Consumer complaint received 2025-07-27 00:00:00
Product: Debt collection — Other debt
Issue: False statements or representation — Attempted to collect wrong amount
Company: NBT BANCORP INC.
State: HI

Complaint narrative:
Opened a loan for XXXX XXXX  with NBT Bank for {$93000.00} at 8.99 % APR that began to accrue interest on XXXX XX/XX/XXXX. The loan 's terms include 18 months of interest-only and simultaneous 18 month deferral of interest for {$43000.00} of the loan amount. The deferred amount accrues, but is only added to the loan on XXXX XX/XX/XXXX if the deferred principal amount is not paid by then. Instead, NBT charged interest in advance for the entire loan amount during the first 61 days, and then spread the excess amount ( {$1400.00} ) evenly over the remaining 15 months of the deferral period, which adds about {$93.00} to the monthly interest-only charge. This additional charges increases the interest-only payments by 25 %, from {$370.00} per month to {$470.00}. The method NBT uses to calculate interest is directly contradictory to the terms of the loan. 

The loan documents do indicate {$470.00} as an expected monthly payment, however all remaining terms of the loan contradict this amount. Due to the contradiction, this agreement would clearly be subject to contra proferentem. 

- Summary of communications : - My communications with NBT were by email, at XXXX and XXXX. 

On XXXX XX/XX/XXXX, I informed them of the discrepancy based on calculations that align with the loan terms, and requested an explanation of how NBT calculated interest charges. 

NBT responded on XXXX XX/XX/XXXX, affirming the loan beginning date and that " Your first duedate was XX/XX/XXXX so you had to pay 61 days interest at {$22.00} per day. Your monthly loan payment is {$470.00}. So your payments in the beginning will be covering the interest. '' On XXXX XX/XX/XXXX, I indicated the erroneous method of calculating the interest, and that their method did not align with the loan terms. Their method indicated that interest would be paid in advance and that interest would apply to the full amount during the first 61 days. I asked for NBT to review the loan again, and how their version of interest is permitted in the terms of the loan. 

NBT responded on XXXX XX/XX/XXXX to offer an amortization schedule that showed how payments are processed. 

On XXXX XX/XX/XXXX, I agreed to receive the amortizations schedule. On XXXX XX/XX/XXXX, the schedule had not been received so I asked for it again. I articulated to NBT my request for an amortization schedule and correction of past and future payments, that inaction by XXXX XX/XX/XXXX XXXX result in a complaint to CFPB. 

NBT responded on XXXX XX/XX/XXXX with an amortization schedule. 

On XXXX XX/XX/XXXX, I informed NBT that the amortization schedule was incomplete, missing the first three payments and had an inaccurate loan maturity date. I also informed NBT that the claims from XXXX XX/XX/XXXX were still unaddressed. I again articulated to NBT my request the correction of past and future payments by XXXX XX/XX/XXXX, that inaction may result in a complaint to CFPB. 

- End Summary - Communications with the customer service representatives appear to show disinterest in addressing the concern or responding with meaningful information. When seeking action by NBT in the future, I will begin the CFPB process much sooner.

Company response to consumer: Closed with explanation