Consumer complaint received 2023-11-05
Company: PNC Bank N.A.
State: OK
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process
Sub-issue: Paying off the loan

Complaint:
On XX/XX/XXXX, after numerous phone calls and numerous filings of documents, I formally submitted a letter to PNC Bank and copying administrators that should be aware of the corporate business practices. My letter dealt with two issues that have impeded my ability to clear the title on my property. I will provide details important to both situations but in summary they are : 1. PNC issued a Lender Placed Insurance policy and has refused to comply with Consumer Financial Protection Bureau Section 1024.37 ( h ) ( 2 ) dealing with the reasonable clause.

2. The borrower has submitted a payment XX/XX/XXXX, the lender has cashed the check but refused to apply to the loan as of the date of the receipt. 
The two issues are interrelated and the second stems from the first. As such, I will address issue one first. 

Lender Placed Insurance Policy In XXXX of XXXX, I made a payment by check to my insurance carrier XXXX XXXX XXXXXXXX XXXX. Around XXXX, I became aware that the check had not arrived and after attempting to find the missing check, I delivered a replacement payment directly to the local office. The insurance carrier refused to make the policy retroactive to the lapse date. On XX/XX/XXXX, I received a letter from PNC that a Lender-Placed Insurance policy was put in place with a annual rate of {$8600.00} and structure coverage capping at {$620000.00} and no personal property coverage. Initially the policy was for a month but was cut off as of XX/XX/XXXX, when proof of coverage with XXXX XXXX XXXXXXXX was shown to be effective. PNC sent a second letter on XX/XX/XXXX, reducing the premium from {$700.00} to {$440.00}. The premium was for the period XX/XX/XXXX, to XX/XX/XXXX. 

I did some research that the charge must be bona fide and reasonable. I made several calls requesting information to support the reasonableness and was unable to reach the appropriate department. I submitted written requests in XXXX, XXXX, XXXX and XXXX of XXXX and received no responses. The written requests went to several of the departments. I received no response from PNC. 

The final payment of the loan was due XX/XX/XXXX, and a payment of {$1100.00} was submitted. The amount was the best estimate of the remaining loan balance with appropriate interest ( and was consistent with PNC supplied statements ).. The check was cashed on XX/XX/XXXX and is still in the PNC accounts. I got a call from a PNC representative on XX/XX/XXXX, and he stated that PNC would not accept the payment. We discussed the reason for the situation and the impasse. He was going to have the appropriate person contact me. After that I talked with several representatives and requested support for the reasonableness of the charge quotes from other carriers or the risk analysis to justify the amount. No information has been provided. 

My annual policy premium with XXXX XXXX XXXXXXXX was {$4000.00} and had structure coverage of {$720000.00}, other structures of {$72000.00}, Personal Property {$540000.00}, and Living Expenses of {$140000.00}. The policy with Standard Guaranty Insurance was for structure {$620000.00} and other structures of {$62000.00} no other coverage was provided. To summarize the policies XXXX XXXX XXXXXXXX coverage of {>= $1,000,000} in damage ; Standard Guaranty was for {$680000.00}. Although Standard Guaranty covers only 46 % of the property covered by XXXX XXXX XXXX, they have charged over 215 % of the XXXX XXXX XXXXXXXX premium. As of this date I have received no information that this charge is reasonable. In the most recent conversation with XXXX XXXX XXXX XXXX, XXXX, XXXX Client Relations, she stated that since PNC added no charges to the insurance charges then it was reasonable. I believe that this interpretation would gut the provisions of this section. The statutes are being applied to the Lender Placed Insurance policies and this was issued by Standard Guaranty. Standard Guaranty Insurance are the ones that issued and priced the policy. PNC has acted as gate keeper and obstructed me from understanding why the premium is 215 % of a normal policy premium with only 46 % coverage. 

Creditors Obligation to credit payment to the consumers account : The Consumer Financial Protection Bureau regulation 1026.10 states that A creditor shall credit a payment to the consumers account as of the date of receipt, except when a delay in crediting does not result in a finance or other charge. 

The payments to PNC have been submitted via checks issued from our account with XXXX XXXX XXXX. A check for {$1100.00} was issued and deposited by PNC on XX/XX/XXXX. I talked with a PNC representative on XX/XX/XXXX, and confirmed that the payment was for our loan. The amount of the check was derived from a PNC document reporting the loan balance and interest ( thru XX/XX/XXXX ). Subsequent to this I received a check from PNC for the amount paid and a notice assessing a late payment and additional interest. The check was dated XX/XX/XXXX ( 5 days after the due date of the payment ). After talking to several PNC representatives I received some promises on providing support for reasonableness and that the late fee would be waived ( I have not received information on either of these promises. Our account has been assigned to XXXX XXXX XXXX, XXXX Client Relations, I have quoted her above related to the reasonableness issue. Her position on the payment is that it was not sufficient to cover the remaining loan principal with interest and that the payment received would not be applied to the loan and so would continue to accrue interest. In summary, PNC has our funds and is paying us no interest but will be charging us interest on the loan balance that should have been reduced. 

In a phone call with XXXX XXXX XXXX on XX/XX/XXXX, I requested, and she agreed to provide : A summary of the loan activity, A written statement on PNCs position on the reasonableness of the charges, and A written statement on PNCs position on the treatment of the loan payment. 
I am hoping to resolve these issues and complete my business with PNC. The following documents are included with this letter : Documentation of numerous written correspondence with PNC PNC statement indicating the loan balance and interest due date of XX/XX/XXXX. 
Voided check XXXX for {$1100.00}. 
If any additional information is needed write or email me XXXX In a response to my letter to PNC, I was contacted with an XXXX also with Executive Client Relations. In our discussion, she acknowledged that the payment of {$1100.00} did cover the outstanding loan balance with interest but due to the escrow the payment could not be reapplied to the loan and would continue to incur late charges and interest. I offered to make full payment for the disputed insurance under protest and subject to dispute if PNC would reapply the funds held to the loan as of the date paid ( XX/XX/XXXX ). That would eliminate the late fees and the added interest. XXXX stated PNC would not do that but if we made a payment consisting of the insurance premium, late fees ( currently charged ) and the added interest they would then apply the retained funds to the loan and clear the mortgage. I am in process of getting written commitments that they will follow through with this. Due to the history, I am not confident that they are trustworthy.

Company response to consumer: Closed with explanation