Consumer complaint received 2015-10-13
Company: JPMORGAN CHASE & CO.
State: CA
Product: Mortgage
Sub-product: Other mortgage
Issue: Loan servicing, payments, escrow account

Complaint:
My husband and I applied for a loan modification XX/XX/XXXX. The modification was unreasonably delayed without cause. It was not until I involved the CFPB that the modification finally went through XX/XX/XXXX. XX/XX/XXXX, I received a letter from my lender, Chase Bank regarding my modified home mortage loan # XXXX informing me that following my modification issued on XX/XX/XXXX, they had OVERCHARGED interest at the inception of the loan in the amount of {$1500.00}. The letter went on to explain that Chase unilaterally decided to apply this overpayment to the principal and that they will report this amount as reimbursed interest ( i.e. as INCOME XXXX in XXXX XXXX of my XX/XX/XXXX IRS Form XXXX. I have written them multiple times to object to this. I would like to have the money refunded so that I have money available to pay the TAXES NOW DUE on this " reimbursement ''. XX/XX/XXXX, my total income was {$49.00} and I owed ZERO dollars in Federal Income tax. Their failure to properly calculate the interest due on my modification will result in additional tax to me XX/XX/XXXX in the amount of approximately {$540.00}. XX/XX/XXXX, my income tax rate will be at 35 %. But I do not have the MONEY to pay the increased taxes that will be due on this alleged " income '' because they have unilaterally decided not to refund the overpayment and instead apply it to the principal balance. 
So XX/XX/XXXX, they overcharged me interest in the amount of {$1500.00}. I could have really USED that extra cash XX/XX/XXXX when my income was so low. NOW, three years later they " discover '' the error and instead of refunding the overpayment to me, they use the money to benefit THEIR portfolio. That cash has been available for THEIR use for 3 years already, and now they get it to do what THEY want to do with it. I need this money to PAY THE TAXES NOW DUE on it. Taxes that would NEVER have been due had they properly calculate my loan interest XX/XX/XXXX when the modification went through. I did not NEED the mortgage interest deduction XX/XX/XXXX, so there was no corresponding benefit of a deduction on my XX/XX/XXXX return. 
I have TWICE requested in writing that Chase refund the overpaid interest so that I have dollars available to pay the taxes due on the money. These letters resulted in over a dozen phone calls and " status '' letters between Chase and I. I spoke with several representatives at Chase and have those names and phone numbers available if needed, along with notes from the phone calls. ( Note the status letters provided ZERO information and just said they were still working on my request ). This money was NEVER OWED to Chase and is NOT OWED NOW. It was an OVERCHARGE and the money should have been refunded. They demanded payment of money that was not due and have refused to refund it despite my multiple requests. I have attached copies of the substantive correspondence between Chase Bank and I, in which Chase refused to refund the overpayment.

Company response to consumer: Closed with monetary relief