Consumer complaint received 2023-08-22
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: PNC Bank N.A. (NY)

I have an investment property mortgages serviced by PNC Bank , National Association ( " PNC '' ). The mortgage was originated with XXXX XXXX XXXX ( " XXXX '' ) on XX/XX/XXXX. Servicing was transferred to PNC effective XX/XX/XXXX. The mortgage was enrolled in automatic payment through XXXX, and the bank account information from XXXX was furnished to PNC and I was automatically enrolled in PNC 's automatic payment subject to the " PNC Automated Payment Terms and Conditions for PNC Mortgage and Home Equity Accounts '' ( " Auto-Pay Terms '' ). 

I note that the automatic payment was with a bank account ending XXXX. 

Pursuant to Section 16 of the Auto-Pay Terms, a cancellation must be made three ( 3 ) business days before the next payment due date by using ... .. ( b ) fax [ the ] request to XXXX. 

A copy of the servicing transfer letter, auto-pay transfer and the Auto-Pay Terms are attached. 

A new bank account was to be used for the XX/XX/XXXX payment. On XX/XX/XXXX, a new " Automated Payment Authorization Form '' ( " Change Form '' ) was completed with a new bank account to be used for automatic payment. The form was furnished by PNC through it's website. The completed and signed form was sent to PNC by fax at XXXX on XX/XX/XXXX. 

A copy of the Change Form and confirmation of transmission by fax are attached. 

Because an auto-pay change is a de facto notification to PNC to cease using the account ending XXXX and since XX/XX/XXXX was more than three business days prior to XX/XX/XXXX, that PNC was provided ample notice pursuant to its own Auto-Pay terms to cease using that bank account. 

On XX/XX/XXXX, a PNC payment failed because of insufficient funds in account ending XXXX ( the account is to be closed and and therefore no funds were kept there ). 

I called PNC the following day ( XX/XX/XXXX ) and spoke with a representative named XXXX. XXXX indicated that she had no record of the fax being received, and this is why the auto-pay was not changed. She was able to have the payment information changed for the XXXX payment and suggested I make a new payment online. I had inquired about a fee being charged for the returned payment noting that I had proof that the fax was sent and that PNC had sufficient time to act ; however, at that point, a payment return had not been posted, so she was unable to opine on fee removal. 

A new mortgage payment ( from the correct account ) was made on XX/XX/XXXX. 

I called PNC again on XX/XX/XXXX after seeing the {$25.00} non-sufficient funds fee posted. I am attaching a copy of the fee notice and statement. The representative ( I could not gather the name ) also would not remove the fee. Her argument was that the signature block presented the text : " I Understand that I must continue to make payments on my account until I have received confirmation from PNC Bank that my request has been processed and when automated payments will begin. I accept that automated payments will continue on my account until I, or PNC, cancel the service. '' This argument is however a non sequitur. The argument is that " if I have not received the confirmation, I am therefore not enrolled in auto-pay, therefore I must continue making payments ''. This would be true if this were a new enrollment and I had not timely made a mortgage payment ( the XX/XX/XXXX payment is timely due to the 15-day grace period on residential mortgages ) ; however, in this case, I am presented with a fee for a returned payment which pursuant to the Auto-Pay Terms was validly canceled. 

In the alternative, Section 15 of the Auto-Pay Terms governs changes and requires that changes be made ten ( 10 ) business days prior to the next scheduled automated payment date. The scheduled automated payment date was XX/XX/XXXX ( which was a Sunday ). The XX/XX/XXXX change was fifteen ( 15 ) business days prior to XX/XX/XXXX, which again was sufficient time to process the change. I also note that receiving confirmation of the change is not a condition of the validity of the change itself ; only that I must continue to observe all other payment terms of the mortgage ( which I have ). 

I only want to have the {$25.00} fee removed or credited ( or if this matter is resolved following the due date of the fee, where I intend to pay the fee to avoid a further question of delinquency, refunded ). I am not harmed in any other way and incurred no fee at my bank as a result of the returned payment, but do not believe PNC should profit from their negligence and violation of Regulation E.