Consumer complaint received 2024-09-04
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: TRUIST FINANCIAL CORPORATION (NE)

Here is a summary of the issue that was created when Truists servicing department send my escrowed flood insurance payment to an incorrect address, which caused a lapse in coverage and therefore both Truist and a secondary bank ( XXXX XXXX  ) which has a HELOC, to put in place forced insurance. The secondary lender billed me directly for the forced insurance ( which I paid directly ) and Truist continues to send me letters about placing forced flood insurance given their servicing error. I am been attempting to have Truist cover the cost of the forced flood insurance for both the Truist and XXXX XXXX  forced insurance. I have called them no less than 15 times and get stuck with a customer service agent who has limited knowledge of the case, cant access the complete file, and are unable to assist. I have asked to be transferred to a supervisor or manager and that has not worked and Truist has indicated someone will call me back and that has never happened. In addition, after being on hold with Truist for more than approx 10 minutes, when someone answers from Truist, they are unable to hear you. This has happened several times and Truist acknowledges they are aware of the issue but it continues to happened. They say, if the call is disconnected or something happens, they will call back immediately. They have never called me back after getting disconnected, not being able to hear me, etc. 

Here is a summary of the timeline below. 

XX/XX/scrub>XXXX XXXX  The renewal for XXXX was generated and sent to XXXX, you, and Truist. 

XX/XX/year>XXXX  We notified you of the increase, and you requested a requote with another XXXX. 

XX/XX/scrub>XXXX  You approved the emailed requote and asked us to proceed. 

XX/XX/year> We emailed you and XXXX with the requote and addressed you both. We told you to reach out to Truist and coordinate payment, and we told Truist that payment needed to be received and processed by XX/XX/year> to avoid lapse in coverage. 

XX/XX/year> We emailed you and XXXX with the requote and addressed you both again. This email was exactly the same as the one sent on XXXX 

XX/XX/year> You signed the cancel/nonrenewal letter for the XXXX  policy. A copy was mailed to you and Truist on XX/XX/year>. 

XX/XX/year> You emailed us stating that you spoke with Truist and they would issue payment on XX/XX/year> ( this is after the date of XX/XX/year> that it needed to be paid by ). 

XX/XX/year> - XXXX reached out to us to confirm the cancel/nonrenewal letter that she received. We provided the requote and she stated that Truist will be issuing payment. 

XX/XX/year> We went to check on the policy to verify it was paid and issued, it was not paid by XXXX. 

XX/XX/year> I checked with XXXX  on the payment and if it was received. They confirmed it was not received and provided me the address for Truist to issue payment. 

XX/XX/year> I chatted with mycoverageinfo representative for Truist that confirmed payment did not go to XXXX or XXXX, they sent it to an address that is not affiliated with either of us. 

Note : The attached invoice shows the correct XXXX addresses at the bottom that clearly state where mailed payments need to go. XXXX  is in Truists system on mycoverageinfo as well, I have never had issues in the past with incorrect addresses being listed for them in the system. I am not sure who processed the payment to go to the wrong place, but this is Truist 's error. 

XX/XX/year> I notified you of these errors in the email about the payment being sent to the incorrect address. 


Since his payments are most likely escrow required, he can report the mishandling of his escrow account on the following website : https : //www.consumerfinance.gov/. This is usually what I advise clients, if their lender severely screwed up and causes lender placed insurance / extra charges, yet the customer and we did everything correctly. Maybe if he mentions this to his lender, they will accommodate him for the mistake, potentially cover the XXXX.