Consumer complaint received 2016-06-23
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: CA
Product: Mortgage
Sub-product: Conventional adjustable mortgage (ARM)
Issue: Loan servicing, payments, escrow account

Complaint:
I have a mortgage with Bank of America who cancelled my auto pay provision without any notice to me. This resulted in my being 60 days late without my knowledge. Once I was informed I immediately made payment to bring my account current. The following month in XXXX it was my understanding that my automatic payment process would be resumed, something I confirmed with the B of A representative over the phone as I was making arrangements to correct the balance on my account. I made my payment in XXXX to bring my account current as I negotiated with the representative over the phone and assumed that this mishap had been resolved. In XXXX I had pressing issues and I did not follow my balance with my account from which the payment should have been withdrawn. In XXXX I discovered that the payment had not been withdrawn and I immediately went to the bank and made a payment on XXXX XXXX that included late fee 's. The check cleared my bank XXXX XXXX, 2016. At that time, I was receiving calls from Bank of America demanding payment and reciprocating in the mail their pre-foreclosure packets. I called the B of A and was first informed that they had no record of my payment and that I had to make a payment with certified funds that day. I contacted a friend who is a Mortgage broker and we call Bank of America together. After several questions from my friend, Bank of America admitted that they had received my funds but returned them and that I had to make another payment with certified funds. This was XXXX/XXXX/2016. The spokesman told us that funds had been returned. On XXXX/XXXX/2016 I received the check with a letter from BofA that my funds were being returned. The check was dated XXXX/XXXX/2016, the envelope that the check was mailed in, however was dated XXXX/XXXX/2016. Bank of America waited another seven days to mail the check. Bank of America had accepted my funds, cashed the check, verified that they had indeed received the funds, then returned the funds and reported me late on my credit report and accelerated my loan into pre-foreclosure status. I am planning on taking B of A 's check to the bank and substituting it for a B of A certified check, and redepositing the funds back to ensure my loan does not go into foreclosure however I believe that Bank of America, by accepting my check, cashing my check, verifying that they had received the cash, and then returning the funds in favor of certified funds after receiving payment should be illegal. I further believe that while holding my funds, accelerating my account into their pre-foreclosure process is unconscionable. They held my funds and then charged me a penalty for being late, and accelerated my loan to pre-foreclosure status, even though they had verified that my funds had cleared and were in deed deposited into their account. Then took an additional week and a half to return the funds and only did so when I presented them with proof that they indeed were holding my funds.

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