Consumer complaint received 2024-02-07
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Trouble during payment process — Payment process
Company: WEBSTER BANK, NATIONAL ASSOCIATION (MA)

I continue having problems with Webster 's payment processing for my home equity account. I pay {$1000.00} per month, every single month, for this home equity loan with a payment due of around {$650.00} or so. Because of past problems with properly crediting the account, instead of making two {$500.00} payments during the month, I now make one payment of {$700.00} mid month and one payment of {$300.00} at the beginning of the month. In XXXX, I punched into my XXXX XXXX  XXXX bill payment account that Webster should be paid by XX/XX/XXXX the sum of {$700.00}. XXXX XXXX XXXXXXXX has confirmed that it cut the check to Webster on XX/XX/XXXX and sent it out, with instructions that it was good on XX/XX/XXXX. Apparently it sat in their shop until XX/XX/XXXX before it was credited to my account and put through for payment. I am getting a copy of the check now from the bank but it will take a week, but they confirmed they cut the check and sent it on XX/XX/XXXX, and Webster cashed it on XX/XX/XXXX. 
1. Doesnt every home equity loan have a grace period before the bank charges a late fee? Webster charged the late fee on XX/XX/XXXX when the due date was XX/XX/XXXX. WHERE IS THE 10 DAY GRACE PERIOD? 
XXXX. I paid the bank timely what more can I do? XXXX XXXX XXXX cut and sent the check on XX/XX/XXXX. Webster didnt cash it until XX/XX/XXXX. There isnt a lot I can do. The money actually DID come out of my account on XX/XX/XXXX, and I can show that. So the money went to Webster in plenty of time. It doesn't take XXXX weeks for the mail to work. 
XXXX. Your customer service rep refused to waive the {$32.00} late fee because I had a late fee reversed last XXXX. THAT WAS BECAUSE YOU MISAPPLIED MY MONEY BACK THEN I have been paying {$1000.00} every month for a long time and then was paying in XXXX equal payments of {$500.00} and you misapplied the money so that you made me delinquent despite my extreme overpayment. You waived that fee. WHY should that count against me now? 
XXXX. I am asking you to waive this {$32.00} late fee as I did everything to continue to pay you {$1000.00} a month for a {$650.00} or so payment. I paid {$700.00} on XX/XX/XXXX via a check mailed to you on XX/XX/XXXX. Neither XXXX XXXX XXXXXXXX nor I know why you didnt cash it until XX/XX/XXXX. I must assume it does NOT take XXXX weeks to get to you. I must assume you just did not apply it. And isnt there supposed to be a grace period of at least 10 days BEFORE you assess a late fee? If the payment due date was XX/XX/XXXX, why was I charged a late fee on XX/XX/XXXX which is only 4 days later? Its one thing to say its delinquent, but late fee charges on home secured loans have grace periods and they are more than 4 days! 

I am asking Webster to waive this {$32.00} late fee and to investigate why it takes so long to apply payments. I am asking where the grace period for a mortgage is here. I am asking why your customer service reps when confronted with all the facts above still refuse to waive this late fee saying you had one almost a year ago and we only do one a year when clearly this isn't my fault. Their systems are severely problematic as somehow payments arent received despite being sent 2 weeks earlier!!! And the money came out of my checking account 8 days PRIOR to the date they claimed to have received it. I have and continue to pay {$1000.00} a month for this loan that requires far less. I should NOT be getting late fees here.