Consumer complaint received 2024-12-30 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Managing the loan or lease — Billing problem
Company: HUNTINGTON NATIONAL BANK, THE
State: PA

Complaint narrative:
I financed a loan for my commercial cargo van through Huntington Bank in XX/XX/XXXX. A few weeks ago, as I began organizing my end-of-year financial records for my self-employment bookkeeping, I realized that the loan term was for six years / 72 months, with the first payment in XX/XX/XXXX, putting my final payment in XX/XX/XXXX. However, my remaining balance was still showing $ XXXX. While I recall receiving a loan deferral during the pandemic in XXXX, I never received any documentation outlining the terms, and there is nothing available on my online profile in that regard. After nearly five years, I could not remember the specifics, including the duration of the deferral and how it would affect my maturity date.

At the start of my loan, I opted for paperless statements, which meant I never received any paper monthly statements. However, over the past six years, I also never received a single email from Huntington Bank notifying me that my monthly statement was available online for my review. For the first three to four years of my loan, the online statements were inaccessible - links to view them were not clickable. I assume that large banks have systems in place to track user activity on their online platforms, including login times and IP addresses, pages or sections visited within the account and specific actions taken, like downloading statements. My statements were unavailable, and the banks logs can corroborate my claim. After years of these statements being inaccessible, I eventually stopped attempting to check them. It was only a few days ago that I discovered the existence of the most recent monthly statements, yet Huntington Bank never sent me a single email notification about their availability. 

Over the last 6 years, I relied on the banks online interface, which only displayed my total remaining balance and the next payment due, without breaking down how the balance was calculated or how the payments were applied. I used this information to make my monthly payments, assuming that my obligations were being handled accurately. Despite not having access to the monthly statements, I did however receive paper notices from Huntington Bank informing me when my payments were past due. All of the past due paper reminders stated that my past due amount was {$330.00}, late fee {$35.00}, and total amount due {$360.00}. I paid online by clicking on the pre-populated amount of {$360.00} ( notice XXXX cent difference that I never recognized until this month ). At times, it was more feasible to pay the {$35.00} late fee rather than try to come up with an additional {$360.00} for a double payment in a single month given that for the past XXXX years, I have been undergoing XXXXXXXX XXXX I have no family or significant other to assist me, and I am solely responsible for supporting myself and my XXXX child. Due to my medical needs and ongoing XXXX, my income is extremely limited, consisting of part-time self-employment in a limited capacity using this cargo van, along with public assistance. I rely heavily on this cargo van to generate income. Without it, I would have no way to support myself or my child, which would result in catastrophic consequences for my family. Because of the personal challenges, I lost track of some of my financial details. I relied on the past-due notices sent by Huntington Bank to guide me on my payment obligations. Based on those notices, I believed that I might have been late with some payments, but I consistently paid the amounts listed as 'past due, ' including late fees, trusting that these payments would bring my account current. 

On XX/XX/XXXX, I called Huntington Bank to clarify the maturity date of my loan ( given the deferral ) and to understand why my balance appeared much higher than expected. During this conversation, it was confirmed that although I was two weeks late on my payment, I was current on my loan. When I asked to explain the {$6800.00} balance, the representative provided a vague response, stating that it consisted of late fees, consistent underpayments, and therefore significant accrued interest. I questioned this explanation, as I have consistently paid the full requested amounts listed on the banks statements ( {$330.00} monthly payment plus a {$35.00} late fee, totaling {$360.00} ). However, the representative stated that my payments were short / underpaid for " many years, '' leading to interest accumulation, as apparently I was supposed to pay {$360.00} monthly payment plus {$35.00} late fee totaling {$400.00} and that the first {$35.00} always went to late fee, leaving my payment to become a partial payment. I asked her where shes getting the amount of {$360.00} and she said its my standard amount as per the original agreement/ bill of sale and that I shouldve known what my standard payment was instead of relying on Huntingtons written past due notifications. ( I requested an explanation of my balance and last week I received my loan history payment that provides no clear or detailed breakdown. ) The representative advised that the {$6800.00} balance could not be addressed/ can not be explained until after I make my XX/XX/XXXX payment. She explained that my options would then be to either pay the balance in full or refinance it. Neither option is viable for me, as I do not have {$6000.00} and I am unlikely to qualify for a new loan due to my lack of steady income. I also strongly believe that I am not responsible for this remaining balance. 

