Consumer complaint received 2019-02-05
Company: FIFTH THIRD FINANCIAL CORPORATION
State: GA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Struggling to pay mortgage

Complaint:
This is an updated complaint to one previously filed because things have gotten much worse for me personally, family and my business. The improper negative mortgage delinquency payment reporting by Fifth Third Bank for XXXX thru XX/XX/2018 during the loan modification process has been devastating. The big issue here is that Fifth Third Bank did not warn us nor supply us with any correspondence that we would be reported as delinquent on our credit reports if we apply for and are approved for a loan modification. Had we known our credit report would have been negatively impacted we probably would not have applied for the loan modification. 

On XX/XX//18 I spoke with Fifth Third bank regarding 3 consecutive months ( XXXX, XXXX, and XXXX 2018 ) of delinquent mortgage trial payments ( related to loan modification ) that appears on the XXXX XXXX 2018 mortgage statement ( see attached for example ) and negatively reported on my credit report ( see attached ). The representative then went on to say that we are not really delinquent but the system will report these payments as delinquent because it is just the way the process works ; she then told me the reason for the delinquencies is because of the 3 month trial payments ( XXXX, XXXX, and XXXX 2018 ) related to the loan modification ( that was approved ) and there is nothing they could do to correct the credit report that impacted both me and my wife because that is the Fifth Third Process. All payments were made on time during the 3 month trial period and Fifth Third agreed that they were made on time but still reported the payments as delinquent. This has to be corrected immediately. 

The reason for calling Fifth Third bank was because I applied for a business loan for my company and I was denied the loan because of the negative reporting by Fifth Third. Instead, I was offered an extremely high-interest rate cash advance loan with a rate of almost 50 %. Because of the negative reporting by Fifth Third, this has caused a hardship on me and my family and the business as well. 

I told the representative that I needed my credit corrected because I was applying for a business loan and she did not care because she was following the banks policy. Then I asked her if she could give me a letter confirming that I am not delinquent so that I can show it to the lender for my business loan and she told me they can not email customers. 

It is hard for me to believe that a bank/mortgage company works this way by damaging a customers credit report especially when they know the payments were made on time and now as a result I am in a hardship for my business including jeopardizing making my mortgage payments because my income from my business will drop substantially since the working capital loan was not approved.

It is unconscionable that Fifth Third did not foresee that this could impact a customers finances. I have tried everything that I could think of to get Fifth Third to fix this including asking for a letter that I can send to my lender for the business loan and they did nothing to try and remedy the situation. The damage to me personally, my family and my business have been done. I had no other choice but to file a complaint with the CFPB and I am shocked that this is their policy. 

I am still having trouble getting a personal or business loan to support my family and help get my business back on track. In addition to this, I am having trouble paying my personal taxes and business taxes and I currently working with a third party tax help organization to help get the IRS to put me on an installment plan and/or to apply for assistance with the IRS Offer in Compromise program. The purpose of the loan that I was denied due to the delinquent mortgage payment reporting on my credit was to pay off the back taxes. The IRS placed a lien on my business in XXXX and I am currently working with XXXX XXXX to get the lien removed. The delinquent reporting has been devasting for my family and my business.

Company response to consumer: Closed with explanation