Consumer complaint received 2019-11-01
Company: U.S. BANCORP
State: IL
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
US Bank contradicted itself by charging {$520.00} per month in XX/XX/XXXXwhile the attached letter from US Bank states that the payment was {$480.00}.

US Bank is in breach of the Settle Agreement of XX/XX/XXXX by changing the agreed monthly payment, did not explain itself after numerous inquiries, charged attorney fees in XXXX and XX/XX/XXXX, not applying payments on the effective date, refused payments, and refused to send requested documents. US Bank also has charged numerous " Property Preservation '' fees beginning on XX/XX/XXXX. ( see Customer Account Activity Statement ) This is more than a year and a half before US Bank falsely claimed that I was in breach of the note. Property Preservation fees are paid to someone hired or contracted to " preserve '' the property, particularly when the property is abandoned. At no time was my property abandoned, and at no time did anyone come onto my property to do any work to preserve it. Please keep in mind US Bank charged my account {$15.00} each time. Which begs to ask, what work can be expected for {$15.00}? Did they sweep the sidewalk for 5 minutes? Who at US Bank decided on the need to preserve my property and who did the work? 

Attached is the US Bank letter dated XX/XX/XXXX, Customer Account Activity Statement supplied by US Bank, receipts from hand delivered payments to local US Bank branches. Comparing the dates on the receipts and the dates on the Customer Account Activity Statement, it is obvious that US Bank applied only 2 receipts on the effective date, while delaying or refusing 102 payments. 

In a letter written XX/XX/XXXX by XXXX XXXX, Customer Advocacy Specialist for US Bank, she states the following : The term " without '' : After I wrote stating that US Bank is operating without the Security Instrument and the Note, Ms. XXXX thought " without '' meant that US Bank was not in possession of the Instrument and the Note, and includes a copy of both in her response, instead knowing the meaning of " without '' is the opposite of " within '', thereby disregarding all proof I provided of US Bank using a suspense account, delaying payments, rejecting payments, and requiring certified funds. 

Payment and unusual account activity XX/XX/XXXX : Ms. XXXX wrote " your account was brought current and due for the XX/XX/XXXX installment. '' The account was not taken out of foreclosure untilXX/XX/XXXX as per a letter written by US Bank attorney Ms. XXXX. Shortly after payment was mailed to Ms. XXXX law firm in XXXX. US Bank applied the payment on XX/XX/XXXX. On XX/XX/XXXX US Bank levied a {$15.00} late fee as per the Customer Account Activity Statement. On XX/XX/XXXX US Bank charged {$690.00} and {$380.00} as an Attorney Advance. On XX/XX/XXXX US Bank  accredited the loan {$1000.00} and also charged the loan {$1000.00} as Corp Advance Adjustment. See Customer Account Activity Statement. 

Payments applied effective date of receipt : To the readers be advised that all payments beginning XX/XX/XXXX were delivered to local US Bank branches, and once in XXXX, Indiana. Ms. XXXX wrote " payments made at a branch are mailed to our payment processing center creating a slight delay in processing payments ; however, once payments received and processed, the payments are applied with an effective date of the day it was received at the branch. '' Ms. XXXX did not mention that US Bank can electronically process payments at a branch and is applied the day after. As per the Customer Account Activity Statement only 2 of the electronically processed payments were applied the " effective date of the day it was received at the branch ''. Also, no payment mailed from the branch was applied the effective date received ( see Receipt images ). Furthermore, some of the payments delivered to the branch were processed electronically, but most of them I was told had to be mailed. Ms. XXXX did not answer my question of what the US Bank policy is on whether a payment is to be processed electronically or to be mailed in. Neither did she answer by what law based authority nor who at US Bank makes this distinction. 

Partial payments : Concerning partial payments Ms. XXXX wrote " we are not able to credit your mortgage account payment, until the entire amount of your principle, interest, and escrow has been received. '' She did not answer my question of US Bank policy to not credit partial payments immediately. But she then states " funds received that were less than the amount of your payment and the account the due date has passed, the funds are applied to your suspense account until additional funds were received to credit the entire payment, or possibly returned depending on the default status of the account. '' As per the Activity Statement no partial payments received before the due date were applied the effective date of receipt. Also Ms. XXXX did not answer my question of US Bank 's use of a suspense account not being enumerated in the Security Instrument or the Note. ( Suspense accounts are used by corporations to hold funds that are either not known of what account to apply funds to, origin of funds not known, or suspected illegal use such as drug money. None of these descriptions apply to my mortgage account being that US Bank knows who I am, what account the funds are to be applied, and that my funds are not of illegal origin. Therefore, funds that US Bank applied to " my '' suspense account should've been applied to the escrow account. ) Ms. XXXX then affirms both her and my assessment of partial payments ; " If the due date has not been reached, and a partial payment is received, these funds will be applied as a principle curtailment. '' As per the Customer Account Activity Statement, no partial payments received before the due date were applied to the principle, but instead applied to the suspense account, thereby not reducing the principle and reducing the accrued interest, but keeping the principle at the previous level, not reducing the accrued interest level, and giving US Bank the opportunity to make interest off funds in the suspense account intended for principle.

Payment increase : Ms. XXXX writes ; " Your payment increased form {$480.00} to {$540.00} effective XX/XX/XXXX ''. This statement is in agreement with my argument that payments were {$480.00} as I paid {$480.00}. Therefore, US Bank 's assertment that payments in XX/XX/XXXX were above {$480.00} are false. US Bank is breach of the Settlement Agreement of XXXX XX/XX/XXXX. 

Due to these facts I request that the account be reassessed for the year XXXX to date following the writings of Ms. 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 explanation