Consumer complaint received 2018-02-24
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: CAPITAL ONE FINANCIAL CORPORATION (CA)

The purpose of this letter is to request assistance against the practice of Capital One and XXXX XXXX XXXX. 

We request that Capital One and/or XXXX XXXX XXXX reimburse the payment of {$4200.00} which XXXX XXXX had to do in order to stop the following threats : 1. Continuing interest charges against an account that was meant to be paid off in full in XX/XX/XXXX. Account which they failed to advise title company that the payment was short leaving an open balance uncovered by the given payoff amount. 
2. The threat that they would foreclose on the property 3. For XXXX and/or Capital One to continue to damage XXXX XXXX credit record, which already has been damaged after the refinancing in XX/XX/XXXX due to the lack of response from Capital One and 4. The threat that XXXX would also report against XXXX credit if no payment was received prior to XX/XX/XXXX. 

In XX/XX/XXXX we refinance the property located at XXXX XXXX XXXX XXXX XXXX CA XXXX. Through the refinancing process the property changed titled from XXXX XXXX to XXXX XXXX as ordered in a divorce decree. 

Because we received a payoff confirmation letter from Capital One which indicated that additional documentation would follow, when envelops arrived, the importance of the content was accidently overlooked. It was until XX/XX/XXXX when we realized there was a problem with the payoff and we immediately called Capital One. They never responded to our inquiries. What they did was to continuously send their patterned letters. 

During the refinancing, the XX/XX/XXXX regular payment was stopped, the Title Company notified Capital One of this and requested a 2nd payoff specifically requesting the XX/XX/XXXX charges, Capital One provided a second payoff amount including interests through XX/XX/XXXX. 

Due to the lack of response by the middle of XXXX, we requested assistance from the Title Company, and they were able to obtain a demand from Capital One which is their letter dated XX/XX/XXXX. 

XXXX XXXX XXXX has indicated that they can not assist with this issue as they submitted the payment to Capital One, and it is a general practice in the industry that if they payoff is incorrect, Capital One should not have accepted the payment and would had to contact the Title Company. Being that they never heard from Capital One, this is indicative to them that their payment satisfied the debt. 

In XX/XX/XXXX as soon as we realize the problem existed, we immediately called Capital One, and placed multiple calls. We were told that the issue on hand would be elevated however, we never received a call back from them to help resolve the pending issue of an outstanding balance. 

We certainly were expecting to be able to have a conversation with someone with authority to resolve the alleged outstanding balance issue ; however, not one of the persons whom answer their phone had authority to reach a resolution or provide an explanation, forcing us to continue to wait. 

We kept on calling, finally on XX/XX/XXXX we wrote and faxed a very detail letter requesting someone with authority to call us to clarify the issue. 

On XX/XX/XXXX when we called Capital One to verify that they had received the faxed letter we were told that the account was outside the control of Capital One as the account was reassigned to XXXX XXXX XXXX and there was nothing they could do. 

On XX/XX/XXXX I began calling XXXX XXXX XXXX and we were told there was nothing that could be done as the file had to be boarded and we had to wait for a couple of weeks. 

Being that we were told that there was nothing that could be done, we had no option but to wait. Again on XX/XX/XXXX we began calling again. We placed multiple calls via their XXXX XXXX XXXX XXXX ; then, we were given a representative , XXXX XXXX and also left him multiple messages at the given direct number XXXX XXXX XXXX. Subsequently we were told the file was reassigned from XXXX XXXX to a XXXX on XX/XX/XXXX. 

On XX/XX/XXXX I was able to speak to someone who suggested that perhaps if we extended an offer to compromise by sending a letter along with a check that would prompt to call back to us. Therefore, by XX/XX/XXXX we considered what transpired and sent of offer letter and mailed a check offering to compromise. 

XX/XX/XXXX was the first time I was able to speak to XXXX, who indicated that he needed to submit the file to the investor ( The investor being Capital One, who told us on XX/XX/18 the account was out of their control ) to review our offer. XXXX indicated he did not have copies of any of the letters we had sent via their fax number XXXX XXXX XXXX. XXXX also indicated that the file would be sent to a unit to verify that there was no wrong doing in their part and this review would take approximately 45 days to completed. 

On XX/XX/XXXX I spoke to supervisor XXXX, she stated that they had been instructed by the investor that they were not willing to negotiate and expected the full pay off amount as the house had equity or they would proceed to foreclose on the property. 

At this point and given their unwillingness to consider to negotiate or consider the time frame it took for us to get to talk to someone or the fact that Capital One did not follow the industry standard to reach out to the title company given that the payoff was short creating a left over balance and the additional interest/charges the account had incurred increasing the balance, XXXX had to take out a loan through the use of her car in order to pay off the account. 

It is also our belief that Capital One did a mistake when they received notice that the XX/XX/XXXX payment was stopped, they had ample time to call the Title Company and advise them that the payoff did not cover their balance instead of accepting the funds. Capital One knew this information when the second pay off was requested. 

It is our belief that based on Capital One letter dated XX/XX/XXXX they incorrectly allocated the funds sent by the Title Company creating a left-over balance on the account, by allocating fees for XX/XX/XXXX, XX/XX/XXXX and XX/XX/XXXX instead of rejecting the payment and reaching out to the title company. 


Considering that we received a payoff confirmation letter from Capital One, that we have attempted to reach out to Capital One by phone since XX/XX/XXXX, when they told us they would elevate the issue and never responded, then also sent them a fax on XX/XX/XXXX advising them that the loan was paid off, they did not follow up industry procedures by not accepting the payoff and contacting the title company, they never acknowledged the requests for contact, they reassigned the loan without regard to all the inquiries that we were making trying to speak to them and reach out a resolution by not acknowledging our numerous phone calls or written requests for contact to resolve the alleged due balance grew allowing them a larger profit, all these evidence of their predatory Lending Practice. Based on these we request that they reimburse the payment of {$4200.00}, to XXXX XXXX and clear XXXX XXXX credit through the 3 credit bureau. 


Thank you for review of these facts and look forward to a resolution. 


XXXX XXXX on behalf of XXXX XXXX and XXXX XXXX. 
XXXX XXXX XXXX