Consumer complaint received 2017-05-08
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: CAPITAL ONE FINANCIAL CORPORATION (PA)

I have had a mortgage and HELOC with  XXXX   XXXX  since  XXXX   XXXX  and have always paid on time and never missed a payment. During this time I have completed a Rate Rene wal 3 or 4   times - back in  XXXX   XXXX  I completed another Rate Renewal which is like an internal refinance where I can pay a fee equivalent to one month 's mortgage payment and lock in the current market interest rate for a fixed pe riod of 5 or 7 years. At the time my mortgage payment was {$720.00} ( principle & interest only ) with an i nterest rate of 2.75 %. My rate renewal offer during  XXXX   XXXX  was to pay a fee of {$720.00}  (  my then mortgage payment ) and lock in an interest rate of 2.875 % effective  XXXX / XXXX / XXXX  for 5 years and lower my payment to {$710.00} effective  XXXX / XXXX / XXXX . On  XXXX / XXXX / XXXX  I paid my mortgage early for  XXXX   XXXX . The next day I logged back in online to complete m y Rate Renewal  however the system now was showing that my interest rate had changed to 4.00 % effective  XXXX / XXXX / XXXX   XXXX   XXXX   XXXX  ) and my payment increased to {$790.00}. This happened because I paid my  XXXX   XXXX  early ( on  XXXX / XXXX / XXXX  ) and the Capital One online system showed I now only owe for the period of  XXXX   XXXX  therefore when I looked at my Rate Renewal offer it had changed from the day before ( again, b/c I paid  XXXX   XXXX  early ; so I 'm being penalized for being a great customer and paying early ). The offer was now I had to pay {$790.00} for the  Rate Renewal f ee and the interest rate of 2.875 % would n't take effect until  XXXX / XXXX / XXXX  and the lower payment of {$710.00} would take effect  XXXX / XXXX / XXXX . I called numerous times into customer service to complain about this issue and question why th e Rate Renewal o ffer changed just because I paid the  XXXX   XXXX  payment on  XXXX / XXXX / XXXX . I always heard some version of well that 's how the online system is applying it and I 've expressed that it is wrong and needs an override because I 'm being penalized for paying my mortgage early on  XXXX / XXXX / XXXX . Early in  XXXX   XXXX  I spoke with a supervisor named  XXXX   XXXX  at phone number  XXXX , his operator ID is #  XXXX . Then on  XXXX / XXXX / XXXX  I received a call from  XXXX   XXXX  from the  Office of the President at phone nu mber  XXXX  extension  XXXX . To each of them I 've expressed my dissatisfaction with the situation and expressed how I received a letter from Capital One dated  XXXX / XXXX / XXXX  where they refunded me {$62.00} which is the difference in the Rate Renewal fee of {$790.00} ( what I paid ) and {$720.00} ( my then mortgage payment for  XXXX  &  XXXX   XXXX   XXXX  which should have been the Rate Renewal fee I paid from the beginning because I submitted my Rate Renewal in  XXXX   XXXX  so the correct interest rate of 2.875 % should be effective  XXXX / XXXX / XXXX  and the lower payment of {$710.00} would have started with my  XXXX / XXXX / XXXX  payment. However, because I 'm being penalized for being a great and loyal customer and paying my mortgage early on  XXXX / XXXX / XXXX  the interest rate went up to 4.00 % and my payment for  XXXX   XXXX  was {$790.00 } ( which I paid ). I  've repeatedly asked  Capital One to  adjust my payments based on the same principle of why they refunded me the difference in  the Rate Renewal f ee in  XXXX   XXXX . So the resolution I 'd like to see with Capital One and what I 'm asking the CFPB to assist me with is this : I paid {$790.00} for  XXXX   XXXX , the principle and interest breakdown for this month should be based on the {$710.00} payment and the difference of {$790.00} and {$710.00} ( {$77.00} ) should be applied to only principle and my payments from there on out (  XXXX   XXXX  to present ) should also be adjusted based on the updated principle balance after each payment and the payments I 've made each month of {$710.00} since then.  Capital One had a class-action lawsuit settled against them in the past for their Rate Renewal practi ces and they 're back at it again. I 'm concerned how many other hard-working customers have fallen victim and have been taken advantage of like myself. Please feel free to contact me if you have any questions and thank you very much for your help in this matter.