Consumer complaint received 2024-07-11
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Fees charged
Company: JPMORGAN CHASE & CO. (TX)

Chase Mortgage Breech of Contract Chase representatives went outside of our signed Final Agreement Contract and allegedly approved unverifiable payment extensions that neither my wife or myself requested. Their repeated actions over a three year period caused a shortage in our principal payments with additional interest charges at Maturity of the loan that as per our contract was illegal. As Executor over our loan Chase and its Representatives should have been aware of this even though our contract was initially with XXXX XXXX XX/XX/XXXX Opened Home Equity Loan with XXXX XXXX 240 monthly payments @ {$720.00} for 20 years We set up Auto Draft Payments for the XXXX of every month please see attached contracts XXXX Roughly one year later Chase took over XXXX XXXX and the Loan. 

We never received any additional contact from XXXX XXXX or Chase concerning our loan. Unfortunately neither did we monitor the loan over the 20 year period. 

We were contacted by Chase in XXXX of XXXX stating that they could no longer auto draft our payment for the following reasons in which they gave none. However they attached an additional final payment amount of {$7200.00} ( XXXX ) It was at that point that we realized we were 3 months beyond the Original Contract Maturity Date ( XX/XX/XXXX ) of the loan, thinking we had over paid XXXX and XXXX. 

We contacted Chase to find out what was going on, and to DISPUTE the additional Principal Balance of {$7200.00} We were finally told that we allegedly took three Non-Verifiable Payment Extensions in XXXX XXXX and XXXX. 

Chase claims that they had a XXXX XXXX XXXX XXXX XXXX XXXX  that they say we allegedly participated in. 

My wife and I have vehemently denied any knowledge of any such program and regardless of that, we had NO NEED TO PARTICIPATE IN ANY SKIP PAYMENT EXTENSION PROGRAM, siting that our payments were Auto Drafted Weve asked for and have been denied any proof or evidence of our participation in the program.

Weve asked for the parameters or any rules or guidelines pertaining to their program as evidence if such a program existed, and they say they dont have anything, ie verbal phone recordings. 

Chase told us that signatures and documents werent necessary, and nor did they bother to send a confirmation number, or a letter at a later date confirming the alleged extension to their customers, saying only that the program has ended now and they had NOTHING ABOUT THE PROGRAM See attached Chase CFPB response letter. 

Weve received multiple Payment History Reports since filing our DISPUTE. The following is a list of Discrepancies that we found. 

( see ) First SUSPICIOUS ACTIVITY on Payment History Statement in XXXX XX/XX/XXXX Transaction - Extension UPDT??? This entry is unexplained and SUSPICIOUS However we were unaware of this entry at the time from Chase. Though there was no Extension Applied. Why would this entry be here? 

XX/XX/XXXX Payment taken Posted late to account XX/XX/XXXX XX/XX/XXXX Payment Debited {$720.00} XX/XX/XXXX Payment Posted XXXX  15 days later is the first Skip Payment Extension and 15 Day before payment is due??? NO NEED FOR EXTENSION! 

XX/XX/XXXX POSTED Transaction EXTENSION XX/XX/XXXX POSTED {$50.00} FEE ASSESSMENT PAYMENT WAS NOT DUE UNTIL XX/XX/XXXX WHY WAS EXTENSION POSTED TO ACCOUNT? 
No XXXX XX/XX/XXXX payment drafted from the account XX/XX/XXXX Payment Increased to XXXX With the total amount of {$720.00} being applied to INTEREST and Chase pocketing the Additional {$50.00} Overpayment XX/XX/XXXX {$50.00} Fee PMT Throughout the remainder of XXXX there were no other SUSPICIOUS ACTIVITIES until XX/XX/XXXX Debit XX/XX/XXXX Posted ( {$770.00} ) XX/XX/XXXX Debit XXXX XX/XX/XXXX EXTENSION POSTED XX/XX/XXXX FEE ASSESSMENT ( {$50.00} ) XX/XX/XXXX No Loan payment Debited for XXXX XX/XX/XXXX Debit {$770.00} XX/XX/XXXX Posted {$720.00} Applied to Interest {$000.00} applied to Principal {$50.00} Pocketed by XXXX XX/XX/XXXX FEE PMT {$50.00}? No Explanation No MALICIOUS ACTIVITY XX/XX/XXXX {$000.00} Debited EXTENSION POSTED XX/XX/XXXX {$50.00} Fee Assessment XX/XX/XXXX FEE PMT XXXX Debit {$770.00} {$50.00}??? 
XX/XX/XXXX Posted {$720.00} to Interest {$50.00} Pocketed by XXXX XX/XX/XXXX {$50.00} Fee PMT SUSPICIOUS ACTIVITY ON XX/XX/XXXX USER MEMO??? 

