Consumer complaint received 2023-06-29
Company: Rocket Mortgage, LLC
State: MI
Product: Mortgage
Sub-product: FHA mortgage
Issue: Problem with a credit reporting company's investigation into an existing problem
Sub-issue: Their investigation did not fix an error on your report

Complaint:
On or about XX/XX/, I made a payment to my mortgage company for the normal monthly mortgage of {$2000.00}. On XXXX XXXX XXXX  ; we were notified by our bank of an insufficient funds notices for several items we had taken care of. Upon checking our bank account, we quickly confirmed the issue. Unbeknownst to us, our mortgage company had debited our account for {$2500.00} instead of the monthly amount we normally pay and had initiated online in the amount of {$2000.00}. Not only did they debit for the mortgage, but the payment included fees and charges. This larger payment caused our account to become overdrawn on multiple items presented to our financial institution. We spent the morning calling several companies that we had made payments to, trying to figure out how we would be made whole again and how we would get their payments ; but unsure how long it could take. Because we did not expect to pay this large mortgage payment, we attempted to research what had happened and what could be done to fix it. From my research and review of our online account, which showed the payment to be made of {$2000.00}, it appeared to be the result of a glitch in their mortgage system. We quickly reached out to Rocket Mortgage via Online chat. After chatting with the representative, and explaining the situation, we requested to have one of the charges reversed and was told that it was impossible to reverse any part of the mortgage amount, that this was not a practice within their company. Further, the online associate advised that we needed to speak to our financial institution ACH department to have the charges reversed. I asked the representative if I have the payment reversed if that would put us at risk of being late on our monthly mortgage and run the risk of a 30 day late notice, seeing that the XXXX of the month was only a day or two later. The Rocket mortgage online representative stated, that we would not be punished for reversing the charge, because they were noting the account and it was not of any fault of our own. I requested for the representative to submit a complaint on our behalf and to escalate it to a manager, because this was a major issue. Our bank account was in peril and we had to confirm everyone we made payments to, plus we did not have additional funds to make any further purchases of any kind. We reached out to our financial institution who advised us that they would do their best but could not guarantee anything. Our financial institution advised that when an issue like this happens, where a payment was processed due to a glitch or error, and not fraud, the best option is to reach out to the company where the error occurred and have them reverse on their end. They too advised that they could not reverse it but they would submit an inquiry on their end to be reviewed by escalation team. They then advised us to keep them posted. The next day I received a call from a Supervisor at Rocket Mortgage who had all the information regarding our issue. She advised that this is not something the company does and it may get denied to reverse payments of any kind and it would be very challenging to have this done seeing that it went against their practices. I advised that based on the research I had done, I believe it was a glitch in the system and requested someone from their IT team look into it, because I don't understand how the payment amount was altered. I also asked if she would at least try because we had a lot of responsibilities and it was causing an issue for us, at no fault of our own. She advised that if Rocket did agree to reverse the payment it could take up to 10 days for the payment to be reapplied. I advised her what the online representative had advised me to reach out to my financial institution for a refund. She advised that this was the best option. I told her that I had spoken to them and they were unable to help me. She further advised that she would submit the request and give me a call within 5 days to advise of the decision. While waiting to hear from Rocket Mortgage ; we heard from our financial institution who advised they were able to submit a reversal for the {$2500.00}, however, it would take some time for us to receive the funds. During this time, we had to endure a severe hardship because we had no additional funds we could access and had to get a short term loan to make up for the difference we lost ; not to mention the embarrassment of reaching out to the other companies attempting to explain what happened. I never heard from Rocket Mortgage regarding their decision. As we waited to receive the reversal of funds from our financial institution, the time came for us to make another mortgage payment. At this point during our waiting period, we had not yet received the funds, from our financial institution. When we finally received the funds, on XXXX XXXX XXXX we paid two months of payments, for XXXX and XXXX. We had to wait almost 30 days to make the mortgage payment for XXXX, so we made both payments for XXXX and XXXX in the amount of {$4100.00}. We didnt become aware of a potential issue until we submitted an application to refinance our mortgage with another company for some much needed home repairs and to take care of some bills. They advised that due to the 30 day late payment for XX/XX/2022 ; we would not be eligible to refinance and had to wait an additional year. We immediately contacted the Rocket Mortgage Supervisor we spoke to previously about the mortgage payment issue to alert her of the issue and to ask if she would be willing to change the reporting due to the circumstances surrounding our mortgage payment. She advised that she could not but she understood how this was impacting. We requested that she escalate it to her manager. When we finally heard from her manager, and advised about the circumstances we experienced, he also refused to update our credit report with a favorable reporting. We advised that it was unfair to report us 30 days late when we were waiting to receive our funds and the issue stemmed from a mistake caused by Rocket Mortgage ; who refused to correct their error. We further advised that we were required to make mandatory repairs to our home and other areas and we really needed the refinance to go through to allow us to take care of those requirements, otherwise we would be fined by our HOA. We also reminded the manager that the original online agent at Rocket Mortgage advised that we would not be reported 30 days late if we had the payment reversed. Thank you.

Company response to consumer: Closed with explanation