Consumer complaint received 2025-06-04 00:00:00
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — Payment process
Company: BSI Financial Holdings, Inc.
State: LA

Complaint narrative:
Subject : Formal Complaint Against BSI Financial Services Mishandling of Mortgage Account, Improper Charges, and Credit Reporting Errors Dear Consumer Financial Protection Bureau, I am writing to file a formal complaint against BSI Financial Services regarding ongoing and unresolved issues related to the servicing of my mortgage account. These issues have persisted for over two years and have caused significant financial and emotional distress, as well as serious damage to my credit profile. 

Background : I have made my mortgage payments on time every month. However, a serious and previously undisclosed issue was recently discovered. After nearly a year of raising concerns with BSI, a representative named XXXX XXXX finally conducted a meaningful review of my account and discovered the following : * Escrow Payment Increase Without Notification : After nine years of making the same monthly mortgage payment, my escrow changed, resulting in a higher monthly payment. I was never notified of this change. 
* Incorrect Placement in Bankruptcy Department : BSI erroneously categorized my loan account under the bankruptcy department. I was not in bankruptcy, nor had I been for several years prior to BSI acquiring my loan from XXXXXXXX XXXX XXXX 
* As a result, the increase in escrow was never communicated to me, and while I continued making consistent monthly payments, the full amount was not being credited. Instead, BSI was placing my payments in a suspense account until two payments equaled the full, increased amountthus reporting me as being behind when I was not. 

Additional Issues : 1. Payment Plan Misrepresentation : Under threat of foreclosure due to BSIs misclassification and erroneous shortage reporting, I agreed to a payment plan. I completed this plan in full as of XX/XX/XXXX 
2. Unjustified Charges : Upon checking my account after plan completion, I was shocked to find a new charge of {$810.00}. I was told these fees stem from : * Bankruptcy-related charges ( despite not being in bankruptcy ), * Property inspection fees resulting from BSIs incorrect reporting of my account as delinquent. 
3. Contradiction and Miscommunication : I was informed previously that all fees would be included in the payment plan and that no late fees or additional charges would accrue while on the plan. These assurances have not been honored. 
4. Failure to Correct Credit Reporting : BSI has continually reported my mortgage as delinquent to credit bureaus, damaging my credit, despite being informed that the reporting would be corrected.

5. Refusal to Provide Documentation : I have requested a copy of the completed payment agreement, which has inexplicably disappeared from my account records. My request for a copy has been denied.

Summary of My Complaint : * BSI failed to properly notify me of payment increases. 
* They inaccurately placed my account in bankruptcy status. 
* They misapplied payments and falsely reported delinquencies. 
* They threatened foreclosure despite on-time payments. 
* They added unjustified fees and failed to remove them after multiple assurances. 
* They damaged my credit through repeated misreporting. 
* They refused to provide critical documentation regarding the payment agreement. 

This matter is deeply troubling and appears to involve negligence, deceptive servicing practices, and potential mortgage servicing fraud. I respectfully urge the CFPB to investigate thoroughly and advocate on my behalf. 

Thank you for your attention to this matter.

Company response to consumer: Closed with explanation