SUSPICIOUS BECAUSE OF THE DAY THIS WAS ENTERED the XXXX Beyond the above listed SUSPICIOUS ACTIVITIES The payment history stays consistent until XX/XX/XXXX Entry reads RELATION UPDATE Weve been told by Chase that they didnt have an obligation to explain or to provide their banking information to us.. 
( see highlighted attached letter ) action is Illegal and a Breach Of Contract.

We signed A Final Agreement Contract ( see attached copy ) Basically at no time should anyone at Chase regardless of any program CHANGE OR ALTER ANY PAYMENTS.

The payments are on AUTO DRAFT.

Per our Contract should we not have the monthly payment to be drafted in our account on the due date there is a {$25.00} late fee After 10 Days. Cheaper than the {$50.00} Assessment Fee from the Skip A Payment program and WOULD NOT ALTER THE INTEREST ON THE LOAN. 

Chase even has Auto Draft Protection whereby we had no need for the Program theyre claiming we participated in without any proof or evidence. 

The house was initially funded by XXXX XXXX. After 8 years we refinanced with XXXX XXXX. During the 8 year period with XXXXXXXX XXXX we paid on time never late or needing any payment assistance. Our credit rating and pay history was and still is Outstanding In XXXX the year we initially took out the loan with XXXX XXXX we started the Auto Draft Payment Account with the additional {$13000.00} from the loan. 

We did not need nor did we participate in any Skip Payment Program Chase Executive Branch Response In response to the letter from Chase dated XX/XX/XXXX We confirmed your unpaid principal is accurate Beginning with the second paragraph Chase claims to have found the balance is accurate ; as they reference The Promissory Note and interest rates. 
( please see attached letter ) When the payments are calculated according to the contract Notice Of Final Agreement should Chase have followed to the letter of the Law of the signed Agreement where it states in BOLD WRITING that ; IT MAY NOT BE CONTRADICTED BY EVIDENCE OF PROIR CONTEMPORANEOUS, OUR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES etc etc..

When calculated the 240 payments for interest and principal are correct and would have been correct at the end of the loan, if Chase would not have altered the Contract.

The Final Agreement states that we ( the borrowers ) were not allowed to participate in any programs with Chase or any other entity that would have modified alter or change the loan. 

We ( XXXX and myself ) understood at the time of signing, ( XX/XX/XXXX ) that just like at the time of signing, in XXXX XXXX ) that the contract was Legal and Binding on our behalf and equally binding with XXXX XXXX XXXX as we looked the loan officer in the face when he read it to us and all three parties signed the documents. 

However it was Chase the Legal Executors of the loan who altered the Final Agreement and ultimately the Promissory Note through their actions. 

Upon signatures of all parties the CONTRACT IS FINAL and COULD NOT BE MODIFIED OR ALTERED BY EITHER PARTY. 

Chase is claiming that we altered the contract 3 years in a row, without any red flags, warnings, notifications or any Documentation what so ever. This was solely of there doing as Executors of the loan. 

To insure that we were doing our part We set the account up on AUTO DRAFT PAYMENTS TO BE DRAFTED ON THE XXXX OF EVERY MONTH FOR 20 YEARS FOR 240 PAYMENTS.

