Consumer complaint received 2022-02-12
Company: BSI Financial Holdings, Inc.
State: AZ
Product: Debt collection
Sub-product: Other debt
Issue: Attempts to collect debt not owed
Sub-issue: Debt was paid

Complaint:
BSI Financial Services has repeatedly claimed that our payments on this account ( XXXX ) are overdue. We have paid this account IN FULL. We have repeatedly attempted to resolve this matter by telephone and have been regrettably unable to reach anyone who actually has a clue about what is going on with this account. We originally took out this loan in XX/XX/XXXX through XXXX XXXX for the purchase of solar energy equipment that was to be installed on our home. This was accomplished and we began paying our monthly payments of {$210.00}. This payment consisted of Principal and Interest of {$190.00}, and Private Mortgage Insurance premiums of {$20.00}. It should be noted that we were not required to have any type of Escrow account because the lender on our first mortgage was already maintaining an escrow account for payment of property taxes and insurance. The original loan documents clearly state that no escrow account was necessary and that there was not a prepayment penalty should we elect to pay off the loan early. 
Over the years we have consistently paid extra amounts to reduce our principal balance. In XXXX, BSI Financial bought the loan. We made a number of extra principal payments in amounts up to {$3000.00}. So on the XX/XX/XXXX statement from BSI Financial, our principal balance was listed as {$11.00}. Our payment amount for XX/XX/XXXX was shown as $ XXXX.On the XX/XX/XXXX billing statement from BSI Financial , the outstanding principal balance was again listed as {$11.00}. Despite this, the billing statement showed a payment due of {$210.00}, the normal monthly amount. This included {$190.00} for principal, {$0.00} for interest, and {$20.00} for the PMI premium. We are at a complete loss as to how BSI Financial came up with a principal payment of {$190.00} when the statement clearly and unequivocally shows a remaining principal balance of $ XXXXThis baffling and disturbing series of events was repeated with the XX/XX/XXXX through current billing statements. The main difference was that these subsequent statements reflected a steadily increasing Overdue Payments balance consisting of the unwarranted payment demands from XX/XX/XXXX forward. At all times, the outstanding principal balance was listed as {$11.00}. In an attempt to reduce this outstanding principal balance of {$11.00}, payments of {$20.00} were remitted on XX/XX/XXXX and again on XX/XX/XXXX. BSI Financials records confirm that they did indeed receive both payments. However, instead of applying either of the payments to the remaining principal balance of {$11.00}, the payments were logged as unapplied partial payments and the amount of {$40.00} is sitting idle in our account. Instead of sitting idle, they should have applied to the outstanding principal balance of {$11.00}. This appears to be due to utter incompetence or as a means of preventing the outstanding principal balance from reaching {$0.00} as it should be. In summary, our account has been paid if full. A Qualified Written Request was sent to BSI Financial on XX/XX/XXXX. BSI Financial acknowledged receipt of the Request by letter dated XX/XX/XXXX. BSI Financial has since reported derogatory information to consumer credit reporting agencies. BSI Financial has refused to retract and correct the information to reflect our true payment history of entirely satisfactory and timely payments. The XXXX Tax Statement shows a balance of {$92.00} on page 2 in the Pre-Payment Disclosure Statement with page 3 showing the payment history. BSI Financial is acting in bad faith and has yet to respond the Qualified Written Request. Furthermore, BSI Financial has now sent us Notice of Default and Intention to Foreclose. BSI Financial is trying to take our home over a loan that was paid in full. This seems to be in retribution and bad faith due to the company buying the loan from another lender in early XXXX for us to then quickly turn around and pay it in full, depriving them of any gains from their loan purchase.

Company response to consumer: Closed with explanation