Consumer complaint received 2026-04-27 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Managing the loan or lease — Billing problem
Company: BMO BANK NATIONAL ASSOCIATION
State: CA

Complaint narrative:
I am submitting this complaint regarding ongoing loan servicing errors by BMO Bank related to my auto/RV loan, which I obtained in XX/XX/XXXX. From the outset, my intent has been straightforward : to make my required monthly payment and, in addition, make consistent principal-only payments in order to reduce the loan balance more quickly. Despite following the banks explicit instructions, BMOs servicing system has repeatedly misapplied payments, created unexplained interest charges, and produced inconsistent and contradictory account balances. Multiple representatives have been unable to provide a clear or consistent explanation. At BMOs direction, I opened a BMO checking account to facilitate proper allocation of both minimum payments and additional principal-only payments. On XX/XX/XXXX, I initiated a {$1000.00} payment through BMOs system. This payment was intended to consist of my minimum monthly payment of {$410.00}, with the remaining {$580.00} designated as a principal-only payment. However, the bank failed to process the payment as instructed. Instead, only the {$580.00} portion was applied, and it was incorrectly allocated between principal ( {$320.00} ) and interest ( {$250.00} ), contrary to my explicit intent. After contacting BMO, I was informed that this was an error. On XX/XX/XXXX, BMO reversed {$580.00} back to my account. However, on that same day, the bank : processed my minimum payment of {$410.00}, applied {$170.00} toward principal from the previously reversed amount, and initiated an additional {$410.00} payment. These transactions were not clearly explained, and their sequencing and allocation created confusion regarding my actual loan balance and payment status. On XX/XX/XXXX, I made my next minimum payment of {$410.00}. At that time, I was informed that I owed an additional {$100.00} in interest. This was unexpected and inconsistent with my payment history, particularly given my prior overpayments. BMO representatives were unable to provide a clear explanation, stating only that it was based on how prior payments had been applied. To avoid further complications, I paid the additional {$100.00} as instructed, with the understanding that doing so would bring my account current and resolve any discrepancies. On that same date, I also made a separate {$500.00} principal-only payment, which was correctly applied. However, when my XXXX payment became due, the system reflected a minimum payment of {$300.00} instead of the contractual {$410.00}. This suggests that the {$100.00} payment was misapplied or improperly credited, once again creating confusion and undermining my ability to track and manage my loan accurately. This pattern has made it effectively impossible for me to reliably make principal-only payments, despite following the banks instructions and maintaining consistent communication. The account history has become unnecessarily convoluted, and BMO has been unable to provide a clear accounting of how payments are applied or why discrepancies continue to occur. I am concerned that these servicing errors may be resulting in excess interest charges and preventing me from reducing my principal balance as intended. ance to ensure accurate servicing of my loan and to prevent further financial harm.

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