Consumer complaint received 2015-05-06
Product: Mortgage — Home equity loan or line of credit
Issue: Loan servicing, payments, escrow account — 
Company: BMO Bank, N.A. (IL)

This is a follow-up complaint to my previous submission, Case number XXXX. The previous submission involved a {$5700.00} " Ghost Loan Fragment '' that kept appearing on the larger of my XXXX HELOC loans with BMO Harris Bank. This XXXX problem was resolved by human intervention of the local Branch Manager, who effectively " zeroed-out '' the loan to show a true {$0.00} principal balance. I received XXXX letters via regular mail from BMO Harris regarding this issue. NOW, however, I am faced with ANOTHER Principal & Interest pay-down issue with my smaller HELOC that still carries a balance! Just yesterday ( Tues., XXXX XXXX, 2015 ), I went to my local bank branch and wrote out XXXX separate checks : a principal payment check of {$850.00}, and an interest-payment check of {$25.00}. After submitting these to the bank teller, I asked for a printed ACCOUNT INQUIRY. To my dismay, the CURRENT PRINCIPAL balance showed a reduction from the previous balance of {$24000.00}, to a new principal balance of {$23000.00}! And the CURRENT INTEREST was still held at {$25.00}! Therefore, a basic accounting error was made by BMO Harris! Instead of applying the directed {$25.00} to the interest, they erroneously applied ALL of the payment to the principal! 
Thoroughly disgusted, I immediately asked the teller to check, who then referred me to the Chief Teller. " Everything was coded correctly [ regarding P & I payments ], on our Front End, '' the Chief Teller told me. " This must have happened in THE BACK ROOM! So, we know nothing about this! '' THIS IS A MAJOR PROBLEM FOR THIS BANK! NO ONE SEEMS TO KNOW WHAT HAPPENS REGARDING YOUR P & I LOAN PAYMENTS! EVEN WORSE, THEY TELL ME THAT THERE IS NO LOAN DEPARTMENT, PER SE! THEREFORE, THERE IS NO ONE TO WHOM THE CONSUMER CAN COMPLAIN, WHO KNOWS THE ANSWERS! 
I then asked to see the Bank Manager ( the XXXX who had zeroed-out my XXXX HELOC balance ). I showed her the check intended for interest payment, and she walked back to the Teller area. She ( XXXX XXXX, Bank Manager ) soonreturned, bringing with her XXXX XXXX ( Market Manager ). XXXX XXXX complained that XXXX XXXX had to " break our Protocol '' in order to correct and remove the previous {$5700.00} " Ghost Loan Fragment, '' and that she really should n't have done that! As regards my current dilemma, he said ( incorrectly ) that my current interest was even owed! Instead, the amount paid mysteriously appeared in the PAYOFF section of the ACCOUNT INQUIRY. Very disturbed, I pointed out to him that the Bank 's ACCOUNT INQUIRY was INTERNALLY INCONSISTENT! I told him that there was very little accountability and way too much oblique " blame-passing '' to their mysterious BACK ROOM for loans! He replied that it would take hundreds of thousands of dollars to correct their system! Thus, I asked XXXX XXXX the name and phone number of the person above him. It was XXXX XXXX, Regional President. I phoned her office that very afternoon. She was away on business, so I gave a detailed description of the problem to her Assistant - - XXXX XXXX. I also gave her my home phone number. As of now, no return call to me has been made.