Last week, when I was actually able to access my online statements for the first time, I realized that the amounts due from the monthly statements and the past due notifications DO NOT MATCH. 

I believe that Huntingtons practices violate the Truth in Lending Act and the Consumer Financial Protection Act, as outlined below : 1. Failure to provide monthly statements or notify me of their availability : I opted for paperless statements but never received email notifications about their availability. For six years, online statements were inaccessible in my account and only became available in XX/XX/XXXX, near the end of my loan term. User activity logs can verify this. Ive also never received any paper statements. The absence of accessible statements constitutes an unfair and deceptive practice under the CFPA. This failure to notify me of statement availability and to ensure regular access to accurate statements is a violation of 15 U.S.C. 1638 ( content of disclosures ) and 12 C.F.R. 1026.41 ( periodic statement requirements ).

2. Incomplete monthly statements : The monthly statements I recently accessed are severely lacking in critical information. They fail to indicate the number of payments made or remaining relative to the loans maturity date, providing no clear timeline for repayment progress. Additionally, they do not offer a breakdown of how payments are applied - such as the amounts allocated to principal, interest, or fees- nor do they disclose the interest accrued over the billing period. It is also unclear how late fees are assessed, applied, or reflected in the total balance. Moreover, the statements fail to reflect any information regarding the loan deferrals I was granted during the pandemic in XXXX and for hardship in XX/XX/XXXX. There is no indication of how these deferrals impacted my loans maturity date, the principal balance, or the interest accrued as a result. The absence of any documentation or terms related to the deferrals exacerbates the lack of transparency, and left me without a clear understanding of my financial obligations or how my account has been managed. This makes it nearly impossible to verify the accuracy of the account or reconcile the remaining balance. The CFPA prohibits UDAAPs. Providing incomplete or vague statements is considered deceptive because it obscures critical loan information. By failing to disclose how payments are applied or how the loan balance is calculated, Huntington Bank engaged in deceptive practices that mislead me about my loan 's status and total obligations.

3. Inconsistent and misleading payment notices : The monthly statements I recently accessed indicate that my " current payment due '' is {$360.00}, plus {$35.00} in late fees. However, " payment past due '' notifications I received over the years consistently showed different amounts, such as {$330.00} plus {$35.00} late fee. The bank verbally claimed that my payments were insufficient because they did not include additional amounts for late fees and accrued interest. However, this was never communicated in writing or reflected in my payment notices. Ive made payments in good faith based on the amounts pre-populated online, but the banks system has potentially penalized me through misclassifications, interest accruals, or improper allocation of payments. The discrepancy between the paper notices and online system shows poor internal coordination and suggests a systemic issue in how payments are processed and tracked. Providing conflicting information about amounts owed violates 12 U.S.C. 5531 ( c ), 5531 ( d ) ( deceptive practices under CFPA ) and 12 C.F.R. 1026.36 ( c ) ( prompt crediting of payments and prohibition on pyramiding late fees under TILA ).

