Consumer complaint received 2018-08-01
Company: U.S. BANK NATIONAL ASSOCIATION - SAN FRANCISCO MAIN BRANCH
State: CA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
XX/XX/XXXX Seniors, if you want to feel safe and your assets secure do not get involved with the Union Bank. In XXXX of this year, I received a letter from XXXX XXXX, in the XXXX XXXX office, that they had converted my equity account to a Fixed Mortgage account, as requested. with fully amortized principal and interest payment, first payment due on XX/XX/XXXX. I didn't, make a mortgage payment in XXXX, as instructed ; but I immediately receiving arrears dues and penalties notices ; but that was just the beginning. 
It took about six months to resolve the billing issues. But recently, the Bank resurrected that closed equity account, claiming that that the fixed mortgage account is similar enough to the equity account so that the old equity account conditions were applicable, so the Bank removed the advantage of civil and judicial protections of a traditional mortgage ; and now receive statements on any one of three dysfunctional fictional accounts for just the single property. The Bank refuses to correct the billing. How shall I pay the mortgage? Shall I refuse to pay to a fixed option account, a recent invention of the XXXX XXXX office, which is not even listed in the Banks own glossary of products and services? 

The lack of precise rules as to the treatment of routine transactions leads us to continue to express doubts as to the accuracy and meaning of the Banks statements. Although auditing standards require that the principles must be consistently applied from month to month, the Bank can not justify three accounts for my property, one of which is supposed to represent the fixed mortgage, but is never sent out to us. Each bears a different number, under the control of the Bank ; established without Notice and Agreement to the customers. 

When the Bank initiated the equity account, the transfer of the balance to a fixed rate account after a ten years period, was misrepresented to us as a fixed rate mortgage. The Bank made a material misrepresentation, intended to induce reliance of a material fact, which was in fact relied upon to our detriment. Equity account loan agreements are now considered toxic, and the government has pursued actions to mitigate the effects. On our part we understand now that all three of the false accounts in our names may be used for false entries ; a symptom of financial elder abuse. After seven months of psychological warfare, enduring threats, harassment, and extortion by false foreclosure from the Bank ; as of XXXX, the Bank rolled back the accounting to XX/XX/XXXX, when the account was formally closed, while it made a number of corrections. 

Customers accounts may be manipulated by having arriving payments chopped up in pieces, what the Bank mistakenly calls segmenting, which is actually how large and complex businesses arrive at a comprehensive picture of a complex organization. But practiced by the Bank it is actually a consumer fraud whereby deposits are split into numerous pieces, then placed in fictitious accounts. The customer is then penalized for partial payment resulting in negative amortization, charged to the customer. Although the targeted account has lost its utility to the customer. 

We have asked the Bank, from a form book, choose a Fixed Rate Mortgage account and give it a unique number, representing just one account, It would be appropriate, equitable and resolve all issues. The Bank does not reply

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