Consumer complaint received 2017-09-30
Company: JPMORGAN CHASE & CO.
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Problem with a credit reporting company's investigation into an existing problem
Sub-issue: Investigation took more than 30 days

Complaint:
I have both a mortgage and a Home Equity Line Of Credit ( HELOC ) with Chase. The HELOC was paid on an interest-only basis for the first 10 years, starting in XXXX XXXX, and then switched to a principal and interest basis in XXXX XXXX. The change in payment basis more than doubled the monthly payment on the HELOC. It increased from XXXX to XXXX. 

I received no prior notification from Chase that the payment basis was about to change. I discovered subsequently, in XXXX XXXX, that the reason I did not receive any notification was because Chase had not updated my mailing address. It had my old address on file for my HELOC but the correct, updated address for my mortgage. The representative with whom I spoke on the telephone in XXXX XXXX explained that because the new address was an international address in the XXXX XXXX, it needed to be entered manually. This was why the address I provided for the HELOC did not automatically update at the same time the mortgage address was updated. I note that my international phone number, however, did in contrast automatically update for the HELOC. 

I also did not receive any prior electronic notification even though I had and still have configured electronic alerts from Chase. For reasons then unclear to me, Chase 's postal and electronic notification systems did not work in this instance to provide prior notice of the payment basis changing. 

Chase informs me that they had sent me ( and my co-mortgagee, XXXX XXXX ) two letters by post in XXXX and XXXX XXXX informing me of the change in the payment basis. Both letters, however, were sent to the old address. I attach a copy of the XXXX XXXX letter showing the incorrect address. 

I first learned the payment basis had changed in XXXX XXXX when examining my bank account. When I queried this with Chase, through their secure message system, they confirmed the payment basis had changed in XXXX XXXX. I attach a copy of the secure message exchange XXXX XXXX. 

I then discovered in XXXX XXXX when examining my bank statement again that my XXXX and XXXX XXXX HELOC payments had not cleared because there were insufficient funds in my account. Again, I received no notification - either by post or electronically - that these payments had been missed. Again, this was because the address was still the incorrect address on file for the HELOC. I immediately called XXXX and made these two payments over the telephone. I also asked whether they had been reported to the Credit Reporting Agencies and had been advised that they had. I also asked if this could be amended and received a response several days later to the effect that it could not be amended because Chase had given me prior notification of the change in the payment basis. 

I asked Chase to review the decision and it was escalated to their Executive Office through their internal complaints process. The decision, however, remained unchanged. I attach a copy of their final decision. 

I believe Chase ' final decision is unfair because it was a failure on the part of Chase that its systems did not automatically update the address on both the mortgage and HELOC, even though I had provided the correct address. Had the correct address been provided, I would have had enough time to ensure there were sufficient funds in the account. I would also have received a notice that I had missed the XXXX and XXXX XXXX payments. At the very least then, I would have been able to ensure there were funds in the account to cover the XXXX payment if I had known of the missed XXXX payment. But Chase insists on reporting that I am to blame for missing both the XXXX and XXXX payments. 

I would note that I have held both owned the property against which both the mortgage and HELOC are secured since XXXX XXXX. I have not - until now - missed a single payment on either product.

Company response to consumer: Closed with explanation