4. Ambiguity around deferred payments and remaining balance : Since I dont have and never received any documentation from Huntington bank in regards to deferrals, I had to rely on what the representative told me on the phone on XX/XX/XXXX. She said I deferred XXXX monthly payments in XXXX, and I deferred an additional payment in XX/XX/XXXX for hardship. These deferrals were granted over the phone, and I never received any written terms or disclosures explaining how they would impact my loan balance or maturity date. I also never signed any documentation related to it. However, when I received my payment history via mail a few days ago, it looks to me that I received 4 months of deferred payments during pandemic. Additionally, there is a five-month gap in my payment history from XXXX to XX/XX/XXXX. These months are marked with the same abbreviation used for the pandemic deferral, but I have no recollection of an additional deferral and the representative I spoke on the phone on XX/XX/XXXX didnt mention anything about this time period. This is also evidence of misleading communication. The deferrals are not reflected in my online account or statements, and I am left uncertain about how they were handled. As a borrower, I should not bear the consequences of the banks failure to document and communicate critical terms. 

The bank now claims I owe a remaining balance of {$6500.00} as of today. However, this amount is unexplained and inconsistent with my understanding of deferred payments and accrued interest. For example, if my deferred payments total approximately {$1400.00} ( four months at {$360.00} per month ), this leaves {$5000.00} unaccounted for. This balance is unsupported and unverifiable without proper documentation. The lack of clear terms for deferrals and the unexplained balance violate 15 U.S.C. 1638 ( a ) ( disclosures of payment terms ) and constitute unfair practices under 12 U.S.C. 5531 ( c ) ( CFPA ). TILA requires creditors to notify borrowers of any changes to loan terms in writing. Huntington changed how they applied my payments or adjusted my balance without notifying me, and I believe they are in violation of federal regulations as no written notice of loan terms changes were ever provided to me.

5. Failure to provide payment allocation transparency : The bank failed to provide an amortization schedule or any breakdown showing how my payments were applied to principal, interest, and fees. When I recently reviewed my payment history, I observed inconsistent allocations of payments, with varying amounts applied to principal and interest without explanation. Though I understand that unfortunately lenders are not required to provide options on how I can manage accrued interest on a monthly basis, under the TILA, lenders are required to disclose how payments are applied ( e.g., how much goes to interest, principal, fees ) and explain how interest is calculated, including any daily interest rates and how late payments affect the loan balance. Huntington Bank failed to do so. Even the monthly statements I recently discovered fail to provide any breakdown. Huntington failed to meet TILAs requirement to communicate payment obligations clearly and to disclose accrued interest anywhere- in monthly statements, past-due notices, or other communications- this violates TILAs requirement for transparency in loan servicing. Lenders are required to accurately reflect the total balance owed and not misrepresent or conceal charges, including accrued interest under the TILA and its implementing regulation, Regulation Z ( 12 CFR Part 1026 ). Specifically : Truth in Lending Act : 15 U.S.C. 1639d ( c ) ( 1 ) : Prohibits creditors from engaging in practices that result in material misrepresentation of loan terms. Regulation Z ( 12 CFR Part 1026 ) : 12 CFR 1026.17 ( c ) : Requires clear and conspicuous disclosure of all finance charges and terms of the loan. The failure to disclose how payments were allocated violates 12 C.F.R. 1026.18 ( s ) ( adjustable payment disclosures under TILA ). 12 CFR 1026.36 ( c ) ( 1 ) ( iii ) : Mandates that creditors provide accurate information about payment obligations, including how payments are applied and any fees or interest accrued. Huntington Banks failure to disclose how payments were applied or how accrued interest was calculated violates 12 CFR 1026.17 ( c ) under TILAs Regulation Z, which requires transparency in disclosing loan terms, charges, and balances. My payment history also includes a " partial payment '' category that is not defined in any statement or agreement. 

