Consumer complaint received 2026-02-16 00:00:00
Product: Payday loan, title loan, personal loan, or advance loan — Installment loan
Issue: Charged fees or interest you didn't expect — 
Company: FIRST CITIZENS BANCSHARES, INC.
State: GA

Complaint narrative:
I am submitting this complaint regarding First Citizens Bank & Trust Company for serious loan servicing errors involving repeated internal payment reversals, improper late fees, inaccurate delinquency coding, inflated payment amounts, and threatened credit reporting. The alleged delinquency on this account arose from the banks internal servicing and posting practices, not from borrower nonpayment. 

I obtained a retail installment loan in XX/XX/XXXX in the principal amount of {$25000.00} at a fixed interest rate of 13.250 %. From loan inception through XX/XX/XXXX, payments were made timely and processed correctly. In XX/XX/XXXX, I made an additional payment that the bank accepted and applied without issue. The account was current at that time. 
Beginning XX/XX/XXXX, XXXX XXXX initiated a pattern of accepting and posting payments, assessing interest, and then reversing those payments internally without explanation. 
On XX/XX/XXXX, a scheduled payment of {$840.00} was posted and interest of {$410.00} was assessed. The payment was subsequently reversed internally. The account was not re-aged after subsequent payment activity, and a late fee of {$25.00} was assessed on XX/XX/XXXX. 
On XX/XX/XXXX, the loan ledger reflects duplicate and conflicting postings, including a payment of {$870.00} that was reversed, a separate payment of {$750.00}, and duplicate interest charges on the same date. A late fee of {$30.00} was assessed on XX/XX/XXXX. 
On XX/XX/XXXX, a payment of {$870.00} was again posted and reversed internally. Additional payments of {$480.00} on XX/XX/XXXX and {$640.00} on XX/XX/XXXX were received and applied, yet the account was still not re-aged. A late fee of {$16.00} was assessed on XX/XX/XXXX. 
In XX/XX/XXXX, despite continued payment activity and no clean missed installment, an additional late fee of {$42.00} was assessed, further compounding an already inaccurate delinquency balance. 
At no time were payments returned for insufficient funds, nor does the loan transaction history reflect returned ACH items or reversal reason codes attributable to borrower error. Payments were manually initiated and funds were available. The delinquency status resulted from internal servicing reversals and failure to properly re-age the account, not from a missed contractual installment. 
As of XX/XX/XXXX, the XXXX XXXX online portal reflects inconsistent and inflated account data derived from the same servicing errors : Payoff Loan Balance : {$21000.00} Credit Limit : {$25000.00} Interest Rate : 13.250 % Next Payment Date : XX/XX/XXXX Next Payment Amount : {$1700.00} The original contractual monthly installment on this loan was {$840.00}. The current Next Payment Amount of {$1700.00} is nearly double the agreed installment and reflects the roll-forward of reversal-driven balances, improperly assessed late fees, and failure to re-age the account rather than any legitimate recalculation based on borrower performance. 
The most recent statement due XX/XX/XXXX reflects a past-due status and includes language threatening credit bureau reporting . The alleged delinquency does not reflect a missed contractual installment but instead reflects internal payment reversals and servicing errors. Any negative credit reporting under these circumstances would be inaccurate.

I submitted a formal written dispute to XXXX XXXX through their secure portal requesting payment research, manual re-aging of the account, reversal of improper late fees, correction of balances, and suppression of credit reporting during the dispute. The bank has not corrected the account. 
Attachments Provided Loan account transaction history showing posted payments, reversals, interest charges, and late fees ( including XX/XX/XXXX ) Deposit account transaction history demonstrating payments leaving my checking account XX/XX/XXXX loan statement reflecting the disputed past-due status and credit reporting notice Screenshot ( s ) of the current First Citizens portal reflecting payoff balance and next payment amount Requested Resolution Conduct full payment research for reversed and misapplied payments ( including XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX ) and disclose reversal reason codes. 
Manually re-age the loan account to reflect its correct status based on payments made and accepted. 
Reverse all late fees assessed due to servicing errors ( XX/XX/XXXX through XX/XX/XXXX ). 
Correct the account balance, payoff amount, and next payment amount to reflect accurate accounting. 
Suppress any negative credit reporting during this dispute and correct or delete any inaccurate reporting already furnished. 
Provide written confirmation of corrective action. 
This complaint concerns the furnishing and maintenance of inaccurate account information, improper handling of payment disputes, and servicing practices that do not reflect actual borrower performance. I respectfully request CFPB review and intervention to ensure compliance with federal consumer financial protection standards.

Company response to consumer: Closed with explanation