Consumer complaint received 2016-10-04
Product: Mortgage — Conventional fixed mortgage
Issue: Loan servicing, payments, escrow account — 
Company: CITIZENS FINANCIAL GROUP, INC. (NY)

Re : Citizens One Home Loans I have attempted to resolve a dispute with Citizens One Home Loans ( " Citizens '' ) to no avail. Here 's the background of the dispute. We had an outstanding mortgage loan balance of {$30000.00} which we sent a check in XXXX that Citizens cashed on XXXX XXXX, 2016. I did n't realize that there was interest charge in arrears which would have been from XXXX XXXX through XXXX XXXX. I ultimately agreed with interest charge for this period. The dispute involves Citizens trying to charge me interest on the full amount of {$30000.00} subsequent Citizens cashing my check on XXXX XXXX, 2016. Below is a list of activities that occurred : I called Citizens on XXXX/XXXX/16 to resolve the variance in dispute. The Service Representative said she would research the issue and call me back the next day with the correct payoff amount. I would have made the payment over the phone. 

I did n't receive a return call and therefore spoke to another customer representative on XXXX/XXXX/16 who stated that they did n't apply the check to the outstanding principal which violates Citizens policy which is " Additional funds received, if not specified, will be applied first to outstanding fees then to your principal. '' See Citizens document attached to my letter dated XXXX XXXX, 2016. I stated that they should not charge interest past XXXX/XXXX/16. The rep indicated that 's the way they calculate interest. When I pushed back on the legality of this practice, the rep merely stated - we will continue to charge full daily interest of {$4.00} until the minor outstanding balance was received. 

I was then referred to the Office XXXX and tried numerous times to call the office to resolve the dispute without a return call. Therefore, I calculated the correct interest amount and remitted a cashier check in the amount of {$180.00} along with the attached letter. I also asked numerous times for a copy of regulations that allow interest to be charged on paid off debt. Of course, they have not sent that yet. 

Citizens in the meantime returned my check of {$30000.00}. Citizens then proceeded to have their collection department call me to collect on the delinquent payment and added another 30 days of interest to my bill. I was also informed that my {$180.00} check was being sent back. 

On XXXX XXXX, 2016, I made the full payment request of {$30000.00} in protest requesting that the excess interest charges be remitted back to me. Attached is the letter I included with the payment in protest. I strongly believe I should n't be penalized with additional interest and strong arm collection efforts, for Citizens inability to correctly apply my original check to my outstanding balance. 

I then received a notice today ( XXXX/XXXX/16 ) that my loan was in default for lack of payments for XXXX and XXXX. 

I do n't believe Citizens practice is in conformance with regulations and it probably violates debt laws. I am requesting that your office investigate Citizens practice they have subjected me to and determine the appropriateness of the practice. Furthermore, an investigation should be conducted of other early paid off loans to determine if other consumers overpaid interest. 

I have an excellent credit rating and do n't want Citizens to mess it up. I have never worked so hard to pay off debt. I am happy to discuss the specifics of the dispute with your office. Feel free to call me at XXXX.