XXXX. Systemic errors in payment processing : In the beginning of my loan with Huntington Bank, in XXXX, I consistently made payments of {$370.00} {$400.00}, exceeding the required amount. During a five-month gap in XXXX, I made {$100.00} payments each month, totaling {$300.00}. Despite these additional payments, I have never received any documentation explaining how they were applied to my loan. In XX/XX/XXXX, I made a {$660.00} payment following what appears to be the end of my pandemic deferral period. However, there is no record for the due date of XX/XX/XXXX in the loan transaction history provided by Huntington Bank- it simply does not exist. While all other months show both the due date and corresponding payments, XX/XX/XXXX does not appear at all, raising questions about how my payments during that time were handled or recorded. Starting in XX/XX/XXXX, the records indicate that I was consistently a month behind on payments. However, given the {$660.00} payment, which effectively covered almost XXXX standard monthly payments, I am unsure whether I was truly late going forward or if I made a double payment in advance. I dont know if all late fees going forward were charged in error, as the bank has provided no clear explanation or documentation. The bank also has failed to provide an amortization schedule or any record showing whether these payments were applied to principal, interest, or to advance my loan schedule. My past-due notices state that my loan payment amount is {$330.00} plus a {$35.00} late fee, totaling {$360.00}. However, the banks online payment system pre-populates {$360.00} as the amount due ( XXXX cent difference ). The system seems to be misaligned, treating {$330.00} as the actual amount due for the loan payment, while the {$35.00} is being misclassified as a " partial payment '' instead of a late fee. This discrepancy suggests that the system is applying my {$35.00} late fee incorrectly, treating it as a " partial payment '' rather than a separate fee. Since Ive been consistently paying {$360.00} online ( based on pre-populated amounts ), and the system only expects {$330.00}, the additional amounts might have been misallocated : to interest, without proper disclosure ; to late fees, without reflecting them accurately in your statements. If the additional {$35.00} had been applied to the principal with each payment, it would have directly reduced my loan balance. Over time, this should have resulted in significant savings on interest and a much lower overall balance, not {$6800.00}. 

XXXX. Misclassification of late fees : Given the lack of transparency in the banks statements and the discrepancies in their payment history, I now question whether I was truly late on as many occasions as reported or if my payments were misallocated. This is especially troubling in the light of the {$660.00} payment I made in XX/XX/XXXX which the bank has no record of detailing what it was for. By labeling the {$35.00} as a " partial payment, '' the system fails to clearly indicate whether : the late fee is being applied separately and if the late fee is accruing additional interest. This creates confusion about whether I am overpaying, underpaying, or how my payments are being allocated ( e.g., to principal, interest, or late fees ). This improper handling of my late fees could have contributed to unexplained interest accruals and inflated my remaining balance. The bank 's inconsistent statements and unexplained charges cast doubt on their accuracy, making it reasonable for me to question whether you were ever truly late on payments. The {$35.00} late fees could very well be an error caused by the same system inconsistencies that created other issues, such as misclassifications and unexplained balances. 

XXXX. Unexplained remaining balance : The bank claims that I owe a remaining balance of {$6500.00} as of XX/XX/XXXX, but this amount is unexplained. As of today, I have already paid {$22000.00} which is more than the original loan amount of {$22000.00}, and I believe this remaining balance includes improperly accrued interest and fees resulting from the banks errors. The original agreement/ The Bill of Sale contains a clause that states : " If you pay late, incur other charges, or if other amounts are added to your loan as permitted by this agreement such as taxes, insurance, or other charges with respect to the collateral, the final payment amount could be significantly more than the estimate shown in the payment schedule above. '' This clause recognizes the uncertainty in the final payment amount. It explicitly states that the total repayment amount could be significantly different than the estimate. While the clause is designed to protect the bank by allowing for upward adjustments to the total repayment amount, the language does not explicitly preclude the possibility of the total amount being less than the estimate. Given that the agreement allows for variability in the total repayment amount, I believe the final amount owed should be significantly less than the estimate, reflecting the banks mismanagement of my account. This is particularly appropriate considering : payments have been misclassified or misapplied, leading to unnecessary interest and fees ; the bank has failed to provide clear and accurate disclosures, in violation of the Truth in Lending Act ( TILA ) ; their business practices have caused substantial financial and emotional harm. Over the course of my loan, Ive paid off the total amount financed of {$22000.00}. I would like Huntington Bank to waive the remaining balance after I make the XX/XX/XXXX and XX/XX/XXXX payments. I believe that this resolution is fair, given the systemic errors and the harm caused by the banks failure to comply with its obligations under federal law. 

