Consumer complaint received 2026-04-20 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Problem making or receiving payments
Company: REGIONS FINANCIAL CORPORATION
State: AR

Complaint narrative:
What happened : I am submitting this complaint regarding Regions Bank ( XXXX XXXX XXXX involving improper loan servicing, inaccurate account records, denial of assistance based on incorrect information, and resulting financial and credit harm. In XX/XX/XXXX, I entered into a loan process with Regions Bank. During that process, I was initially presented with a loan that included a balloon payment, which was not part of the original discussion. I electronically signed this initial loan agreement before discovering that it included a balloon payment that had not been disclosed or explained. After reviewing the terms, I raised this issue with the bank. The bank acknowledged the error and presented a second, corrected loan agreement in XX/XX/XXXX without the balloon payment. I then signed this corrected agreement. As a result, XXXX different loan agreements were signed during this process. I was informed by the XXXX, XXXX branch that the second, corrected loan ( XX/XX/XXXX ) would be the governing agreement. However, the first loan does not appear to have been properly terminated, and it remains unclear which agreement is being used to service my account. This lack of clarity has directly contributed to ongoing errors in how my account has been handled and raises concerns about whether accurate records are being used to make servicing decisions. Following the loan signing in XX/XX/XXXX, issues arose regarding how my loan was serviced, including uncertainty as to which of the signed agreements was being treated as the governing loan. Based on my communications with the bank, I was informed by XXXX XXXX, Regions Bank Vice President, that there was an internal error in Underwriting, involving a specific employee. I was told that the issue had been identified through internal review. I was informed that the employee acknowledged making these changes to the first loan file, and it was in a manner that was inconsistent with Regions Banks policies and procedures. Based on what was explained to me, these actions were taken in response to confusion between the initial and corrected loan agreements, payment due dates, and appear to have been an improper attempt to address or resolve that issue. This raises serious concerns regarding the accuracy of my loan records, the handling of the transition between the XXXX agreements, and whether appropriate procedures were followed in servicing my account. It was explained to me that, rather than properly terminating the initial loan, a deferment was applied internally. I understood that the first loan had been voided and that we were proceeding under the second, corrected loan agreement. As a result, I did not request or authorize any such deferment. This raises additional concerns regarding internal controls, whether account-level actions were taken without proper authorization or oversight, and whether accurate records are being relied upon in servicing my account. My account was subsequently treated as though a deferment had already been applied in XXXX XXXX, which directly prevented me from being eligible for hardship assistance when I later requested it in XX/XX/XXXX. Additionally, given the timing of the loan origination, it is unclear how a deferment could have been validly applied so soon after the loan was executed. This raises further concerns that account-level decisions may have been made based on inaccurate, incomplete, or improperly maintained internal records. This incorrect deferment status had significant consequences. Because my account appeared to be in a different status than expected, my payments were treated as past due, even though the loan had only recently been finalized. This created confusion regarding when payments were actually due. As a result : I was denied hardship assistance in XX/XX/XXXX My account was treated as delinquent Regions Bank exercised a setoff and withdrew {$2000.00} from my personal checking account following my IRS tax refund deposit in XX/XX/XXXX As a result of the inaccurate account status and resulting servicing errors, {$2000.00} was withdrawn from my account through setoff in XX/XX/XXXX following a tax refund deposit. These funds would not have otherwise been taken had my account been handled correctly. While I understand that the loan agreement may allow setoff, this action occurred without meaningful notice or communication and appears to have been based on an account status affected by inaccurate or inconsistent internal records. During my attempts to resolve this issue, I was initially informed by a bank Vice President ( XXXX XXXX ) that he did not have the authority to process a deferment and that I would need to contact the banks customer service line to request XXXX. I followed that instruction and contacted the bank ; however, my request was denied based on the representation that a deferment had already been applied to my account. When I reported this back to XXXX XXXX, he indicated that this information was not correct and stated that he would look into the issue further. It was during this follow-up that I was informed of the underwriting error and the internal handling of the loan file. However, after that conversation, I did not receive any further meaningful response or resolution. Beginning in early XX/XX/XXXX, communication with XXXX XXXX became increasingly limited, and I was unable to obtain a timely follow-up or resolution despite multiple attempts to reach him, which further delayed the resolution of the issues affecting my account. I was also informed that an internal note had been placed on my account regarding this issue. However, the representatives handling my account through the banks customer service channels were unable to see or rely on that information. As a result, the existence of this internal note did not assist in resolving the issue or correcting the inaccurate deferment status applied to my account. Additionally, I was informed that an internal note was made acknowledging an error by bank personnel during the loan process. However, this correction does not appear to have been properly reflected in the system used to make decisions about my account, as I continue to experience the effects of that error. As a direct result of these issues, my credit has been negatively impacted. I have historically maintained a strong payment history and have not had prior issues with delinquency. The inaccurate deferment status and resulting account handling caused my account to be reported in a manner that does not accurately reflect my payment behavior. This has caused measurable harm to my credit profile, and I am requesting that any inaccurate reporting be corrected and that appropriate steps be taken to remediate the impact to my credit. I have made multiple attempts to obtain clarification, including contacting the bank Vice President, XXXX XXXX, but I have not received clear or consistent responses. Overall, I have been unable to obtain a clear explanation of : Which of the signed loan agreements governs my account Whether a deferment was actually applied Why I was denied assistance based on a deferment I did not request Whether acknowledged internal errors were properly corrected Whether accurate account records are being used to service my loan Additional details : I have documentation supporting : XXXX signed loan agreements with materially different terms Communications raising concerns about loan discrepancies Requests for clarification that were not answered Statements indicating an internal error by bank personnel Call Logs Phone Recordings I have XXXX attachments for this CFPB Complaint. This is not an exhaustive list of documentation, and I can provide even more evidence to support my complaint. Notably, the call logs and audio recordings are not attached to this form at this time. I am prepared to provide these materials and other forms of documentation upon request. For clarification, the account number for the loan ends in * XXXX, the personal checking account affected by the setoff ends in * XXXX. The Account Number I provided is my personal checking to allow for quick and easy identification within the company system. Thank you

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation