Consumer complaint received 2019-12-10
Company: Flagstar Bank, N.A.
State: AZ
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
On XX/XX/2019 we made a mortgage payment to Flagstar Bank in the amount of XXXX. {$1400.00} for regular monthly payment and an additional {$100.00} toward the principal. 

On XX/XX/2019 a payment was made to Flagstar in the amount of {$1400.00}. This payment was made by mistake/accident. When we checked the Flagstar Web site on XX/XX/2019 to confirm if a payment was made or scheduled, it indicated no payment was scheduled or pending. We made another payment which was credited as an early XX/XX/2019 payment. 

I called Flagstar on XX/XX/2019 and requested the payment that was made in error to be returned to our account rather than credit for the next month. I was told to send the request by email, providing specific documentation about my bank account and wire transfer instructions. 

I was informed that it would take 5 business days from the time they received the information. 

I emailed all the information they requested on XX/XX/2019. 

On XX/XX/2019, I called Flagstar to check the status of the wire transfer. I learned it had not been completed due to an incorrect account number. I provided them with the correct account number and was told that it would take 3 business days for the funds to transfer. Based on this information, the wire transfer should have been received by our credit union by XX/XX/2019. 

On XX/XX/2019, I called to check on the status of the wire transfer. I was informed the wire transfer was completed today, XX/XX/2019. At this time they provided a 'reference number ' about the wire and indicated I should have the funds in the next day or two. 

I waited a few more days and after still not receiving the funds, called Flagstar again. I explained I did not see the funds in my credit union account, but they assured me the funds were transferred and to just call my bank. I called my credit union, and they had not received any wire transfers in the amount specified or any wires assigned to my account. I called Flagstar back. I was assured again it was transferred on XX/XX/2019 and to check my account again the next day. The next day there were still no funds. 

I called Flagstar back again and asked to speak to a manager. I was told a manager would call me back. No manager called me back. I called back again and asked to speak to a manager, explaining that none had called me back. Prior to being put on hold, I was told again, that the wire transfer was completed. After 1 full hour of being on hold, I was transferred to a Team Lead. He reviewed the issue and after another hour of being put on/off hold, emailed me a screen shot that showed how they attempted to make the transfer on XX/XX/2019. 

I asked how he could tell that this was a successful wire transfer? He said he could not, but that he was informed by accounting that it was successful. I even asked if he could me what the Status of the wire on the screenshot meant, but he said he could not, but he was 'certain ' the wire was sent successfully. 

Upon reviewing the emailed screen shot with my credit union wire transfer team, it was determined that there was a section that was missing information. The one key component that was missing in this wire transfer, was the " Beneficiary Bank ''. On the wire transfer screen shot, the money was sent to the proper receiving party with the correct ID/Type. The next step was to add the Beneficiary Bank and routing number, but there was no Beneficiary Bank listed. This appears to be the step they missed. I emailed the wire transfer instructions that included the Beneficiary Bank along with the routing number and account, which should have been put in the ID/Type, so that the credit union knew where to send the wire transfer.

My wife contacted our credit union wire transfer department. We learned they do not warehouse payments. If there is no Beneficiary Bank located on the wire transfer, they return the payment the same day to the bank that originally sent the money. 

We forwarded this information to Flagstar requesting that the funds now simply be credited as the XX/XX/2019 payment, and have received no response from anyone at Flagstar and the funds have not been credited, nor has the wire transfer been completed. 

This blatant disregard needs to be addressed as soon as possible as it is our belief that they are waiting to address this after XX/XX/2019 at which time they will add a {$60.00} late fee to our account. 

Flagstar has made a mistake and to date, has not contacted us and has not responded to any of our email requests for either a telephone call or an email that they remedied this or corrected their mistake. We have provided all of the evidence we can that shows the payment was made twice, evidence that the wire transfer they attempted was not completed due to insufficient information as written in the wire transfer instructions. 

Note that Flagstar has provided no evidence or documentation that the wire transfer was ever successfully completed to our credit union. As of XX/XX/2019, we have yet to be contacted by Flagstar about this matter.

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