Consumer complaint received 2020-07-20
Company: U.S. BANCORP
State: TX
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Closing on a mortgage

Complaint:
We began our refinance process with US Bank on XX/XX/2020. US Bank is also the current servicer of our original loan, so we were refinancing with the same bank, however, throughout the entire process, it became abundantly clear that they have XXXX internal communication. There were constant errors and omissions that would be understandable if different institutions were handing off a loan, but this was all happening within the same bank. Figures changed dozens of times over the several months it took to finally close, we were overcharged for homeowners insurance that was with a company we no longer used, creating its own set of headaches and needing us to seek a refund check, but we finally closed on Friday, XX/XX/2020. 

Our present concern is that our existing loan payment with US Bank was not due until XX/XX/XXXX. I asked if, since we closed on XX/XX/XXXX, if that payment was still due we were told very clearly, no. It did not need to be paid. Our next payment on the new, refinanced loan, per our First Payment Letter, would be XX/XX/XXXX. However, on XX/XX/XXXX, I received a call from US Bank collections, asking where our payment was for XXXX. We were told we now have a late fee because we never paid. I told this person that we had refinanced the loan a week ago. We were told there were absolutely no records on our loan that it had been refinanced. US Bank has not even paid off the loan ( to themselves ). As far as this " half '' of US Bank is concerned, our old loan is still in full swing and there is no notated intention of our refinance with the " other half, '' despite the hundreds of pages of notarized documents I have that say otherwise. We are now being threatened by their collections unit to pay the amount we owe plus a late fee, or we will have a derogatory mark placed on our credit. We have never had negative credit notes in our entire adult lives, so we take this threat seriously. We have high-800 scores and guard them carefully. We pay everything in full and on-time. The only reason this balance has not been paid is because the loan has been refinanced, and we were told by our US Bank closer not to pay this old balance that would be negated by the payoff. However, it seems US Bank has defrauded us and failed to use that payoff towards our original loan. 

After we were promised on the XX/XX/XXXX call that they would notate the account as in refinance so that we would not be contacted again about this error, I contacted our closing agent with US Bank. She said the title company had issues wiring the payment and would do so first thing Monday, XX/XX/XXXX and cover all late fees. However, on the afternoon of XX/XX/XXXX, we received yet another call from US Bank, trying to collect our XX/XX/XXXX payment plus late fees. It appears they never notated the account as promised on Friday in the " first half '' of the Bank, never wired the funds on Monday as promised by the " second half '' of the Bank, and still have no idea what either side is doing. 

US Bank has repeatedly shown gross incompetence throughout this process and is now threatening our credit and to harm us financially. This can not stand. We have taken nearly four months of beatings from them and it has to stop. We kindly ask that our regulators look into this gross misconduct and abuse by a bank that apparently has every intent to defraud customers, or at the very least, can not competently close one of the most common, straightforward loans in US history.

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