Consumer complaint received 2026-04-29 00:00:00
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Incorrect information on your report — Account status incorrect
Company: FIRST HAWAIIAN, INC.
State: VA

Complaint narrative:
Re : FHB Servicing Errors and Violations ( False Balance on Closed and Paid Off HELOC ) This letter constitutes a formal Notice of Errors and Violations by FIRST HAWAIIAN BANK under 12 C.F.R. 1024.35 regarding the servicing, payoff, and subsequent handling of my HELOC Summary Borrower refinanced his home with XXXX XXXX. The existing HELOC with First Hawaiian Bank was Paid Off and Closed as part of the refinancing. First Hawaiian Bank ( FHB ) issues a Payoff Statement requiring {$200000.00} to pay off and close the HELOC. XXXX XXXX XXXX XXXX XXXX wires {$200000.00} to FHB, ( matching the amount in FHBs Payoff Statement ) and Closed Escrow on the refinance. FHB provides written confirmation to Borrower that the HELOC was Paid-Off and Closed FHB Re-Opens the Paid-Off and Closed HELOC and applies an Unsupported, False Balance without providing any reason for its actions, without providing documentation, and without Notice to Borrower. Any alleged shortage was never disclosed by FHB. FHB reports inaccurate information to the credit bureaus based on the False Balance that it applied to the improperly Re-Opened HELOC FHB improperly charged interest to the Borrower for months based on the False Balance FHB improperly withdrew funds from Borrowers bank account to pay improper interest charges, without authorization of the account holder and without notice to account holder To date, FHB has failed to provide any documentation supporting its position, has failed to take any corrective action despite multiple requests and notification that its actions constitute a violation of the law and are causing financial harm to the Borrower 1. Payoff Statement and Escrow Closing On XX/XX/XXXX, First Hawaiian Bank ( FHB ) issued a written HELOC Payoff Statement : indicating : TOTAL PAYOFF : {$200000.00}. On XX/XX/XXXX, XXXX XXXX XXXX XXXX XXXXXXXX XXXX XXXX ( XXXX XXXX ) closed escrow on my refinance and wired {$200000.00} to FHB, exactly matching the amount demanded by FHB. On XX/XX/XXXX, XXXX XXXX issued a written confirmation stating : XXXX XXXX XXXX wired {$200000.00} to FHB which was precisely the amount demanded and did so pursuant to and in reliance upon the Payoff Statement. My Borrowers Settlement Statement likewise reflects a Loan Payoff to First Hawaiian Bank in the amount of {$200000.00}. The HELOC Account History shows Principle Payments equaling the amount of the account balance owing prior to HELOC closure. Evidencing the loan was paid in full Any alleged shortage was never disclosed by FHB. To Date, no documentation in support of any alleged shortage has been provided by FHB. 2. FHB Provides Written Confirmation that the HELOC was Paid Off and Closed XX/XX/XXXX In response to my email requesting : Kindly confirm that the HELOC was Paid Off and Closed, two FHB employees confirmed in writing that the HELOC was Paid Off and Closed, as follows : XX/XX/XXXX FHB Confirmation # 1 : From : XXXX XXXX ( XXXX ) I see it is showing as closed in our system. SCREENSHOT ATTACHED SHOWING {$0.00} BALANCE XX/XX/XXXX FHB Confirmation # 2 : From : XXXX XXXX ( XXXX ) Your HELOC was paid off and closed XX/XX/XXXX. On XX/XX/XXXX, the HELOC was no longer visible on my FHB online banking dashboard when I signed in to my online FHB account 3. FHB Re-Opened the CLOSED and PAID-OFF HELOC and Applied a False Balance to the Account Despite confirming, in writing, that the HELOC was PAID-OFF and CLOSED : On XX/XX/XXXX, FHB Re-Opened the Closed and Paid-Off HELOC and Applied an Unsupported, False Balance to the Account Subsequent Account Details ( attached ) show : Total Outstanding False Balance : {$9000.00} Total Credit Line Improperly Reported : {$9000.00} Interest YTD : {$7500.00} ( as of XX/XX/XXXX ) The outstanding balance is not legitimate and exists solely because FHB, in violation of RESPA and FCRA, wrongfully applied an Undocumented , False Balance to a Closed and Paid Off HELOC 4. Wrongful Interest Charges Applied and Automatic Payments Drafted by FHB FHB improperly charged Interest on the Undocumented, False Balance FHB, without the Approval of or Notice to the Account Holder, initiated automatic withdrawals from my bank account to pay the wrongful interest charges on the False Balance Using FHBs own Account Details and transaction history : A. Wrongful Interest Interest YTD before payoff ( XX/XX/XXXX ) : {$6500.00} Interest YTD after payoff ( XX/XX/XXXX ) : {$7500.00} Wrongful Interest charged after payoff : {$1000.00} B. Wrongful Automatic Withdrawals FHB withdrew automatic payments to satisfy interest charges applied to the false balance, without Notice, Documentation, or Borrower Authorization : {$1000.00} in interest {$1100.00} in improperly drafted payments Total wrongful charges through XX/XX/XXXX : {$2200.00} These charges were taken after the loan was paid off and after FHB confirmed the account was closed. 