Consumer complaint received 2021-11-01
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: KY
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
This is the third complaint filed for violations of 12 CFR 1026, Regulation Z of the Truth in Lending Act, specifically provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act regarding mortgage loan servicing and prompt crediting of mortgage payments. Previous complaints have been filed in XXXX ( Ref # XXXX ), XXXX ( Ref # XXXX ). 

My mortgage payments are not being processed IAW Bank of America 's policy and federal guidelines. My mortgage is currently paid 12 months in advance ( including advance interest ) and the next payment due date is XX/XX/XXXX. This has not been requested by me, and I have made numerous phone calls, and emails to have this corrected to no avail since XXXX. 

My last phone call to BoA was on XXXX XX/XX/XXXX w/ XXXX when I informed BoA that my mortgage was paid thru XX/XX/XXXX, and that the payments were not being properly applied. I had previous called on XX/XX/XXXX in effort to correct this- she was able to see notes referring to this call and my request. She said she would research this and correct it. It was not corrected, and there was no follow up. 

I have written correspondence to XXXX XXXX, and XXXX XXXX, BoA managers, who responded to CFPB complaint XXXX. They initially corrected the issue, and then explained via telephone that their system was unable to process the payments. I have a recording of this phone call. The following is a transcript of the email : -- " XXXX, Thank you for the prompt response to my formal complaint to the CFPB. Per our conversation today there should not be any ambiguity as to what the issue is and what my desires for resolution are : 1. Correct all mid-month payments to principal only ( latest errors date to XX/XX/XXXX ). 

2. Ensure all future mid month payments are treated as principal only payments. 

I began making a record of calls regarding this issue to Bank of America as far back as XXXX XX/XX/XXXX. Although the issue dates back to XX/XX/XXXX based on my mortgage statements and notes. During the XXXX XX/XX/XXXX call, XXXX made an annotation on the account to prevent this from happening in the future. XXXX ( supervisor ) informed me that it is not possible to pay more than 30 days ahead per regulations under the Truth in Lending Act ( TILA ). She further stated that " We had a lot of problems where a lot of customers were paying in advance but not seeing the principal go down. '' When I asked her how I could ensure that my mid month payments in the future would be designated principal only her response was, " honestly, I don't know. '' A subsequent conversation with XXXX XXXX- ( BoA Supervisor, XXXX XXXX ) also ensured that notes on the account stated " Customer desires all payments on the XXXX to be posted to principal. '' There were similar conversations on XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, etc, etc. Please review all of your records to see the numerous phone calls, most escalated to a supervisor, who all are on your recorded line telling me that excess payments will be applied to principal. 

The most recent supervisor was XXXX XXXX supervisor Customer Service Mortgages, XXXX, FL, who suggested making the payments on the XXXX or the end of the month. When I asked if that would fix the issue and ensure that the payments would be applied to principal his response was, " you never know. '' XXXX, these responses from BoA employees and supervisors are completely unacceptable. The lack of professionalism and numerous violations of stated BoA policy and federal regulations in the application of my mortgage payments despite my pleas to the contrary ; rises to the level of malfeasance. 

It is my sincere hope that you and your staff will be able to resolve this issue and ensure that future payments to Bank of America are correctly applied in accordance with BoA written policy, and all state and federal regulations. Any further misapplied payments will result in my escalation of this issue to the appropriate authorities and legal remedy. 

Thanks for your time and consideration. 

Respectfully, XXXX XXXX '' -- - This is the third CFPB complaint regarding BoA 's reluctance to correctly apply mortgage payments IAW policy and federal regulations. I want my mortgage payments correctly applied, all pre-paid interest placed towards principal, all unapplied funds applied to principal, corrected tax records for XXXX, XXXX, XXXX, and a correct XXXX. 

I am requesting Bureau enforcement action to investigate this case for gross corporate malfeasance, as well as impose penalties under Federal consumer protection law 12 CFR 5497 in accordance with established redress. 



Thank you for your time and consideration. 

Respectfully, XXXX XXXX

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 non-monetary relief