Consumer complaint received 2024-04-05 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Fees charged
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: OK

Complaint narrative:
Dear Sir/Madam, I am writing to file a formal complaint against Bank of America regarding the mishandling of my mortgage payments and the unjust imposition of late fees, despite payments being made on time. As a veteran with a XXXX, it is of utmost importance to me to maintain my financial obligations, and I am deeply troubled by the events that have unfolded. 
Account Details : Account Number : XXXX I have been a responsible customer with Bank of America, holding multiple mortgages with them and other financial institutions without any history of late payments or escrow deficits. However, a recent series of events has led to significant distress and financial implications for me. 
Timeline and Summary of Events : Exhibit A : In XX/XX/XXXX, Bank of America conducted an escrow analysis and determined an increase in my escrow payment, effective from XX/XX/XXXX. Despite my monthly payments being consistently made, Bank of America erroneously placed my XXXX payment into a holding account, incorrectly citing late charges. This action initiated a cycle of unjustified late fees, persisting until XX/XX/XXXX, despite my continuous efforts to rectify the situation through written correspondence and emails. 
Exhibit B : A letter from Bank of America dated XX/XX/XXXX, attempted to justify the mishandling of payments by referencing a clause from a note signed in XX/XX/XXXX. However, Paragraph 3 of said note clearly outlines my monthly payment obligations, with no mention of escrow, indicating that late charges only apply to principal and interest payments. 
Exhibit C : Further examination of the mortgage agreement ( Exhibit D ) reveals that the lender is explicitly prohibited from charging the borrower for holding and applying funds ( escrow ). Despite fulfilling my payment obligations diligently for many years, Bank of America chose to impose late fees based on projections of future escrow shortages, without any evidence of current deficiencies. 
Exhibit E : Despite Bank of America acknowledging my tax exemption status in a letter dated XX/XX/XXXX, and issuing an escrow overage refund check on XX/XX/XXXX, they failed to reverse the unjust charges or correct the reporting of late payments to credit agencies, resulting in a detrimental impact on my credit score. 
In light of the aforementioned events, I request that the Better Business Bureau investigate this matter thoroughly and compel Bank of America to : 1. Reverse all unjust late fees imposed on my account. 
2. Correct the reporting of late payments to credit agencies.

3. Provide compensation for any damages incurred, including the negative impact on my credit score. 
4. Implement measures to prevent similar incidents in the future and ensure compliance with regulatory standards. 
I have attached relevant documents ( Exhibits A-E ) for your reference and urge you to take swift action in resolving this issue. Your intervention is crucial in restoring my faith in fair and ethical banking practices. 
Thank you for your attention to this matter. I look forward to a prompt resolution and your assistance in achieving a satisfactory outcome. 
Sincerely,

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