Consumer complaint received 2022-07-13
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: AZ
Product: Mortgage
Sub-product: Home equity loan or line of credit (HELOC)
Issue: Trouble during payment process

Complaint:
To whom it may concern, I had a HELOC with Bank of America ( BofA ) and converted my variable interest HELOC to a fixed rate loan on XX/XX/XXXX. Although I have paid all accrued interest on the HELOC and the principal has been transitioned to the fixed loan I keep getting statements stating that my payment is past due. I have spoken to over a dozen representatives since XXXX to try and resolve the situation and have to start from the beginning every time. Twice I was told that a research " ticket '' would be opened and somebody would get back to me but nobody ever has. The representatives keep looking at the XX/XX/XXXX payment that was due for the XXXX cycle and keep referring to the statement vs. looking at the facts and what has transpired. 

My billing cycle is from XX/XX/XXXX to XX/XX/XXXX with a payment due of {$640.00} on XX/XX/XXXX for the XXXX cycle, consisting {$360.00} of interest and {$270.00} of principal. I did not pay the XX/XX/XXXX bill on the HELOC but did pay the XX/XX/XXXX on the fixed loan. I have not missed a monthly payment. Total principal balance as of XX/XX/XXXX reported on the HELOC statement was {$140000.00} which was moved to a fixed rate loan on XX/XX/XXXX so there is no longer any principal balance on the HELOC. Online it reads " Equity Line of Credit Principal Advance '' on XX/XX/XXXX. 

I realize that the accrued interest of {$360.00} is still due but the {$270.00} of principal for the XX/XX/XXXX bill was moved with the XXXX on XX/XX/XXXX. There is also accrued interest of {$23.00} from XX/XX/XXXX to XX/XX/XXXX when the principal was moved to the fix rate. I paid the {$23.00} on XX/XX/XXXX after discussing the situation with a BofA representative. I then paid the {$360.00} interest that was due for the XX/XX/XXXX - XX/XX/XXXX billing cycle on XX/XX/XXXX after another lengthy discussion with a BofA representative. Both payments show as paid toward interest when viewed online. 

My XXXX statement shows {$0.00} Finance charge due, {$0.00} Principle payment due, new balance is {$0.00} but minimum payment due still shows {$640.00}. I believe this is because nobody has turned off or corrected the billing when it was converted to a fixed loan. If I pay the {$640.00} there is no interest or principal to apply it to so I'm unsure how BofA plans on applying the payment. 

I've had over a dozen calls since XXXX to try and resolve this situation and it shows as a past due delinquent account on my credit report. I manage operations for another large XXXX Bank and have converted loans thousands of times and understand the process. Every time I speak to somebody at BofA I have to explain the entire situation again. The last person I spoke to was XXXX XXXX on XX/XX/XXXX and she stated she would open another ticket for research and get back to me. 

BofA is hung up on the statement showing that the {$640.00} is due when all accrued interest has been paid and the principal has been moved and has been accruing interest on the fixed rate since XX/XX/XXXX. Nobody will take a moment to look at the facts or do the math but instead they point to a statement showing an amount due because the billing was not turned off or corrected.

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