Chase is now saying 20 years later that THEY ADMITTEDLY BROKE THAT CONTRACT AGREEMENT THREE TIMES.

We never asked to for a Payment Extension and ADMITTEDLY THEY SAY THAT THEY HAVE NO EVIDENCE THAT WE DID. 

As Executors of the Loan it would be Chases responsibility to monitor the DETAILS and ANY VARIABLES and DISCREPANCIES TO The LETTER OF THE LAW OF THE CONTRACT and not just as they say willy nilly approve a LOAN EXTENSION WITHOUT VERIFICATION OR DOCUMENTATION. Those actions are ABSURD AND ILLEGAL.

That action by Chase would only benefit CHASE at the end of the contract, and cause a hardship on the customer.

CHASE ADMITTEDLY SAYS THAT THEY WERE NEGLIGENT BY NOT MAINTAINING NOTES AND DOCUMENTATION TO AN ACTIVE LOAN THAT THEY ARE COLLECTING INTEREST ON THROUGHOUT THE DURATION OF THE LOAN. 

By this action Chase has failed to do what they were being compensated to do through their collection of interest payments in the amount of XXXX That action also by Chase would only benefit CHASE at the end of the contract, and cause a hardship on the customer, where the payment history shows that several times there were no payments made to the Principal. 

The contracts state that our payment isnt late until 10 days after the due date for a late fee of {$25.00}. Chase implies that we would opt to pay twice that amount and alter the interest payments The EXECUTIVE BRANCH RESPONSE also says there was a fee assessment charge for the EXTENSION, and we paid it.

That statement is totally insulting to us as their customer, for Chase to use that as a defense for their breaching the contract, ignoring the fact that THEY had full control and access of the account via auto draft and THEY TOOK THE ASSESSMENT FEE, when they chose to and never informed us of it.

The records show that they also TOOK an additional {$50.00} with the next payments. They were able to do that because FUNDING WAS ALWAYS AVAILABLE, in our account, and we were/ are covered by Chases Over Draft Protection Plan since opening the account. We had no need for Payment Extensions Each time that the Extension fee was taken by Chase 15 days after a regular payment of {$720.00} and 15 days before the next payment was due. ( please see payment history ) If Chase had such a program in place, that they ADMITTEDLY HAVE NO EVIDENCE OR PROOF OF as per the Promissory Note They were Not to Manipulate or Alter the Contract to a disadvantage to the borrower, by collecting additional interest payments. 

As Executors of the loan CHASE had three opportunities to rectify the problem, with the first being at the end of the year in XXXX to inform us of the status of the loan. 

The second opportunity would have been when the second Extension was applied to the loan. And the same for the third Extension. 
As Executors Chase failed to do that. 
In XXXX the payment history shows Relationship Update. We didnt hear a word from Chase.

While Chase cant explain today any details of their Skip Payment Extension Program its obvious that the program was designed to take advantage of unsuspecting trusting borrowers, who were not micro managing their account.

This may explain the first Extension entry in XXXX of XXXX but no Extension was applied at that time. ( see payment history ) This program could only end up with the Borrower being Upside Down owing more interest and additional payments on the loan. 

Chases XXXX poor mismanagement of the loan continued into and beyond the final year and month of the loan Maturity Date XX/XX/XXXX by Chase not contacting us in XXXX or XXXX to advise us of the maturing of the loan, but instead payments went 3 months beyond the actual Maturity Date. 

And then scrambling to cover up their XXXX up, they realized that they had to also change the Maturity Date of the loan. 
That action is also OUTSIDE OF THE FINAL AGREEMENT CONTRACT. 

We should have been contacted and a meeting arranged to amicably figure out what to do next. But it was obvious through all the correspondence that Chase intentions were and are to bully us and hold our home as their collateral.

As layman, we are unable to understand that by Chase skipping the 3 payments during those 3 years and charging interest for the 3 years one year at time or consecutively charging interest.

But remind you, that they also increased the monthly payment each of those 3 times by {$50.00} and still charged a {$50.00} late fee. 

