Consumer complaint received 2016-07-13
Company: U.S. BANCORP
State: MD
Product: Mortgage
Sub-product: FHA mortgage
Issue: Loan servicing, payments, escrow account

Complaint:
XXXX XXXX, 2016, I submitted my mortgage payment online. Upon submitting the payment, I received notification that the payment was received. Prior to leaving on vacation on XXXX XXXX, 2016, I called US Bank automated phone service to confirm the payment was in fact received. On XXXX XXXX, while on vacation, I notice that the payment had not been withdrawn from my bank account. Therefore, I called US Bank to confirm when the payment would be withdrawn. During the call, I was informed that my payment was return by my bank due to the account number not being provided. I immediately reviewed the online payment history and it showed that payment was received, as well as my bank account and routing number. I called US Bank again informing them that the online payment shows that account number was provided. During my second call, I was told that XXXX returned my payment. I called XXXX to obtain the reason for my payment being returned. XXXX stated that my payment was never submitted to them and therefore, they did not return the payment. I called US Bank again, and submitted a formal compliant, as I could not obtain a consistent reason as to why my payment was shown in my online payment history as received on XXXX XXXX, 2016 at XXXX and the automated phone system stated payment was received on XXXX XXXX, 2016, but customer service is stating that payment has not been received. As part of the complaint, I asked US Bank to waiver all XX/XX/XXXX late fees, as the payment could have been resubmitted in a timely manner has their online banking system or automated phone system indicated that the payment was Not received. Upon submitting the complaint, I also mailed a check for the mortgage amount. Per discussion with US Bank on XXXX XXXX, I was informed that although a complaint had been submitted and the Bank was researching the issue the payment was still considered late. I informed US Bank that a additional payment was made via normal mail. The Bank stated that it can take 7-10 days for the payment to be processed upon receipt. In addition, while I was waiting to receive notification from US Bank regarding the outcome of their investigation, US Bank proceeded to report the late payment on my credit report. US Bank current practices provide customers with false/incorrect information causing the customer to incur penalties and late fees. US Bank online service and automated phone service reports payments received, even if there is an error with the submission of the payment. Had I been aware during the time of payment or when confirming the payment was received via the automated phone system, I could have resubmitted the payment in a timely manner. In addition, the communication method ( normal mail ) used by US Banks, decreases the amount of time a customer has to resolve an issues. The Bank indicated that they were made aware of the error on XXXX XXXX, 2016 and a letter was send via normal mail on that day. Additionally, US Bank noted that they attempted to call me on XXXX XXXX ( one time ) to inform me of the issue. However, I have not recorded of this call. I have called US Bank over 6 times to resolved the issues. Additionally, on XXXX XXXX 2016 while attempting to make my XXXX mortgage payment, I was informed that any payment made would go towards the XX/XX/XXXX balance. Therefore, the XX/XX/XXXX payment would then be considered late. Per the company policies, customers will incur a fee for all return checks. Therefore, I am unable to cancel the XX/XX/XXXX check that was previously via normal mail and pay both XX/XX/XXXX and XX/XX/XXXX over the phone, as I will incur a fee for a return check. I would like for US Bank to remove the 30 day late notice on my credit report, as I have made several attempts to resolve the matter and identify the error. Each time I call US Bank, I receive a different reason for why the payment is showing online as received and the exact error.

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