Consumer complaint received 2022-10-13
Company: JPMORGAN CHASE & CO.
State: LA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
After XXXX XXXX in XXXX, the insurance rates in Louisiana were affected. In my case, my insurance provider left the local market and forced us into " an insurer of last resort. '' This raised the rates that would be withdrawn from my escrow account. In XX/XX/XXXX I received a letter from my lender, Chase, that informed me of three payment options as a result of the escrow shortage. The letter was vaguely written. Was the payment a pure escrow payment or did it include the monthly mortgage payment as well? Since it presented three options, which included just making the regular monthly payment, I interpreted the letter to include both the monthly payment plus escrow. However, not wanting to be late or incorrect, I went to a local Chase branch for consultation. The banker advised me that the payment was for both the monthly payment and escrow shortage. I paid the advised amount. 


The following month, in XXXX, I made my payment the normal way I do, which is through my XXXX XXXX  Bill Pay service. A few days later, I received a letter from Chase notifying me that they did not receive my XXXX payment. I called Chase to confirm the validity of this letter and to inquire about the XXXX payment. They notified me that the payment was received at the bank, but that the bank applied the whole amount strictly to escrow. I explained to them that I met with their bank representatives and confirmed the process and payment amount and that I paid as instructed by both the letter and the representative. They insisted that it was still my fault. 

I asked how do we resolve this, because I have proof that I paid it ( cancelled check from the bank ) and they admitted they can see the payment. They insisted that the account was " locked '' or " red '' and that no corrections could be made until the account " showed green. '' How I asked? They said I had to provide an immediate payment via their " check by phone. '' I complied. 


After sending the check, I immediately checked my credit report. Chase, in less than a 30 day window, reported my payment late to the credit bureaus. My credit score dropped from an XXXX to XXXX over this single and only negative comment that isn't even my fault. I made the payment as instructed at their branch. I wanted this corrected. 


I have spoken to Chase representatives to get this corrected. They have taken my complaint, can see the payment in question, have corrected the misapplication, waived the late fee and admitted their error. A work order was created to correct the credit report. After three weeks of waiting for a copy of this correction in the mail I did not receive it. Neither have the credit bureaus. 


I have contacted Chase again and I have now been informed that they have decided to not issue the credit report amendment as indicated in previous calls. They are now telling me that I have not provided them with enough proof that I made the payment. They have stated that they will contact the local bank to see if they can confirm my version of events. My credit history now hangs in the balance of the memory of a bank employee who already mistakenly applied the funds entirely to escrow. How is this right? How is this not fraud? 


This is not the first time I have had issues with Chase as it relates to this same mortgage account. A few years ago, Chase, without warning, sent me a FedEx envelope with a {$1500.00} refund check and a mortgage rate adjustment. The included letter stated that this was because of my XXXX XXXX military service. The problem is I am not XXXX XXXX military. I called them to explain this to them and they insisted I was wrong. I demanded that they cancel the check, return the allocated funds to the correct account, and return my interest rate to the correct amount. This refund was an obvious mistake, yet they wouldn't believe me. I had to contact the XXXX. of XXXX Affairs to get the paperwork necessary to prove that I wasn't in the military. During this process, Chase had instructed me to just keep the money and keep the rate adjustment " for all of the trouble. '' I refused. I explained that they were asking me to commit a federal crime and moral crime. XXXX XXXX is serious and I will not stand for it. To correct the account, they had to put my mortgage in suspension and was told not to make payments. I knew better than to trust them on this, so I kept sending my mortgage payments as normal. After three months I got a call from Chase stating that they had resolved everything. Then two weeks later I received a letter saying that I was being turned over to collections for not paying my mortgage for three months. Chase cashed all of those checks but said I didn't pay. I had to get copies of those three checks sent from my bank to Chase to prove it was paid. Chase put those funds in a phantom account linked to my mortgage but didn't apply them resulting in an erroneous delinquency.

How can this happen to the same mortgage account? How often does this happen to other Chase mortgage accounts? I can not be the only one so negatively impacted by Chase 's sloppy record keeping and processes. How many late fees has Chase collected over erroneous delinquencies? How many credit histories has Chase corrupted through their erroneous reporting? How many people have been encourage to commit a federal crime?

Company response to consumer: Closed with explanation