Consumer complaint received 2023-12-21
Company: M&T BANK CORPORATION
State: CO
Product: Mortgage
Sub-product: VA mortgage
Issue: Trouble during payment process
Sub-issue: Escrow, taxes, or insurance

Complaint:
On XXXX XXXXXXXX XXXX I spoke to M & T Bank regarding my lapse in insurance coverage that I was not aware of. After an explanation from the Specialist they explained I had not had insurance since XXXXXXXX after insurance was not paid by the mortgage company. The specialist advised me to get insurance ASAP. 
On XX/XX/XXXX XXXX M & t bank sent me a letter stating that it was my second notice stating that insurance had expired and I needed to provide my insurance or they would purchase an insurance for me. 
On XX/XX/XXXXXXXX XXXX I received the final notice that stated they had purchased an insurance for me XX/XX/XXXXXXXX for {$1700.00} and that I could cancel that insurance after I purchased my own insurance. 
On XX/XX/XXXX I purchased my insurance from XXXX and sent them the paperwork thinking I would be getting a refund of {$1700.00} that was charged to my escrow account. 
On XX/XX/XXXX I called M & T Bank asking about the correction that needed to be made and they stated that the {$1700.00} that was charged was not from XX/XX/XXXXXXXX going forward but was charged from XX/XX/XXXX2XXXX until XXXXXXXX. I explained that I was not notified that I did not have insurance until the XX/XX/XXXXXXXX phone call I had and should not be charged for a previous time frame since I had just been notified by phone call in XX/XX/XXXXXXXX XXXX and I had only received letter in XXXX and XX/XX/XXXXXXXX about insurance lapse. I explained I would have no ability to buy another insurance policy that could be backdated from XX/XX/XXXXXXXX  to XX/XX/XXXXXXXX since I was not notified by bank until XXXXXXXX XXXX 
Specialist agreed that I would be unable to purchase my own backdated insurance but the they are able to do that and I would have no choice. 
I explained I was never given any notice to be able to purchase insurance in XXXX as neither was aware of the lapse in coverage. they explained that it was not their fault and by law they had the ability to charge me anything they could as I could not get any other insurance. 
I then cited 1024.37 Force-placed insurance were is states that Before a servicer assesses on a borrower any premium charge or fee related to force-placed insurance, the servicer must : ( i ) Deliver to a borrower or place in the mail a written notice containing the information required by paragraph ( c ) ( 2 ) of this section at least 45 days before a servicer assesses on a borrower such charge or fee ; I explained I did not receive the final notice until XXXXXXXX  and at that point I could not purchase any back dated insurance but they refused to help me stating that they can legally purchase any insurance they need. 
This is theft. the mortgage company has stolen {$1700.00} from me.M & T Bank purchased an insurance policy on XXXX for XXXX to XXXX with out written notification allowing me any options. that should be illegal.

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