5. FHB Reported Inaccurate Information to Credit Bureaus FHB Improperly Reported : a {$10000.00} balance on a closed and paid off HELOC Credit Line Suspended an active HELOC account This inaccurate reporting has harmed my credit profile and is currently impeding my ability to refinance. 6. Communications And Failed Resolution 6.1 Emails to FHB Requesting Correction Multiple attempts to resolve the issue by Borrower FHB ignored or failed to respond to Borrower No correction made despite documentation proving HELOC payoff and closure Calls not returned ; questions unanswered by FHB 6.2 Evidence of Non Response by FHB Employees who confirmed closure did not resolve the error No explanation provided for payoff reversal To date, FHB has provided no documentation supporting its actions In three separate emails spanning multiple months ( XX/XX/XXXX ; XX/XX/XXXX ; XX/XX/XXXX ), FHB claimed to be still investigating the matter. No findings were ever communicated, and no corrective action was taken. Despite repeated outreach and documentation, FHB did not correct the False Balance, stop wrongful charges or take any other corrective action 7. Harm and Potential Additional Damages FHBs errors have caused and are causing ongoing harm, including but not limited to : Wrongful withdrawals and wrongful interest charges Improper charges for interest, fees, and minimum payments on a loan that was paid off and closed ; Wrongful negative credit reporting. The appearance of an outstanding balance and adverse comments on Borrowers credit reports ; Ongoing Harm to Refinancing : I am currently in the process of applying for a refinance loan. FHBs Errors and Violations are causing continual and ongoing financial harm, including, without limitation, delaying underwriting, threatening my interest rate and loan eligibility, jeopardizing closing and interfereing with my ability to obtain a new refinance loan on optimal terms. If FHBs errors and/or its failure to promptly correct such errors results in any adverse impact to my pending refinance, including, but not limited to, rate increases, loan denial, or closing delays I will consider such harm to be a direct result of FHBs servicing errors and violations and its failure to resolve said issues in a timely manner. This shall serve as notice that I reserve all rights and remedies available under federal and state law. 8. Errors Asserted Under 12 C.F.R. 1024.35 I assert the following documented Servicing Errors and Violations by FHB : 1. Failure to Provide Required Written Notice of Significant Account Changes Regulation Z 12 C.F.R. 1026.9 ( c ) ( 1 ) ( i ) Requires written notice before a creditor makes a significant change to a home secured credit account. FHB Violations : Reopened the HELOC Added a {$10000.00} balance Reversed the payoff Resumed interest and withdrawals Reported the account as active No written notice was provided. This is a direct violation. 2. Failure to Provide Adverse Action Notice ECOA / Regulation B 12 C.F.R. 1002.9 Requires written notice when a creditor : Suspends a credit line Changes terms Reports adverse information FHB Violation : FHB reported the HELOC as active with Credit Line Suspended without issuing an adverse action notice. 3. Failure to Provide Notice Before Furnishing Negative Credit Information Fair Credit Reporting Act ( FCRA ) 15 U.S.C. 1681s 2 ( a ) ( 7 ) Requires notice to the consumer before furnishing negative information to credit bureaus. FHB Violation : Reported the HELOC as active with derogatory status without notifying the borrower. 4. Failure to Provide Documentation Supporting Claimed Indebtedness RESPA 12 U.S.C. 2605 ( e ) Requires servicers to provide documentation supporting their position when a borrower disputes an account. FHB Violation : FHB has not produced any documentation supporting its claim that {$10000.00} is owed. 5. Unfair or Deceptive Acts or Practices ( UDAP ) HRS 480 2 Prohibits unfair or deceptive acts in commerce. FHB Violations : Reopening a paid off HELOC Adding an unsupported balance Failing to notify the borrower Failing to provide documentation Continuing to charge interest Reporting inaccurate information Each of these is independently unfair and deceptive. 6. Failure to Maintain Accurate Account Records RESPA 12 U.S.C. 2605 ( k ) ( 1 ) ( C ) Regulation X 12 C.F.R. 1024.38 ( a ) Servicers must maintain accurate and complete account information. FHB Violation : Created an erroneous balance of {$10000.00} after payoff. 