We can only assume that now theyve added 19 years of interest on one payment Extension of {$720.00}.

18 years of interest on the second of {$720.00} And 17 years of interest on the third at the same amount.

Chase shows no credit for the {$50.00} overpayments Due to the ALLEGED EXTENSIONS Unknowingly to us CHASE moved the Maturity Date As per the payment history the payment were missed and are owed, but that was all because of Chases MISMANAGEMENT of the account and by ADMITTEDLY BREACHING the four corners of the Two contracts, the Promissory Note as well as the FINAL AGREEMENT.

In the Response letter the EXECUTIVE ADMITTEDLY ACKNOWLEDGE RESPONSIBILITY FOR APPROVING THE EXTENSIONS HOWEVER CHASE FAILS TO TAKE ANY RESPONSIBILITY.

As EXECUTORS of our loan, When the Mismanagement of our loan came to the forefront in XXXX Chase and their representatives all the way up to the Executive Branch participated in the cover up and laid the burden of proof on their customer XXXX and XXXX XXXX WHICH WE DISPUTE XXXX XXXX XXXX First and foremost Our Loan Maturity Date as per Signed Contract is XX/XX/XXXX. 
Someone in your office is attempting to change that date. That is illegal. Our contract has expired. 


Secondly Why didnt we receive this type of statement from Chase in XXXX of XXXX when the payment was made on XX/XX/XXXX however a {$50.00} FEE ASSESSMENT was applied on XX/XX/XXXX though the payment wasnt due until XX/XX/XXXX of XXXX and then the Illegal Extension was applied for the month of XXXX see attached payment history Thirdly Why didnt we receive this type of statement in the following years of XXXX and XXXX when a Chase Representative applied alleged Illegal extensions to our loan? 

And, Why didnt we receive this type of statement in XXXX of this year XXXX, 5 months out, before the Signed Maturity Date of the loan? We didnt receive any prior notice to what was going on with our Mortgage Loan until after you changed the Maturity Date without contacting us as you breeched our contract.

This was simply Chase exhorting their power over your customer and covering up your tracks before we could do anything to respond. 

Show me in writing in our contract where you can change the maturity date of our loan? 

The attached payment history shows Chase Representatives Screwed Up Our Loan and now Chase is charging us more than XXXX dollars though Chase has already received {$72000.00} in interest per the contract but choosing to swindle us out of an additional {$6000.00} more!!! 

XXXX XXXX The letter above is one of several letters I mailed to Chase Mortgage Lending, disputing their bogus work in managing our loan taken over by them initially with XXXX XXXX. 

We closed our refinance with XXXX XXXX in XXXX of XXXX. We set up the payments to be auto drafted from our checking account. Eventually JP Morgan Chase bought out XXXX XXXX approximately one year later in XXXX. 

We have payment history statements provided by Chase, showing that the auto payments were fine until Chase took over the account. Our payments were scheduled for the XXXX of each month beginning with XX/XX/XXXX and ending XX/XX/XXXX. 

However, Chase because of 3 alleged payment extensions we supposedly requested by phone, they say without notice they gave us a new maturity date to XXXX of XXXX via a letter they sent to me, stating that they no longer could auto draft payments to our Mortgage Loan account and we would have set up a new auto draft, or we could request a final payment in the amount of plus {$6000.00}, or continue to make monthly payments. 

In writing and over the phone I explained that we didnt receive any notice of the loan reaching maturity in the months preceding the actual XX/XX/XXXX date, that would have prepared us and given us more time to investigate the facts of the situation. 

I explained to multiple Chase representatives that since the XXXX letter via phone and fax that we were under a signed contract that could not be modified without consent of both parties and that their claim of our request for unverifiable loan extensions over the phone was bogus and a cover up for XXXX poor accounting on their behalf, and that we demand proof of any such request. 

They responded XX/XX/XXXX, and I quote Any information or document you requested that isnt included with this letter is either irrelevant, unavailable, considered proprietary, overbroad or unduly burdensome. End quote. 

