Consumer complaint received 2026-03-11 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: SOUTHSTATE BANK CORPORATION
State: GA

Complaint narrative:
To Whom It May Concern, I am submitting this message as a formal Notice of Error regarding the servicing of my mortgage escrow account and the failure to make a required hazard insurance payment. My homeowners insurance policy with XXXX was canceled due to non-payment, despite the fact that my mortgage is escrowed and the payment responsibility lies with SouthState Bank to disburse insurance premiums from the escrow account. As a result of this failure, I was forced to secure a new homeowners insurance policy at a significantly higher cost. For clarity, the relevant facts are as follows : My previous XXXX homeowners insurance policy had an annual premium of {$1200.00}. Due to the cancellation caused by non-payment, I was required to obtain a new homeowners policy with XXXX XXXX with an annual premium of {$3300.00}, requiring an immediate down payment in that same amount. The most recent request for payment from XXXX was issued on XX/XX/XXXX, and it was sent to the email address [ EMAIL ADDRESS ] associated with SouthState for insurance billing notifications. I have attached written confirmation from XXXX verifying that the billing request was sent and that the policy was ultimately canceled due to non-payment. At the time the premium should have been paid, sufficient funds were available in my escrow account to cover the insurance payment. Additionally, I spoke directly with Senior Vice President XXXX XXXX regarding this matter. During that conversation, XXXX XXXX acknowledged that the policy was canceled due to non-payment but refused to provide any compensation or accommodation for the financial harm caused. Instead, I was told that I should have exercised better follow-up with SouthState regarding the payment. This position is particularly troubling given that escrow accounts exist specifically so that lenders manage and disburse required insurance payments. During my discussion with XXXX XXXX, it was also suggested that confusion surrounding the cancellation may have been related to a prior inspection requirement associated with the policy. That inspection issue was fully resolved in XX/XX/2025 and is entirely unrelated to the subsequent cancellation of the policy. I have documentation confirming that the inspection requirement was satisfied and closed months prior to the XX/XX/XXXX billing request referenced above. This situation has created unnecessary financial harm and significant frustration. When a mortgage loan is serviced with an escrow account, the lender assumes responsibility for disbursing insurance premiums on time. It is unreasonable to shift that responsibility to the borrower after a servicing failure has already occurred. The consequences of this error have included : Cancellation of my homeowners insurance policy Loss of a lower-cost policy that I had maintained in good standing The need to secure a significantly more expensive replacement policy Extensive time and back-and-forth communication attempting to resolve an issue that should not have occurred in the first place I am therefore requesting that SouthState Bank : 1. Formally acknowledge the servicing error related to the failure to pay the escrowed insurance premium. 2. Reimburse or credit the difference between the XXXX annual premium ( {$1200.00} ) and the replacement XXXX XXXX premium ( {$3300.00} ). 3. Confirm that my escrow account records will be corrected and that appropriate procedures are in place to prevent any future failure to disburse required insurance payments. This situation has involved repeated back-and-forth communication and an unfortunate lack of professionalism in addressing a legitimate servicing concern. As a client, I expect responsible handling of escrow obligations that are contractually assigned to the lender. Please treat this correspondence as a formal request for investigation and resolution. If this matter can not be resolved promptly and fairly, I will proceed with submitting this complaint to the Consumer Financial Protection Bureau for further review. I look forward to your written response. Sincerely, XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX Loan no. XXXX XXXX XXXX Attachments : XXXX billing notice and cancellation confirmation Evidence of billing request sent XX/XX/XXXX Documentation confirming inspection issue resolved XX/XX/2025 XXXX XXXX replacement policy documentation

Company response to consumer: Closed with non-monetary relief