Consumer complaint received 2020-11-03
Company: NAVY FEDERAL CREDIT UNION
State: FL
Product: Mortgage
Sub-product: VA mortgage
Issue: Trouble during payment process

Complaint:
We worked with our insurance agent in XXXX to solicit insurance quotes from various venders to ensure that we had the best coverage for the price. We emailed our insurance agent on XX/XX/20 that we decided not to change insurance companies this year and asked him to move forward with processing the payments with our mortgage company. Our policies for homeowners and flood insurance were due for renewal XX/XX/20. We received our Flood Policy and heard nothing else relative to any issues with payment from our insurance agent nor our mortgage company until XX/XX/20. On XX/XX/20 we received a letter from NFCU dated XX/XX/20. This letter was notice that our flood insurance expired because we failed to obtain new coverage. We called the NFCU on XX/XX/20. We were told that our insurance agent failed to send the information so that the mortgage company could pay the flood insurance. We were told that they requested it 3 times. 

We immediately contacted our agent and asked them to send the information regarding the flood insurance to NFCU so this could be paid the same day. We received a phone call back from our insurance agent notifying us that a request for payment was sent to NFCU but the flood insurance company never received payment. We were also notified that since the policy had lapsed 31 days prior, we would have to get a new policy and wait the 30 days required by the XXXX XXXX XXXX XXXX XXXX XXXX XXXX. After several calls and back and forth to the insurance company, NFCU and our insurance agent, we were told that they were researching this issue and would get back to us and that NFCU did send out the payment early in XXXX. 

We received a call back later that afternoon that our flood insurance company was sending out a new bill with coverage data and that our flood insurance would be effective in 10 days. This was due to the error in the billing process and thankfully we didn't have to wait the full 30 days, however Hurricane Sally was building in the Gulf of Mexico and we would not have coverage through the hurricane. 

We called on XX/XX/20 and XX/XX/20 to ensure that our payment had been successfully received by our insurance company. It was and our policy was effective XX/XX/20. After all of this, we receive a letter from NFCU on XX/XX/20 dated XX/XX/20 stating that our mortgage escrow would be charged {$330.00} unless we can provide proof of coverage from XX/XX/20 until XX/XX/20. So once again we called NFCU and spoke to XXXX regarding the complete mishandled payment from NFCU and asked if NFCU could look into this issue. We were told that this issue was being researched and they would get back in touch with us regarding this issue. We never heard back from them and on XX/XX/20, we received another letter dated XX/XX/20. This letter was to inform us that our escrow was charged {$330.00} for forced placement insurance due to failure to provide proof of coverage. It is as if the investigation into this issue was dropped. 

Our problem is that there was a check printed for our flood insurance on XX/XX/20, there is no proof they sent it since they send out these checks via regular USPS mail with no tracking. I have purposely included the timeline of the letters that I receive from them to show that they are not timely in their mailing apparently. After denying that the check was printed and deducted from our mortgage escrow account ( see attachment " XXXX ) and stating that our insurance failed to send them appropriate information to submit a payment, we learn that the problem was with NFCU. They then refunded our escrow {$870.00} XXXX price of the original flood insurance policy and submitted a new check for {$750.00} for the revised flood insurance ( attachment XXXX ). Now they have charged us for this error and apparently dropped their internal investigation.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with monetary relief