7. Wrongful Assessment of Fees and Interest Regulation X 12 C.F.R. 1024.35 ( b ) ( 5 ) Prohibits charging fees or interest not permitted by the loan. FHB Violation : Charged {$2200.00} in interest and withdrawals after the loan was paid off. 8. Failure to Apply Payoff Properly Regulation Z 12 C.F.R. 1026.36 ( c ) ( 3 ) Requires lenders to accept a payoff statement amount as full satisfaction of the loan once the borrower tenders that amount. Violation : FHB reversed the payoff after confirming the loan was paid in full. 9. Failure to Correct Servicing Errors Regulation X 12 C.F.R. 1024.35 ( b ) ( 1 ), ( b ) ( 3 ), ( b ) ( 5 ), ( b ) ( 11 ) Defines servicing errors including : Failure to apply payments correctly Imposing charges not permitted by the loan Providing inaccurate information Failing to respond to borrower inquiries Violation : FHBs payoff reversal and post payoff charges fall squarely within these categories. 10. Failure to Comply with Hawaii Mortgage Servicer Requirements HRS 454F 4 Requires servicers to : Apply payments accurately Maintain truthful records Conduct servicing in a fair and honest manner Violation : FHBs reversal of a valid payoff and creation of an erroneous balance violates these duties. 11. Failure to Provide Notice of HELOC Suspension or Adverse Action Regulation B ( ECOA ) 12 C.F.R. 1002.9 Requires written notice when a creditor takes adverse action on a credit line. Violation : FHB reported Credit Line Suspended without issuing an adverse action notice. 12. Improper Withdrawal of Funds Without Authorization or Notice Electronic Fund Transfer Act ( EFTA ) 15 U.S.C. 1693e ( a ) requires that electronic fund transfers be authorized in writing by the account holder and that the consumer receive notice of such transactions. Regulation X 12 C.F.R. 1024.35 ( b ) ( 6 ) and ( b ) ( 10 ) defines servicing errors including failure to properly apply payments and imposing charges not permitted by the loan agreement. Consumer Financial Protection Act ( UDAAP ) 12 U.S.C. 5531 & 5536 prohibits unfair, deceptive, or abusive acts or practices in connection with consumer financial products. Truth in Lending Act ( TILA ) Regulation Z 1026.9 ( c ) requires written notice of any new charges or changes in account terms. FHB Violations : Initiated unauthorized electronic withdrawals from borrowers account to pay interest on a false balance. Failed to obtain account holder written authorization or provide notice of withdrawals. Assessed interest on a non existent debt after payoff confirmation. Misrepresented the existence of a valid balance and treated it as collectible debt. Failed to correct the error despite borrowers repeated notifications. Each withdrawal constitutes an unauthorized electronic fund transfer and a servicing error under 12C.F.R.1024.35 ( b ) ( 6 ) and ( b ) ( 10 ), as well as violations of EFTA, TILA , and UDAAP. 11. Preservation of Rights, Notice of Non-Waiver This Notice of Errors and Violations is submitted pursuant to 12 C.F.R. 1024.35. Please treat it as such and respond within the timeframes required by law. Nothing in this letter should be construed as a waiver of any rights, claims, or remedies I may have against FHB, and I expressly reserve all rights and remedies under applicable federal and state law. 12. Attachments and Supporting Documentation Attached, please find the following documents : 1.1 FHB Payoff Statement ( XX/XX/XXXX ) Payoff amount demanded : {$200000.00} Issued by FHB Consumer Credit Service Center. 1.2 Borrowers Settlement Statement ( XX/XX/XXXX ) Shows {$200000.00} wired to FHB by XXXX XXXX XXXX. Confirms payoff was funded exactly as demanded. XXXX Old XXXX Title Payoff Letter ( XX/XX/XXXX ) XXXX Wire Confirmation ( XX/XX/XXXX ) Confirms XXXX XXXX wired the exact payoff amount demanded. XXXX Old XXXX Title Payoff Confirmation Letter ( XX/XX/XXXX ) Confirms XXXX XXXX wired the exact payoff amount demanded. States any alleged shortage was not disclosed by FHB. 1.6 FHB CONFIRMATIONS OF PAYOFF & CLOSURE 1 Email from FHB Loan Officer ( XX/XX/XXXX ) Your HELOC was paid off and closed XX/XX/XXXX. 2 Email from FHB Personal Banking Officer ( XX/XX/XXXX ) I do see it is showing as closed in our system. These emails confirm the loan was closed in FHBs system. 1.7 FHB ACCOUNT HISTORY SHOWING PAYOFF REVERSAL Shows Principle Payments demonstating HELOC Paid in Full XX/XX/XXXX Payment {$82000.00} XX/XX/XXXX Payment {$9000.00} XX/XX/XXXX Payment {$200000.00} Shows the following critical entries : XX/XX/XXXX Regular Payoff + {$200000.00} XX/XX/XXXX Reversal {$200000.00} 1.8 FHB XXXX Account Balance Shows an Account Balance equal to the Payoff Statement 1.9 Email from Refinancing Lender ( XXXX XXXX ) Shows financial harm caused by FHB improper credit reporting, Re-Opening the Closed and Paid HELOC and Application of a False Balance on reopened HELOC

Company response to consumer: Closed with monetary relief