Consumer complaint received 2018-11-19
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: PNC Bank N.A. (PA)

This concerns a significant issue with the mortgage escrow account for our summer property at XXXX XXXX XXXX XXXX, XXXX XXXX, NJ XXXX and funds that were paid out from that account. 

Here is the time line and the list of facts : XX/XX/XXXX My wife and I decided to re-mortgage our shore property to take advantage of the lower mortgage rates. We chose to work through our local PNC bank branch in XXXX, PA, and to use the local lone officer, XXXX XXXX. In the process we also contacted a new insurance agent to re-work our flood and home owners insurance policies, thereby saving us additional money. Our old insurance agent was XXXX XXXX XXXX, XXXX XXXX. XXXX XXXX, XXXX XXXX XXXX XXXX, NJ XXXX. For the new policy we chose XXXX XXXX XXXX XXXX, XXXX XXXX XXXX, XXXX XXXX, XXXX XXXX XXXX, NJ XXXX. The savings were significant. 

I have included e-mail documentation showing the process of acquiring the new policy and the approval from PNC Bank. 

XX/XX/XXXX We paid XXXX XXXX at XXXX for a full year of flood coverage with XXXX of Florida, a total of {$2500.00}, to bind the contract as per the directions from our loan officer, XXXX XXXX. 

XX/XX/XXXX XXXX XXXX e-mailed copies of the new flood insurance declaration, the payment voucher, and the bound policy ( see attached e-mail paper trail ). When we spoke to XXXX, he told us that he had forwarded the files to the proper individuals for inclusion in our files. 

XX/XX/XXXX We had the closing on the re-mortgage, signing the papers which included our monthly payment based on the new flood insurance policy/premium. 

Late XX/XX/XXXX I phoned XXXX and informed them that we would be cancelling the old flood policy and were going with a different agent, thanking them for their help over the years. They sent a cancellation request for the XXXX XXXX for us to sign and return. I did via USPS. 

XX/XX/XXXX The old XXXX XXXX XXXX policy lapsed and the new XXXX policy took over. We were never made aware until XXXX. 

XX/XX/XXXX PNC Bank escrow department sent {$9700.00} to XXXX XXXX XXXX in payment for the policy we had cancelled and replaced. 

XX/XX/XXXX We received an Escrow Statement from PNC Bank dated XX/XX/XXXX, showing that we owed {$12000.00}, due XX/XX/XXXX, and raising our monthly payment from {$1900.00} to {$3500.00}. Looking at the statement we noticed that they had paid out the {$9700.00} to XXXX for insurance we had cancelled. I immediately called the PNC Escrow Department and spoke with a XXXX. We were told to pay the exact amount owed. 

Thursday, XX/XX/XXXX I called the escrow department again and spoke with XXXX, who informed me that they did not have the declaration page for the XXXX XXXX  in our files anywhere. I was instructed to upload a copy of the new declaration page to XXXX using the pin code XXXX. I sent a .pdf file of the page as requested. Our phone call was terminated. 

After waiting 10 minutes for her to call me back, I called the escrow department and spoke with XXXX. XXXX did call me during that call, and we agreed that since XXXX was contacting XXXX XXXX XXXX, I should continue with him. 

XXXX contacted the customer service department at XXXX XXXX XXXX. In a conference call with one of their customer service reps, we were told that they needed a copy of the declaration for the XXXX XXXX and the cancellation order. When prompted, the individual reluctantly said that once they had the declaration page and a copy of the cancellation I would receive a full refund within 4 6 weeks. XXXX promised to send that pages as soon as they cleared the PNC system 3-5 days, I believe. 

Thursday, XX/XX/XXXX Following the conference call with XXXX, XXXX connected me with another young lady in the escrow department who, with her supervisor, worked through the payment owed. We would receive a new escrow statement listing our monthly payment due as {$1900.00}, due beginning XX/XX/XXXX. It was further determined that we would have until XX/XX/XXXX, to make the payment owed to cover the escrow shortfall created by PNC sending the money to XXXX. We were told to pay the exact amount owed on the new statement and that the payment would trigger a new escrow statement reflecting the amount due to fill the escrow account and a monthly payment of {$1900.00} when we remitted that payment. 

Thursday, XX/XX/XXXX -- I contacted XXXX XXXX, our former insurance company, and discovered that the original cancellation order we had signed and mailed had never arrived. They never bothered to let us know that it had not. XXXX XXXX at XXXX e-mailed a new copy of the cancellation order to me, we signed it, dated it XX/XX/XXXX ( the date that the XXXX policy was set to expire ), and I e-mailed a scanned, signed copy to them to be returned to XXXX. XXXX promised to send it immediately to XXXX XXXX XXXX. She also approved the date of XX/XX/XXXX, on the cancellation order. 

Tuesday, XX/XX/XXXX We received in the mail a new escrow statement dated XX/XX/XXXX showing a deficit of {$7200.00} and the monthly payment of {$1900.00} when the escrow due was credited to our account and the account refigured using the correct amount for the flood insurance. If we did not pay the short fall, then the monthly payment would be {$2500.00}. 

