Consumer complaint received 2018-01-10
Company: U.S. BANCORP
State: OR
Product: Mortgage
Sub-product: Home equity loan or line of credit (HELOC)
Issue: Trouble during payment process

Complaint:
In XX/XX/XXXX we took out a loan to do some home improvements from US Bank. Our original mortgage was with XXXX. No lien was filed for the home improvement loan received from US Bank. In XX/XX/XXXX, we refinanced our home and the mortgage was placed with XXXX. This is important because had US Bank filed a lien with XXXX County OR, the US Bank loan would have been paid off as a second mortgage when we refinanced. But there was no record of one when the title search was done. 
In XX/XX/XXXX, we sold our home. Again, a title search as done and there was no lien filed by US Bank. Had that existed, it would have shown up as an incumbrance. It did not. I had no knowledge that there should have been a lien or that US Bank should have filed one and that they did not. There are many types of loans some with liens and some without. 
I take my responsibilities seriously. At no time have I disputed that we took out the loan, or that repayment was needed. I agree to this. And for 18 years I have made a monthly payment to US Bank. That includes every month since the house was sold. I have attached the closing statement for the sale of the home that shows the payoff being made to XXXX. 
In early XX/XX/XXXX I was contacted by US bank about the lack of homeowners insurance. I supplied US Bank with the information that the home was sold in XX/XX/XXXX. They did tell me that they were listed as the second mortgage and I could not have sold my home without the loan being paid off. I supplied US Bank with information proving that they did not have a lien on the property and it was indeed sold. I received a letter from US Bank confirming that they were removing the insurance and I would not be charged for it. That letter is attached. 
In the summer of XX/XX/XXXX US Bank again trying to force me to insure a home that did not belong to me. 
I did call my insurance company to have a talk with them about this situation. I was told that you can not insure a home that you do not own. Additionally, I was told that if there are two insurance policies on one residence, both policies will not pay. If the house burned down, the insurer for the new owners would pay and the claim would be denied by XXXX XXXX XXXX whom US bank uses for the force placed policies. The policy from XXXX XXXX says it will not pay if there is another policy in place ; which there is. So there is no benefit or consideration for myself or US Bank for the {$5500.00} that are telling me I have to pay. 
In my numerous conversations with US Bank on this subject, they have told me that they do not care and that I will pay for the insurance. I have tried to escalate this, but even the supervisors say I had to pay for insurance on a home I do not own. There is no human you can sit down with and discuss the situation. Just the people in a phone center somewhere. 
On XX/XX/XXXX, I had enough money to pay off the balance of this loan. The balance listed was {$3700.00}. I paid that. On XX/XX/XXXX I looked to make sure that the payment was credited. The loan now showed a balance of {$16.00}. I paid that on XX/XX/XXXX. I had previously set up a payment to be paid on XX/XX/XXXX for the normal monthly payment of {$220.00}. I had forgotten to cancel that and that was paid also. So, in my mind I paid of the entire loan on XX/XX/XXXX and overpaid {$220.00} in XX/XX/XXXX. 
The payments of {$16.00} and {$220.00} are not being applied to the load. US Bank has now placed those monies in suspense. I have attached a statement from US Bank to support that. 
This is not, nor has never been about the loan or the repayment. This is about US Bank forcing me to pay for an insurance policy that will never be used. Lets explore that for one minute. The house burns down. The new owners, the XXXX, file a claim with their insurance company. Their insurance company pays out with XXXX XXXX XXXX as the lienholder. US Bank will never even be aware as they are not listed as a lienholder and therefore not on the new owners insurance policy. No one will ever contact them or XXXX XXXX. If for some fluke of nature, I find out the house burns down and I want to file a second claim for the value of the home, it would be denied as the claim was already paid by the XXXX XXXX. So, there is no benefit to US Bank or myself for paying for the homeowners insurance. 
How can a bank blackmail a customer into paying for insurance that can never be collected? They are holding my loan payoff hostage demanding payment for not one, but two years insurance. In XX/XX/XXXX, I received a copy of an insurance policy from XX/XX/XXXX to XX/XX/XXXX. I had never seen this before. If they did not know the house was sold, is it a coincidence that the policy start date is the day after the house was sold? Either way, I already have a letter from US Bank ion XX/XX/XXXX saying it was removed and I would be credited as the house was no longer owned by me. 
Secondly, comes the question about the second policy. If US Bank had a right to insure a property that they do not have a lien on and that I do not own, the loan was paid off on XX/XX/XXXX. Why would I have to pay for entire year instead of 2 months. It should have been prorated. I can not cancel the policy as it is not mine. And when cancelled where does the refunded amount go? Not to me, but rather back to US Bank. That is pure profit for them to put in their pocket, paid for by me. This can not be right or fair. 
My checking and savings accounts have been with US Bank for 25 years. I am astounded that this is how they treat long standing customers who pay their bills on time. I can not get anywhere with them and I feel this is wrong and unethical. I have no idea if it is even legal.

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 monetary relief