXXX  $ increas e ). I  also increased my interest monthly auto-pay to equal the amount due with the rate increase. I however, refused to pay any late fees as I disagreed with the legality of the rate change as well as was never notified of the change. The representative told me they would submit my dispute to client relations. I never heard from  PNC  afterwards.     In  XXXX  of  XXXX  I noticed further late payments to  PNC reported on my credit. I followed up with PNC explaining to customer servic e what happened in  XXXX  and it turned out not only were the late fees not disputed to client relations as I was told, but the rate had changed yet again, and late fees were getting compounded monthly. After many phone calls, I finally was able to speak with someone in  executive  client relations,  XXXX   XXXX .  XXXX   XXXX  was very polite and mentioned he would research the entire account and get back to me.     Today,  XXXX   XXXX ,  XXXX  I had another conversation with  XXXX   XXXX . He informed me that my mortgage was a VARIABLE rate, not a fixed rate, and that in fact it was within the banks justification on the loan to raise the rate based on  XXXX   XXXX . I was clear this was not my understanding of what kind of HELOC I had. I asked for documentation showing that the checks I cut were variable rate checks and not FRL checks, but since my checks were cut more then 7 years ago, the bank was unable to provide any documentation. He confirmed that my monthly payments HAD always been made on time, but with the increase of rate I was being charged both late fees and over the limit fees. He confirmed that the total amount in late fees was upwards of {$500.00}, and the bank has credited back {$120.00} of these fees as a courtesy. I proposed a compromise - I would split the late fees accrued with the assurance that the bank would remove any " late payment '' posts on my personal credit. As stated I have never been late on a payment to PNC in the 10 years I have been a customer.  XXXX   XXXX , although polite, stated that he was unable to offer any additional then the  XXXX  $ already credited, and that I was also unable to escalate the issue any further. After mentioning I was reporting the issue to the consumer protection bureau, he then stated he would revisit with his  executive  team, but the banks perspective was not going to change.

Company response to consumer: Closed with explanation