Consumer complaint received 2019-01-05
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — 
Company: JPMORGAN CHASE & CO. (CA)

On XX/XX/2019, I submitted an online payment of {$380.00} for the remaining principal on my mortgage loan. Instead of immediately paying down my principal to {$0.00}, Chase, put my payment into " unapplied '' status, which the company describes as : " Depending on your payment plan or account terms, your payment may be held in an 'unapplied ' status until it can be applied appropriately to your account or we receive the full payment amount. '' On XX/XX/2019, I called the company to ask what I needed to do to fully close out my account. The representative quoted me a payoff amount of {$470.00}, which included {$380.00} plus accrued interest of {$0.00} for the period of XX/XX/XXXX to XX/XX/XXXX ( note : the accrued interest included a day for which my balance should have been {$0.00} ) plus a {$92.00} " loan fee ''. In other words, by holding the amount I had transferred hostage, the bank was essentially charging interest on funds earmarked to pay down debt on XX/XX/XXXX, while simultaneously making additional interest on the amount I had sent them to pay down my principal in the " unapplied '' account. 

While annoying, I was happy to pay an extra {$0.00} of interest on a XXXX   balance if Chase would simply allow me to pay this remaining {$92.00}. The representative on the phone said that would be fine, but that I could only pay through 3 means : 1 ) wiring the funds to the bank ; 2 ) sending a check in the mail ; or 3 ) going to a branch and settling the final amount in person. While it was highly inconvenient, I decided to go to a branch on the same day just to close out the loan. 

When I went to a branch, the employees were all very nice and helpful, but had to interface with less than helpful mortgage employees over the phone. I was told that my balance was still {$380.00}, and that I had had to pay the full {$470.00} in order to close it out. Then the bank would refund me with a check in the mail for the {$380.00} that I had already paid. Of course, during the period, the bank would earn interest on the double charge ( I would effectively be paying my remaining principal twice ) while it took its sweet time getting the money back to me -- thereby earning even more interest. So I asked why I couldn't just pay the difference of {$92.00}. The mortgage representative said if I did, the account still wouldn't close out because the {$380.00} had not yet been applied to the principal. 

The mortgage employee told me to wait and see if it posted on Saturday. If it didn't, they told me my payoff quote would continue to increase by {$0.00} a day from the accrued interest on my mortgage ( on an effective principal amount left on my account of {$0.00} if the bank had just applied the money to my remaining balance on the date I paid it ). Meanwhile, the exact amount of my remaining principal sits in an unapplied account at Chase where it earns interest for them and they charge me additional interest on the mortgage principal ( i.e., double-dipping ). 

I fully acknowledge that the amounts here are extremely small, but it infuriates me that Chase is effectively holding my money hostage so it can steal additional interest over the interim. Do this to one person, it's a glitch ; do it to millions, it's a business strategy. 

I am a XXXX XXXX and XXXX veteran. I know the game Chase is playing -- using procedural gimmicks to earn interest on cash it doesn't own -- and it is revolting. If they are doing something like this to me, they are likely doing this and worse to millions of others as well -- the victims likely just don't realize it.