Consumer complaint received 2023-01-04 00:00:00
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — 
Company: PNC Bank N.A.
State: PA

Complaint narrative:
I have had my mortgage with PNC since XXXX and have consistently made my monthly payments and until XXXX of XXXX PNC has consistently paid my taxes to the City of XXXX. 

The City of XXXX ( hereinafter " City '' ) XXXX taxes were due on XX/XX/XXXX. 

PNC sent payment on XX/XX/XXXX however when the City attempted to process the check on XX/XX/XXXX they discovered that the city put a stop payment on the check and never issued a new one. 

The City sent PNC notices that taxes remained unpaid on XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX of XXXX. 

Neither the City nor PNC altered my husband or I that taxes remained unpaid and neither of us had a reason to doubt the payment since PNC has been handling it for over XXXX ( XXXX ) years. 

PNC ignored said notices and never sent a payment for the XXXX taxes. 

On XX/XX/XXXX I received notice from XXXX XXXX XXXX  that my taxes were delinquent and if not resolved in 30 days they would foreclose on my house. 

I contacted PNC immediately who could not initially tell me what happened, but opened up an escalation complaint in order to resolve within the thirty ( XXXX ) days. 

On XX/XX/XXXX PNC sent a letter to me stating that the first payment they made was to wrong parcel so they had to disburse a second payment and they were in process of getting the erroneous disbursement refunded into my account. Additionally it stated that taxes were current and paid. 

On my XX/XX/XXXX mortgage statement I noticed that my amount due under escrow increased by over two hundred dollars. 

I immediately called PNC who told me they would need to look into it as they can not explain why it went up so high since my taxes only increased by {$80.00}. 

Throughout the months of XXXX, XXXX, and XX/XX/XXXX I was told verbally that it was due to an escrow shortage, however they could not explain to me why it was short. 

On XX/XX/XXXX I received the exact same letter that I got on XX/XX/XXXX that stated two tax payments were made and they would be funding erroneous payment back into my escrow and that is why the escrow was currently short. This never happened. 

I attempted to speak to a live individual at a branch bank but was told that was not possible and I simply had to call customer service. That same day customer service told me they were waiting for City to refund the extra payment and that I could continue paying my normal monthly payment. 

I continued making my payments and PNC originally accepted. However PNC has since returned my checks for the month of XX/XX/XXXX, XX/XX/XXXX and XX/XX/XXXX stating they could only accept full payment. My checks for XXXX, XXXX and XXXX of XXXX were not returned to me. I have not and will not cash said checks. 

I continued throughout XXXX, XXXX and XX/XX/XXXX to resolve the issue with PNC to no avail. 

On XX/XX/XXXX. XXXX I got a letter stating that when PNC ran my escrow analysis in XX/XX/XXXX there was an overage due to a tax refund and they have to dispense it to me under RESPA. This is simply untrue, not only was there not a tax refund, the whole reason there was excess was due to PNC 's failure to pay my XXXX taxes. 

Upon reviewing my records the overage check was cashed on XX/XX/XXXX. Before cashing the check I went to the bank branch asking why I was receiving the refund and they stated they legally had to because my escrow was over the legal limit they could hold under RESPA. There was nothing mentioned regarding the taxes. Nor could they explain to me why there was an overage but stated that it could not be held in my escrow. 

From XX/XX/XXXX till XXXX of XXXX they was never any notice given regarding a shortage. This is due to the fact that PNC failed to pay my XXXX taxes, were given numerous notices and instead of paying the taxes they sent me a check stating it was from a tax refund which is inaccurate. When they finally paid them in XXXX of XXXX, there was not enough money in escrow due to PNC erroneously refunding the monies to me. 

I spoke with the City numerous times and they indicated that one check was sent which PNC put a stop payment on. The City put PNC on notice by providing five bills. PNC for whatever reason chose to ignore the notices and refund the money that was suppose to be for my XXXX taxes. 

While I admit that I received the money, I did my due diligence to assess why I was receiving refund. I was not put on notice that taxes were not paid, as it has been the duty of PNC since XXXX. 

Furthermore, PNC not only stopped payment on my taxes, they ignored XXXX notices before dispensing the overage check to me and two more notice after in XXXX and XXXX of XXXX. And still PNC never paid the taxes. 

PNC finally paid my taxes XXXX of this year due to me putting them on notice that they had not been paid, a notice that I am not legally require to provide as it is their responsibility to pay said taxes. 

Now a year and two months later PNC wants me to replenish the escrow the {$2100.00} even though the reason it is short is due to their breach, negligence and misappropriation of funds. PNC is responsible for incorrectly refunding the escrow, however they are trying to excuse their negligence. First for over five months they stated it was on the City and they were awaiting a refund from them. When I informed them that the City was not processing any sort of refund then they attempt to say it is short due to an overage from a tax refund. There was no tax refund as no taxes were paid. Furthermore when I spoke with PNC I was informed the shortage was {$1700.00} not {$2100.00} I have been trying to resolve this for over 6 months and nothing has been done. 

On XX/XX/XXXX I was sent a default notice that stated I had till XX/XX/XXXX to pay the full amount past due {$2800.00}

Company response to consumer: Closed with explanation