Consumer complaint received 2017-07-05
Company: SUNTRUST BANKS, INC.
State: MN
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
Fundamentally I write regarding two separate abusive practices by SunTrust Mortgage. The first relates to their process of requesting a " payoff statement '' which they use to add additional days of interest, and for which they require certified funds. I 'm not sure what the purpose of requiring certified funds is ... based on how slowly they process things, they would not release the mortgage until after my funds had cleared. I consider it abusive in that they are refusing to accept a payment lawfully made to them in whatever form that it comes. <P/> The second relates to their admitted refusal on XX/XX/XXXX of my monthly payment made by me by check. Because I paid additional principal in an amount that would have satisfied my mortgage, they returned the check., despite the fact that I had not requested a payoff statement, and provided me with one. <P/> To add further information, I submitted a check for {$53000.00} that was received by SunTrust before XX/XX/XXXX. Their return letter, which I will upload as a document if I am able, was dated XX/XX/XXXX. My principal balance as of that date was {$52000.00} per their payoff statement ( which it says I requested, which is false ). Calculating that they would have received it prior to the end of the month, plus miscellaneous fees that they would charge, I wrote a check for {$53000.00} to them and mailed it on XX/XX/XXXX, clearly marked as my {$800.00} payment due XX/XX/XXXXas well as additional principal. Even if they require a " payoff statement '' be made in cashier 's check form, surely they can not refuse a monthly payment made by check?
<P/>
Instead, they sent me their letter on XX/XX/XXXX which stated that they would be refusing my monthly payment because it was not in cashier 's check form, and providing me with a payoff good throughXX/XX/XXXX which of course included more interest through XX/XX/XXXX <P/> When I called SunTrust, it appears I was caught in a catch 22 ... they would n't accept my monthly payoff, because it included sufficient principal in addition, as admitted by them, as would be required to pay off the loan. And yet they also would n't accept that payoff because it was n't in a cashier 's check form. Again, doing the math backwards from their payoff statement, the amount submitted to them actually would have paid off the loan, which was great. The payoff indicates that the principal due was {$52000.00}, and that they would charge me an additional {$58.00} recording fee. Interest through ( generously since this is the date of their return letter ) the XX/XX/XXXX would have been {$250.00} for a grand total of {$53000.00} and change ... less than the {$53000.00} check that they refused, which was broken down by monthly amount as well as additional principal.
<P/>
Whether they wished to consider the loan paid off is a separate abusive practice, but refusing my monthly payment, and potentially forcing me to incur late fees if I was n't informed of their refusal to accept US funds in check form for a monthly payment, also to their benefit, seems additionally unfair. So by the time they returned this payoff statement to me, which was generously through XX/XX/XXXX they had managed to get to a total of {$53000.00}, or an additional {$120.00} for which they could feather their stockholders ' nests with, for the privilege of them refusing to process a payment made in lawful US currency and apply additional principal all as directed by the form which they mailed me.
<P/>
While as I noted, I think that the practice of requiring " certified funds '' for a loan payoff is ludicrous, I find it even more unfair that a bank can refuse a monthly payment for the reason that additional amounts are included with the payment. They also note in their " payoff statement '' that " short payoffs will be returned '' urging me to contact their Client Services Department. Suntrust really appears to want to get you coming and going ... a payment of too much they will return, a payment of too little they will return. A payment made via check will be returned ... yet payments of less than the payoff amount are accepted every month.
<P/>
Of course, I have no choice but to comply, since otherwise they will bruise my credit and make it impossible for me to take out another loan to buy a house. So here I am, forced to pay additional money to them because they acknowledge they refused an amount equal to more than the debt owed by me. Most of all, I would like to end this abusive practice of banks refusing to accept payment by check for debts owed to them. People can calculate interest due to the bank, understanding of course that mortgage interest is in arrears, why should they request a " payoff statement '' and be charged for said payoff statement ... when they can plainly calculate what is due?

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