Consumer complaint received 2018-02-23
Company: U.S. BANCORP
State: LA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
I currently have an active mortgage with XXXX XXXX XXXX XXXX. Since origination of loan the company has had my taxes, and insurance in escrow. I have trouble in the past ( when loan first began ) with payments to insurance companies however I am filing a complaint on my most recent issue. We obtained a new insurance provider ( XXXX ) on XX/XX/XXXX due to lower premium. XXXX XXXX XXXX XXXX was contacted at this time and I spoke to the escrow department to notify them of the change in companies and that they would be receiving a statement for payment from new company and to please pay accordingly. My previous home owner 's insurance ( XXXX XXXX ) was cancelled. XXXX XXXX sent notice to mortgage company along with refund of unused policy to XXXX XXXX XXXX XXXX. I received a notice in the mail from XXXX a few weeks ago stating my policy was not paid and if the policy was not paid by XX/XX/XXXX it would be cancelled. I notified XXXX XXXX XXXX XXXX   escrow department immediately. I was informed that they never received a statement and was instructed to have them resend statement and provided me with a current fax number in which to fax to. I contacted my agent immediately and provided information in which policy and statement was faxed. My agent contacted me today to notify me that my policy was cancelled as of XX/XX/XXXX due to non-payment. Upon contacting US Bank escrow department again I was asked for XXXX 's information and that they would process a payment however it would take 3-5 business days - which meant I would have to continue with no coverage on my home. I requested they call XXXX and provide payment over phone so policy may be reinstated immediately and I was told they can not do that. I then asked for a supervisor. The supervisor stated that they received the policy information from XXXX on XX/XX/XXXX but a payment was not made as my policy was paid up through XX/XX/XXXX - despite it being a different company and the US Bank being previously notified of cancellation with XXXX XXXX and receiving a refund from XXXX XXXX. I asked to have my account removed from escrow and that I would go pay for the policy today out of my pocket to ensure coverage and I would manage payments for insurance and taxes. I was told I could not do this without having to pay. I requested US Bank pay this fee due to it being a result of them not paying my policy that caused me to be delinquent and have a laps in coverage. I was continually told they could not do that nor could they pay the policy any sooner than what I was previously told. I then asked for a higher supervisor. After being on hold for prolonged period of time I was to be called back by higher supervisor to discuss issue as higher supervisor ( which I never spoke with ) was trying to determine if they could mail payment faster. 
I was required to go into my insurance agent office today and make payment to have coverage reinstated. In addition to my policy premium of {$1100.00} I was also required to pay an additional {$200.00} due to policy placed into effect XX/XX/XXXX but never paid. After returning from agent 's office, I reached out to XXXX XXXX XXXX XXXX again to notify of increase in premium due to cancellation of coverage from non payment and request again that they remove my account from escrow at no cost to me. I was informed that they will over night payment of {$1100.00}. I informed representative that an additional {$200.00} had to be paid due to cancellation of coverage with no response, attempt or offer to adjust payment amount. I requested again to have account removed from escrow. I was instructed again I would have to pay a few for this and there was nothing more they could do to remedy the situation. I have a job and family in which I do not have 4-5 hours in a day to remain on the phone with a company having to notify them of their error and when policies need to be paid. US Bank agreed to manage my insurance policies and tax accounts when account was places in escrow, I should not have to contact them several times to submit payment as it is their responsibility. I should also not have to pay policies out of my pocket to ensure coverage is reinstated and I am not without coverage when I make a payment every month to US Bank for escrow. What would happen if I happened to not have the funds available to make a payment - I would just have to be ok with my home not being covered until a payment is made and processed from US Bank? What would then happen if within that time frame my home is compromised in which I need to utilize homeowner 's insurance policy - whose fault would it be then? My insurance company gave US Bank more than one option to pay today however US Bank stated they could not pay over the phone as payments had to go through a process.

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