Consumer complaint received 2019-04-25
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: CITIZENS FINANCIAL GROUP, INC. (ID)

Franklin American Mortgage Company ( FAMC ) is inappropriately handling our mortgage escrow account in two ( 2 ) respects : ( 1 ) wrongful withdrawal and wrongful retention of a loan installment and ( 2 ) wrongful retention of our escrow funds, both occurring after our mortgage loan was fully paid. 

FAMC acted wrongfully and likely illegally. FAMC misled us by making untrue representations and has violated its fiduciary duties owed to us as its customers with respect to our escrow funds and money wrongfully withdrawn from our daughters bank account. 

Our daughter lived in and owned ( with us to ensure successful financing ) a XXXX condo. FAMC held the mortgage on the condo until the condo was sold and the mortgage loan paid in full on XX/XX/2019 ( the payoff date is reflected on FAMCs records ). 

A. Wrongful withdrawal of installment after loan fully paid. 
Despite the payoff, FAMC withdrew {$1200.00} from our daughters checking account on XX/XX/2019 by means of an automatic withdrawal to pay the next installment which of course was not and is not owed. Our daughter has not yet been reimbursed for that wrongful withdrawal. We have spoken with several mortgage service individuals, not all of whom have been truthful. Reading online consumer complaints against FAMC, we believe this is yet another in a series of illegal acts and thus part of an ongoing illegal pattern or practice of holding money of others as long as possible to the benefit of FAMC and to the detriment of consumers such as us. 

Upon learning of the wrongful XX/XX/XXXX withdrawal, we called FAMC XX/XX/2019 and were told a check would be promptly issued and mailed to our daughter. That statement was not true. No check for that wrongfully withdrawn amount was issued or mailed. 
On XX/XX/2019 : 1 ) We called again and spoke with XXXX ( badge # XXXX ), who said the check had been issued and mailed ( which was not true - we learned last week that a {$1200.00} check was prepared on XX/XX/XXXX and would be mailed XX/XX/2019 ). 
2 ) XXXX said that because we had not received the ( nonexistent ) {$1200.00} check, FAMC would issue a stop payment order on the check, re-issue it and we should expect to receive the new check around XX/XX/XXXX-XX/XX/XXXX. That statement was not true. 
3 ) Our daughter updated her mailing address with FAMC and her mail is still being forwarded, so an address change is not an issue. 

On XX/XX/2019, we called again because we had not received the {$1200.00} check. 
We were told : 1. Due to our call on XX/XX/XXXX, the reimbursement check for FAMCs wrongful withdrawal ( {$1200.00} ) was never mailed, but instead that amount was returned to escrow. That statement was not true. 
2. It would take two ( 2 ) business days to issue a check and it would be over-nighted no later than XX/XX/XXXX, so we could expect it by XX/XX/XXXX. That statement was not true. 

On XX/XX/2019, we called and spoke with XXXX. According to XXXX, the reimbursement check for FAMCs wrongful withdrawal ( {$1200.00} ) was still pending and should be issued/mailed by Saturday XX/XX/XXXX. He checked account file notes and reported there were none about over-nighting this check. He suggested we call back on XX/XX/XXXX ( a Saturday ) to obtain the tracking number for the reimbursement check to be mailed XX/XX/XXXX. XXXX asked that the mail department rush the check, but he could not promise his request would be granted. 
We called XX/XX/XXXX and spoke with XXXX. The reimbursement check for your wrongful withdrawal ( {$1200.00} ) was allegedly issued and mailed XX/XX/2019. We are impatiently awaiting its receipt ( not received as of XX/XX/XXXX ).

B. Wrongful retention of escrow funds. 
Our escrow account balance after the loan was paid off equaled {$1300.00}. That balance ( our money ) should have been released to us immediately. FAMC is still wrongfully holding those funds as well. 
On XX/XX/2019, XXXX ( see above ) told us a check for the escrow balance ( {$1300.00} ) had already been mailed on XX/XX/XXXX. All of our daughters mail has been forwarded to her, with the mysterious exception of the alleged FAMC mail allegedly containing the escrow account balance check. 
During the XX/XX/XXXX telephone conversation noted above, we were told the remaining escrow balance check ( {$1300.00} ) mailed on XX/XX/XXXX was not truly late because it takes up to 5 business days for an FAMC check to be placed in the mail and from that point it could take up to 10 business days to arrive through the mail ( 15 business days = 3 weeks ). 
Service representative XXXX had no explanation why we had not received the escrow balance of {$1300.00}. XXXX reiterated it had been mailed on XX/XX/2019 and gave us the checks number allegedly, XXXX. XXXX offered to stop payment on that check and re-issue it. We decided to wait through the week because of the allegedly and abysmally slow FAMC mail process and because we did not want to wait another month to receive this check. Neither check has been received. 
As noted above, we called XX/XX/XXXX and spoke with service representative XXXX. She represented that XXXX will not even issue a stop payment order on the allegedly issued and allegedly mailed check # XXXX for {$1300.00} until XX/XX/2019 and that the check will be expedited for issuance, meaning it may be mailed in early XX/XX/XXXX! 
FAMCs actions are an excellent example of how a fiduciary is NOT to handle anothers money. 
FAMC inappropriately removed money from our daughters bank account after the loan had been paid in full. FAMC has inappropriately retained ( and is today still inappropriately retaining ) our escrow funds. Considering online complaints about FAMCs practices, we suspect this is being done intentionally and on a system-wide basis, thus constituting a pattern or practice of deception designed to make far more money for FAMC than any single customer can likely recover from FAMC. Has FAMC taken a page or two from XXXX XXXX playbook? Shame on FAMC. It knows better and certainly can do better.