Consumer complaint received 2024-05-01 00:00:00
Product: Mortgage — Other type of mortgage
Issue: Trouble during payment process — Payment process
Company: OneMain Finance Corporation
State: VA

Complaint narrative:
This loan stemmed from a short sale of a second mortgage, as XXXX XXXXXXXX XXXX required it to be settled before closing on the home. It's distinct from a traditional mortgage since it was tied to a property sold in XXXX and is not linked to my current mortgage with XXXX XXXX in XXXX 


To the Consumer Financial Protection Bureau ( CFPB ), I am writing to bring to your attention the egregious mishandling of my loan by OneMain Financial, which has led to significant financial harm and inaccurate reporting on my credit history. 

The loan in question originated in XXXX from a short sale of a second mortgage, as XXXX XXXX XXXX required it to be settled before closing. It's distinct from a traditional mortgage since it was tied to a property sold in XXXX and is not linked to my current mortgage with XXXX XXXX in XXXX, with an initial amount exceeding {$17000.00}. Despite my unwavering commitment to diligently make payments, OneMain Financial erroneously reported missed payments, tarnishing my creditworthiness. Its imperative to note that XXXX XXXX sold the debt to OneMain Financial, adding a layer of complexity to the situation. 

Over the 15-year loan period, my sole intention was to fulfill my obligations in good faith, even amidst financial struggles. I maintained transparent communication with the lender and abided by the agreed payment schedule. 

However, when I encountered financial hardship, OneMain Financial extended a program offering a lower payment amount without adequately informing me of the credit implications or the impending end of my loan term. This lack of transparency only exacerbated the situation. 

Upon reviewing my credit report on XX/XX/XXXX, in pursuit of obtaining a Land Loan, I discovered that OneMain was reporting non-payments despite my consistent efforts to make payments. Upon contacting OneMain, I was informed that they had written off my loan, citing doubts about its repayment despite my ongoing payments. 

The agent acknowledged partial payments but revealed a glaring discrepancy : my principal balance stands at less than {$700.00}, while loan fees and late payments total over {$4700.00}, resulting in the debt being charged off. Its confounding why Im still being asked to pay a debt that has been deemed uncollectible. 

OneMains failure to effectively inform me about my loan and the programs they enrolled me in caused additional hardship to my credit report when I was already grappling with financial challenges. The onset of the pandemic in XX/XX/XXXX further compounded the lack of communication, occurring shortly after my loan was charged off in XX/XX/XXXX. 

In addition to the aforementioned issues, I want to address further concerns regarding OneMain Financials handling of my loan payments. Despite our agreements to enter into new payment arrangements, which were confirmed as forgiven and brought current by representatives of OneMain Financial, there persists the erroneous assertion that payments were late. This discrepancy casts doubt on the accuracy and reliability of their payment processing systems. 

Moreover, I wish to highlight OneMain Financials policy of automatically deducting payments from customers accounts via pre-authorization, renewable annually. While this system theoretically ensures timely payments, it has not been consistently applied in my case. There have been instances where breaks in my payments occurred, despite OneMain Financial having full access to my checking account for payment withdrawals. I placed trust in their ability to withdraw funds as needed, yet their failure to do so has resulted in missed payments being attributed to me. 

It is imperative to recognize that any missed payments are not a reflection of my intention but rather the consequence of OneMain Financials failure to fulfill their obligations in accurately processing payments. This inconsistency raises concerns about their reliability and adherence to their own policies. 

In addition to the aforementioned issues, I want to address further concerns regarding OneMain Financials handling of my loan payments. Despite our agreements to enter into new payment arrangements, which were confirmed as forgiven and brought current by representatives of OneMain Financial, there persists the erroneous assertion that payments were late. This discrepancy casts doubt on the accuracy and reliability of their payment processing systems. 

Moreover, I wish to highlight OneMain Financials policy of automatically deducting payments from customers accounts via pre-authorization, renewable annually. While this system theoretically ensures timely payments, it has not been consistently applied in my case. There have been instances where breaks in my payments occurred, despite OneMain Financial having full access to my checking account for payment withdrawals. I placed trust in their ability to withdraw funds as needed, yet their failure to do so has resulted in missed payments being attributed to me. 

It is imperative to recognize that any missed payments are not a reflection of my intention but rather the consequence of OneMain Financials failure to fulfill their obligations in accurately processing payments. This inconsistency raises concerns about their reliability and adherence to their own policies. 

It is crucial to emphasize that my XXXX XXXX account has been active since XXXX and serves as my primary checking account. OneMain Financial has had access to this account since XXXX, and it is where payments for the loan in question have been drawn from. Given the longstanding nature of this account and the direct access granted to OneMain Financial, I find it perplexing that discrepancies in my payment history persist. 

Each interaction with OneMain Financial representatives is recorded, ensuring accuracy and accountability in our communications. Despite this, there are discrepancies noted on my XXXX XXXX account, indicating that payments are labeled as telephone payments monthly, which is inaccurate. These payments are pre-planned and authorized by me to be withdrawn monthly from my account, in accordance with OneMain Financials policy of pre-authorized deductions renewed annually. 

The existence of these discrepancies raises serious concerns about the accuracy and integrity of OneMain Financials payment processing systems. It is imperative that these issues be thoroughly investigated and resolved to ensure transparency and accountability in their dealings with customers. 

In light of these issues, I urge for a thorough investigation into OneMain Financials payment processing practices and call for accountability to rectify any discrepancies. Thank you for your attention to this matter. 

Thank you for your attention to this urgent issue.

Company response to consumer: Closed with explanation