Starting around XX/XX/XXXX We began to receive calls from XXXX from the PNC Bank asking for information on our issue and offering to try to help. She gave us the phone number to her desk phone. After our initial conversation I attempted to phone her four ( 4 ) times over three days and each time had to leave a message on her answering machine. Typically I left times and dates when I would NOT be available due to other activities and asked her to call at any other time. It was always during those times when I was unavailable that she returned my calls, leaving me to call her back and leave another message. 

Tuesday, XX/XX/XXXX Wishing to avoid the increased monthly payment and expecting reimbursement from XXXX within a few weeks, we paid the {$7200.00} into the escrow account to PNC at our local branch on XXXX XXXX XXXX in XXXX, PA, empting about one quarter of our savings account to do so. 

Monday, XX/XX/XXXX We received a letter from PNC Customer Service dated XX/XX/XXXX, stating they made a number of unsuccessful attempts to contact us and giving us a customer service number to call if the issues were unresolved. 

Wednesday, XX/XX/XXXX We received an e-mail from XXXX XXXX at XXXX XXXX XXXX informing us that they had gotten a message from XXXX XXXX XXXX that we needed to submit a letter from PNC Bank indicating that they accepted the flood insurance from XXXX in lieu of the XXXX XXXX  policy before they could begin to process our claim. 

Thursday, XX/XX/XXXX -- I called the PNC Mortgage Insurance Department to get the letter forwarded to XXXX and spoke with XXXX. She transferred me to XXXX. XXXX promised that the letter would not be a problem for them. I supplied her with the e-mail for XXXX XXXX, the agency fax number, and the mailing address. XXXX informed me that typically it would take 7 business days for the letter to be processed. When I explained that that delay would be unacceptable, she offered to expedite the process. I asked for an e-mailed copy of the letter and was told that company policy forbade sending e-mails but that she would send a copy via the USPS. She did send a request for the letter, asking that it be moved forward as quickly as possible. 

Monday, XX/XX/XXXX -- We received a phone call from a PNC Customer Relations Escalation individual named XXXX XXXX. As a part of our conversation she told me that her records showed that we were mailed a copy of the letter XXXX requested about accepting replacement insurance. When I asked about the copy that was to be sent to XXXX she balked then said that she did not see one. Minutes later she said that she thought they had gotten a copy. She asked for all of their contact information and I supplied XXXX XXXX name, phone number street address and fax number again. She told me she would work to see if she could rectify the issues and would get back to me on XX/XX/XXXX when she returned from being away. 

Monday, XX/XX/XXXX We received in the mail a copy of the letter from PNC to XXXX and XXXX accepting our flood insurance in lieu of the XXXX XXXX XXXX  policy. The letter was dated XX/XX/XXXX. 

Wednesday, XX/XX/XXXX I called XXXX XXXX to update her on the ( lack of ) progress and she commiserated and again told me she would do what she could to help us out. 

Thursday, XX/XX/XXXX XXXX XXXX called to ask if we had heard anything. Again she was soothing but not terribly helpful. 

Saturday, XX/XX/XXXX In the mail we received notification from XXXX XXXX XXXX about changes to our policy dated from XX/XX/XXXX, through XX/XX/XXXX. 

Monday, XX/XX/XXXX I called XXXX XXXX to ask about the notification, believing it further proof that XXXX had not cancelled the policy and had no intention of refunding the money PNC forwarded to them. She was unavailable and I left a message asking her to call back. When she did she had no answers and promised to continue to work on our behalf. She would be away until XX/XX/XXXX but would try to call me on XX/XX/XXXX, hoping we would have heard something positive from XXXX XXXX. 

I phoned XXXX XXXX at XXXX XXXX XXXX to ask about the notice. I was told that the letter from PNC accepting the flood insurance we paid for had never arrived. I e-mailed her a scanned .pdf file of my copy of the letter and she promised to forward it to XXXX for inclusion in our file. 

Following that phone call I contacted the federal Consumer Financial Protection Bureau to find out how to file a complaint. I was given the process, which included this Word document detailing all of the timeline and information regarding the complaint. 

I also called the customer service department of XXXX XXXX XXXX to see if there were additional hoops through which I had to jump. I spoke with XXXX XXXX. He informed me that according to my file XXXX received the cancellation order on XX/XX/XXXX but found a problem with the date on the form. They returned it to XXXX and asked for a correction. That corrected form was received and logged into our account on XX/XX/XXXX, prompting the second e-mail requesting the letter from PNC. Since XXXX had not received that letter before today, they could not forward it. I e-mailed Mr. XXXX the same .pdf copy of my letter sent earlier to XXXX , and he up-loaded it into our file. I asked him if there were additional forms or issues I needed to take care of to get my refund and he investigated. After several minutes he returned to the line to inform me that as of XX/XX/XXXX, the law had changed. Our case was going to be handed off to the regional service/sales manager for New Jersey and he would contact us within forty-eight ( 48 ) hours to let us know the disposition. When I asked if we would get our full refund and how long we might expect that process to take, I was told that the regional service manager would talk to me about whether we would get some or none of our money back and that it was above his pay grade to discuss the possibilities. 

At this moment we are out the {$9700.00} that PNC sent to cover an insurance policy they had evidence was no longer in effect plus the {$7200.00} we took from our bank account to place into the escrow account to cover the shortfall created by PNC. That is a total of {$16000.00} we do not have at our disposal. For a retiree that is a heck of a lot of money to be out.