Consumer complaint received 2022-09-26
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: KS
Product: Mortgage
Sub-product: Home equity loan or line of credit (HELOC)
Issue: Struggling to pay mortgage

Complaint:
I believe Bank of America violated the loan postponement ( forbearance ) regulations of the Covid program.

The reasons are : Due to loss of income due to the Covid pandemic, I applied to Bank of America for a loan postponement ( forbearance ) under the Covid program. 
I received a letter dated XX/XX/XXXX, stating that I had been approved for a loan postponement ( forbearance ) under the Covid program. 
The letter from Bank of America stated : This letter confirms that you've entered into a payment postponement ( Forbearance Plan ) for this home loan, which means there is no requirement to make any billed and unpaid contractual payments at this time through XX/XX/XXXX. Except as stated in this letter, the terms of this home loan remain unchanged. 
I still had a loss of income due to the Covid pandemic. I applied to Bank of America for another loan postponement ( forbearance ) under the Covid program. 
I received a letter from Bank of America which was dated XX/XX/XXXX. 
The second letter from Bank of America stated : Your Payment Status Your payments are postponed through XX/XX/XXXX. During this time, your statements may show past due balances, even though you aren't required to make payments during the postponement period. Were here to help if you have questions or want to discuss your payment options. 
About seven years prior to this date, a lady driving a XXXX XXXX pickup ran a stop light. I was genuinely grateful for witnesses who gave signed sworn statements that she ran the stop light and was totally at fault. 
I will be glad to furnish all the pertinent details of the accident upon request. 
The result of the accident was a $ XXXX car payment. 
After I made the $ XXXX car payment XX/XX/XXXX I sent a copy of the receipt to Bank of America XXXX 

I explained to Bank of America that I had about four more car payments, referencing the above copy of the receipt. 
When I paid the car off that would drop my payments by {$940.00} a month. 
I also explained to Bank of America that I had another bill which was {$100.00} a month that would be paid off before the car was paid off. 
That would drop my payments by {$1000.00} a month. 
I remember that at the time I was still eligible for several more loan postponements ( forbearance ) under the Covid program. 
Here is a copy of the receipt for the XX/XX/XXXX payment. 

XXXX, XXXX XXXX Kansas is still shut down for a lot of activities because of the Covid pandemic. A number of activities have started up. However, the activity related to my extra income has not started back up. 
At the time, around XX/XX/XXXX, I plan on using another one of the three months loan postponements ( forbearance ) under the Covid program. 
With that loan postponement, my car would not only be paid off, which would drop my payments by {$940.00} a month, but I also would have an additional bill of {$100.00} a month paid off. 
That would eliminate total payments of {$1100.00} a month. ( {$940.00} plus 2 {$100.00} a month payments. ) To me, that meant that even without the extra income I had before the Covid pandemic hit, I would have the extra income to start catching up on my home loan.

Due to the Kansas HAF program, my home loan is now completely up-to-date. 

I was in the Covid loan forbearance program. I had letters from Bank of America stating This letter confirms that you've entered into a payment postponement ( Forbearance Plan ) for this home loan, which means there is no requirement to make any billed and unpaid contractual payments at this time through XX/XX/XXXX. 
The second letter from Bank of America stated : Your Payment Status Your payments are postponed through XX/XX/XXXX. During this time, your statements may show past due balances, even though you aren't required to make payments during the postponement period. Were here to help if you have questions or want to discuss your payment options. 
I asked a Bank of America representative that I was talking with on the phone how long have I been with Bank of America. 
I learned that I had been with Bank of America for about 40 years. 
With a long-term relationship with Bank of America and no payments due. There was absolutely nothing due on my home loan. Reference the letters I have from Bank of America. 
I felt I was on the correct path to getting my finances straightened out. 
I believed that even if XXXX XXXX XXXX Kansas kept the area my extra income was in shut down, my finances were straightening out, getting back on solid ground. 
In fact, as of this date, my home loan is current and completely up-to-date. 
It is my understanding that the loan postponement ( forbearance ) regulations of the Covid program were designed to help people keep their homes. 
I believe Bank of America fragrantly broke the law when Bank of America notified me in writing that absolutely nothing was due, no payments or anything was due whatsoever on my home loan. 
Then Bank of America sent my home loan to a debt collector who threatened me with foreclosure. 
I absolutely believe that is a gross violation of the loan postponement ( forbearance ) regulations of the Covid program by Bank of America. 
Thank you 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 explanation