Consumer complaint received 2025-09-09 00:00:00
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Trouble during payment process — Payment process
Company: CITIZENS FINANCIAL GROUP, INC.
State: RI

Complaint narrative:
I am writing to express my extreme disappointment and frustration regarding the recent handling of my loan reinstatement with Citizens Bank.

On multiple occasions, I mailed a check to Citizens bank to cover the balance on my Home Equity Loan, however Citizens bank returned my check stating it was not enough to cover the entire amount, because the time they sent the bill and the time I sent payment there were additional cost incurred and the check does not cover such newly incurred amount. Which is absolutely unheard-of! Usually, the paid amount will be deducted from the newly overall amount and a new bill for the balance shall be sent out. Yet, on two ( 2 ) occasions Citizens Bank returned my check for insufficient payment.

In a recent occasion, after they rejected my payment several times, I called bank loan office and the attorney on record, XXXX XXXX XXXX, XXXX for a reinstatement amount. Both the bank loan office and the attorney office provided me with the same amount of {$11000.00}. I went to attorneys office at XXXX XXXX XXXX, XXXX XXXX, XXXX, MA XXXX to pay for the reinstatement amount. A copy of the reinstatement canceled check, and the reinstatement letter from the attorneys office showing the amount are attached to this complaint. 

The reinstatement letter provided the full reinstatement amount for my loan, which included all past due payments as well as the payment for the month of XXXX. I was assured that this payment would bring my account completely current on XX/XX/2025. I submitted the payment on XX/XX/2025, thinking all loan balance including the month of XXXX has been paid. Despite this payment, I have received a bill that shows my XXXX payment as late and Citizens is charging me late fees. A snapshot from loan payments portal is attached as well.

This is not only an error in accounting but a serious breach of trust. I fulfilled my part of the agreement by paying the exact amount Citizens Bank requested, in full, and on time to bring my account to current. Their failure to correctly apply this payment is unacceptable and demonstrates a profound lack of competence in handling their customers ' accounts.

The fact that I am being charged a late fee for a payment that was included in the reinstatement amount I provided is a clear example of their institution profiting from its own error and, in my view, is a dishonest practice that borders on theft.

I demand that Citizens bank immediately corrects this error. I expect my account to be fully updated to reflect the XXXX payment as received, and all associated late fees and negative marks on my credit report to be reversed. Since I have paid the said XXXX payment to prevent late payment report to my credit profile. I expect Citizens bank to mark my XX/XX/2025 payment as payment for XXXX, and mark my upcoming payment as XXXX bill not for XXXX. Furthermore, I require a written confirmation that this has been completed.

Company response to consumer: Closed with explanation