As a result of these violations, I have experienced significant financial and emotional harm. I was misled into believing my payments were sufficient, leading to the accumulation of unexplained fees and interest. The unexplained {$6500.00} remaining balance has caused significant stress and uncertainty about my financial obligations and my ability to maintain my future self-employment. 

List of requests to Huntington Bank XXXX. All monthly statements from XX/XX/XXXX to the present, including : amount due ( itemized, including late fees and accrued interest ) ; payment history for each month ( e.g., what was paid, what was owed ) ; allocation of payments ( principal, interest, fees ). 
XXXX. Copies of all past-due notices sent during the loan term, specifying : exact amounts listed as overdue ; any related charges, fees, or accrued interest. 
XXXX. An explanation of why statements were previously unavailable online or proof of when the bank allegedly sent email notifications informing me that my statements were ready. 
XXXX. System logs of account activity showing my account activity, including : when billing statements were made available online ; logs showing whether and when I clicked or reviewed [ non-existent ] statements ; any flags or adjustments made to my account. 
XXXX. A complete audit of my loan account to ensure all payments, late fees, and interest charges were applied correctly. 
XXXX. A complete payment history with : each payment made ( amount and date ) ; how each payment was allocated ( principal, interest, fees ) ; clarification for discrepancies ( e.g., {$660.00} payment in XX/XX/XXXX, missing XX/XX/XXXX record, {$100.00} payments ) ; any adjustments, errors, or reallocations in payment records ; explanation of " partial payments. 
XXXX. A detailed amortization schedule, including : original payment schedule at loan inception ; adjustments made for deferrals, late payments, or overpayments ; month-by-month breakdown of payments applied to principal, interest, and fees. 
XXXX. Explanation of accrued XXXX, including : how interest was calculated ( daily or monthly rate ) ; adjustments for late payments or deferrals ; impact of accrued interest on the principal balance. 
XXXX. A detailed summary of all late fees, including : dates fees were assessed ; amount of each late fee ; how payments were applied to cover late fees ( e.g., principal, interest, or fees ) ; explanation of how late fees impacted the total balance and interest accrual. 
XXXX. Written documentation for all deferral agreements, including : pandemic deferral ( XXXX XXXX ) ; possible XXXX - XX/XX/XXXX deferral ; any other deferrals ; terms and conditions for each deferral, including : how deferrals impacted the loan balance ; how interest accrued during these periods ; adjustments to the loan maturity date. 
XXXX. XXXX to any recorded phone calls and their written summaries, specifically : deferral terms and conditions were discussed ; loan management or account discrepancies were addressed ( XX/XX/XXXX call ). 
XXXX. A copy of the original loan agreement and any updates or amendments, covering : terms for late payments, deferrals, and interest accrual ; specific policies on how payments exceeding or falling short of the minimum amount are allocated. 
XXXX. A breakdown of the current balance owed ( {$6500.00} ), including : remaining principal ; accrued interest ; late fees ; any additional charges. 

To resolve this issue, I request the following : XXXX. Waive the deferred payments entirely in light of the banks failure to provide documentation or communicate the terms and conditions of the deferrals. Furthermore, the information provided by the banks representative during my phone conversation on XX/XX/XXXX, did not match their own records such as the loan transaction history. Specifically, the representative claimed there were only three deferred payments during the pandemic, whereas the transaction history shows potentially four deferred payments. Additionally, there is no explanation or documentation for the five-month gap in payments during XXXX, further indicating a lack of transparency and proper record-keeping. 
XXXX. Waive the remaining balance after I make my XX/XX/XXXX and XX/XX/XXXX payments. 
XXXX. Ensure compliance with TILA and CFPA regulations going forward, including providing clear and transparent statements to all customers.

Company response to consumer: Closed with explanation