They did not send any evidence of any requests from us ( my wife and I ) asking via telephone, and was approved, any such payment extensions. 

They have refused to explain any of the transactions they made that lead us into being charged an additional {$6000.00} plus dollars only to say that our principal portion wasnt paid off. 

I was even told by Chase that These contracts were not designed to come out equally at the end of the loan period, and that the interest portion was basically a guesstimate of the actual amount that will be due. I responded that when you do the math on the principal portion it comes out perfectly as according to the contract. And that it was because of their claims of payment extensions that has caused the problem. 

We explained that our monthly payments were {$720.00} and they were responsible via auto draft to make the payments. However the payment history shows they charged us additional fees of {$50.00} after they applied the extensions to our account, and then applying the total payment to interest. 

In one instance the payment history shows where they actually applied one cent to the principal and taking the balance for the interest Yes one XXXX was applied to our principal!!! 

In one incident they charged late fees of {$50.00}, and the {$50.00} cost fee. We explained that, AS PER OUR CONTRACT we could be charged {$25.00} late fee after 10 days and of course you would think that we would then receive a written notice from Chase of that happening.

I responded and at that point we would have immediately found their errors and alleged extensions. 

But until the XX/XX/XXXX letter in the 19 years Chase has managed our mortgage we never herd or received anything from Chase in reference to our mortgage, only that they would be changing to a new format. 

In the letter at the time we waiting for another response from the office of XXXX XXXX XXXX Executive Director for Chase. 

And In order to prevent Chase from destroying our credit report we have continued making the additional monthly illegal payments. 

Since sending this complaint in early XX/XX/XXXX to the CFPB, we have heard from the Chase Executive Office, and they still deny any responsibilities claiming that while they cant find any records because of the dates involved of our requesting alleged payment extensions, they say neither can we prove we didnt. 

I told them that our binding Final Agreement Contract along with our Homestead Contract prevented us from changing or modifying the loan for the term of 240 months 20 years.

I told them that while Im more than one hundred percent sure we didnt participate in their alleged extension program at any time and that our credit rating, checking and savings accounts that they also maintain were proof that would suggest that we didnt have a need for a payment extension. My wife and I have always been employed and the {$720.00} monthly payment has never been overburden-sum to us or our checking account. Weve always maintained savings and checking account jointly at Chase and also individually in two different credit unions the entire time of the loan that we can verify.

However should any competent Chase Representative having received a call pertaining to our loan account should have said something like unfortunately XXXX XXXX your loan contract prevents you from participating in our extension program by modifying your loan agreement, but as per your contract youre able have a 10 day late charge of {$25.00} if youre in such need of an extension, and you can pay it before your next monthly payment is due. 

During my last phone conversation with the second of 2 Executive Officers that Ive spoken with at Chase, Chase refuses to accept any responsibility whatsoever. He said that the first E/O determined that ( paraphrased ) Because we waited too long to file our Dispute, and neither side has any proof, that he would side with Chase rather than the Customer and therefore our dispute is denied. 

I requested to at least being provided with the details of their Now debunked Call Up Youre Approved Payment Extension Program, and I was told by the E/O that they cant and are unable to provide us with the details of that program since it has been shut down. I responded thats just another reason why I should have won my Dispute. For your inability to provide evidence that there was any such program. 

Ive also asked for, but theyve also refused to provide us with a complete calculations of how they determined the alleged delinquent interest and penalties,. They respond with, would I like a copy of the payment history. 

Neither my wife or I are XXXX, and dont know how to calculate the applied interest portion of our loan on the payment history, as they continue to collect additional interest payments and fees as weve just made the seventh payment past our original Maturity Date. 

Chase stole our joy and excitement of 2 people coming together in marriage and buying a home to raise our children and watch them leave the nest and hubby and wifey pay off the 30 year mortgage and live happily ever after. 

Theyve Stolen That From Us! Through their schemes and misappropriation of our trust and finances to ultimately line their coffers because we gave XXXX XXXX approval for Auto Draft and Chase took advantage of that! 

Thank you XXXX XXXX XXXX