Consumer complaint received 2023-03-07
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: CITIZENS FINANCIAL GROUP, INC. (OK)

The dispute is with Citizens Bank on a mortgage. The loan is with me and my son. My son lives at the house for which this mortgage was obtained. 

My son received a statement dated XX/XX/XXXX stating that his escrow account had a shortfall of {$3400.00}, which would raise his payment from {$1100.00} to {$1500.00}, a {$310.00} increase!! I knew something had to be wrong about that, so I reviewed the escrow records. The review showed that there were excessive insurance payments made in XXXX, which will be described below. 

In XX/XX/XXXX, Citizens sent an insurance payment to XXXX XXXX XXXX in the amount of {$2000.00} to cover the cost of the annual home insurance ( Citizens check no XXXX ). However, the check arrived after the expiration of the policy, and XXXX XXXX XXXX would not reinstate the policy. The insurance agent notified me of the problem, and a new policy with a new insurance company ( XXXX ) was obtained. In XX/XX/XXXX, Citizens sent a check to XXXX in the amount of {$1900.00} and {$23.00}. They sent another check to XXXX in the amount of {$360.00} in XX/XX/XXXX. 

On XX/XX/XXXX, I called my insurance agent to look into this. He told me that XXXX XXXX insurance received the check too late, and that they cancelled the policy and would not reinstate it. He also told me that when he contacted XXXX XXXX, that they said that they did NOT cash Citizen 's check XXXX, and that it was sent back to Citizens Bank to the address on the check ( see attached letter ). I contacted Citizens insurance department to let them know what had happened. They said that they would put a tracer on the check which would take seven days. I contacted the mortgage department ( representative XXXX XXXX to find out what the payment would be once the {$2000.00} was put back into the account. He said that he would have to check with the insurance department to discuss this, but since they were already closed, he would call me back the next day. He did not call me back. 

On XX/XX/XXXX, I called the Citizens insurance department again and spoke to a Lateesh ( sp? ). She said that the check was found and that the {$2000.00} would be back in the escrow account the next day, XX/XX/XXXX. I also spoke to XXXX in Citizens mortgage department. She told me that we could spread the shortage over 36 months with a payment of {$1300.00} to lower the required payment until the issue was resolved, but that she would have to submit it for approval. Not knowing what else to do, I told her to submit it. However, she told me that once the {$2000.00} was credited to the account, the new payment would be {$1200.00}. 

On XX/XX/XXXX, the normal automatic payment went to Citizens from my sons account. 

On XX/XX/XXXX, I checked the Citizens account online and found that the {$2000.00} was still not back in the escrow account, and the payment was still {$1500.00}. I called Citizens insurance line back again. However, apparently, I hit the wrong option on the automated system, and it sent me ( unknowingly ) to customer service, where I waited on hold for about two and a half hours ( there was no option for a call back ). They transferred me to the insurance department, where I spoke with XXXX, who put me on hold for another 30 minutes. I hung up because I had another issue to attend to. I called back again, and I eventually spoke with XXXX, who told me that the research department had found the money ( either found the check or that it was not cashed, I was not clear ). They had to issue a stop payment, which could have been done on XX/XX/XXXX, but that it had not happened yet. There was a note in the file at 9:09 a.m., that it will be put in the account ( presumably from the research department ). I wanted to complain about XXXX putting me on hold for 30 minutes and find out why the money wasn't in the account now, so she put me through to her supervisor, XXXX ( sp? ). XXXX said that there were processes that had to be followed, and that it would take several days to get it done since the stop payment hadn't occurred until this call ( XX/XX/XXXX ). I told her that it should have been done a week earlier. She acknowledged that mistakes had been made and that I should not have been told that the money would be back in on XX/XX/XXXX. I told her that all that I wanted was for the money to be replaced and to pay a normal payment as if the money were in the account. She said she understood, but that there were processes. I also told her that I would be filing a claim of fraud and theft with the Consumer Financial Protection Bureau the next day if the funds were not replaced. 

On XX/XX/XXXX, I checked the account again and to pay the balance between what was paid on XX/XX/XXXX and {$1200.00}, which is what XXXX in the mortgage department said it would be if the payment was re-evaluated with the {$2000.00} placed back into escrow. I noticed that the payment was lowered to the {$1300.00} amount for spreading the shortage over 36 months. I also noticed that the payment made on XX/XX/XXXX was put into a " suspense '' account and not credited to principal or interest. I contacted Citizens XXXX department again and had them put in the record that I was paying the {$1200.00}, and that if there were any late charges, there would be a problem again. I also let him know that I was filing a claim with the CFPB once I hung up. He said he would have XXXX call me back. XXXX did call me back and stated that there were processes that take time. I told her that all that I wanted was for the money to be replaced, and to pay the normal adjusted payment, which I was told was {$1200.00}, and for the money that was placed in the " suspense '' account to be credited to principal, interest like it should be. She said that I would have to contact the mortgage department. I told her that I was not willing to sit on hold for another two and a half hours, and that I was done. She acknowledged that they get busy later in the morning. I let her know that Citizens had screwed up at least four times, and I don't see any progress in getting my money back into the account. I don't care about their processes, because they are the ones who screwed up four times ( e.g. sending the check late, not issuing a stop payment multiple times ). Neither I nor my son, had any contact with the check, and if there was any dispute, it should have been between XXXX XXXX XXXX and Citizens, since they are the ones who botched this. I also let her know that I was filing a claim.