Consumer complaint received 2025-12-07 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Account status incorrect
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: CA

Complaint narrative:
Bank of America unilaterally created an escrow account on my mortgage without providing the required written notice, sent critical communications to multiple wrong addresses, provided no electronic alerts, and misapplied my payments, which caused a servicerinduced delinquency. 

They acknowledged return mail for notices sent on this issue, due to incorrect addresses on my account, stating that a shadow system needed updating not just the portal where I updated my main permanent address, which has been on file since XXXX. I had no knowledge a shadow system or multiple address changes needed to be provided to Bank of America for the same mortgage account. 

Then, after I sent a formal RESPA Notice of Error ( NOE ) on XX/XX/XXXX via Certified Mail and FedEx Overnight, Bank of America failed to acknowledge the XXXX within the required 5 business days, violating 12 CFR 1024.35 ( d ). 

The first physical indication I received that anything was wrong was on my mortgage statement, showing a past-due amount. I called immediately on XX/XX/XXXX, and Bank of Americas representative told me : No late has been reported yet. They also said Condolences for the inconvenience multiple times on that call and re-assured me my account was in good standing. 

Yet a 30day late was reported within 24 hours, after I had taken corrective action and paid the balance due over the phone on XX/XX/XXXX. 
This 30day late was reported to the credit bureaus after I called immediately upon receiving the mortgage statement, causing my credit score to drop 120 points, severely harming my ability to secure housing needed for my son and I, during my soon-to-be-finalized divorce and obtain lines of credit needed for my real estate and investment businesses.

Bank of America has admitted to several servicing failures, including sending notices to multiple wrong addresses and relying on an undisclosed internal shadow address system for mortgages. I was made aware of this shadow system on a phone call with XXXX XXXX on XX/XX/XXXX ( emails attached ), and stated that I only updated my address on the portal and should have somehow updated these unknown-to-me systems. Notices escrow went to a temporary forwarding address used in XXXX and to the actual property address, and not the address which is on file with Bank Of America XXXX XXXX XXXX, XXXX XXXX CA ). 

Bank of America has acknowledged return mail from these out of date addresses, clearly failing to update their internal systems appropriately. Yet they still refuse to correct the derogatory credit reporting. 
I am requesting CFPB intervention to require Bank of America to : Remove the inaccurate XXXX delinquency Correct all servicing records Notify all 4 credit reporting bureaus ( XXXX XXXX XXXX XXXX XXXXXXXX ) that my account is current and delete the incorrect 30-day late notification and any other deregotary remarks on this account.

Conduct a full Regulation X review Prevent future servicing harm DETAILED FACTS & REGULATORY VIOLATIONS 1. Background I have an excellent payment history with Bank of America with 100 % on time payments prior to this issue.

My credit score was ~XXXX  prior to this issue. 


My correct address ( XXXX XXXX ) has been on file since XXXX and appears on every mortgage statement. 


I removed escrow on this loan because I pay taxes directly. I did not want escrow on this account to avoid exactly this reason. 



XXXX. Bank of America XXXX an Escrow Account Without Proper Notice In early XXXX, Bank of America unilaterally : Paid property taxes on my behalf Created an escrow account Increased my monthly mortgage payment Placed my payments into suspense Triggered delinquency and negative credit reporting I received no valid written notice of escrow initiation as required under : RESPA / Regulation X 12 CFR 1024.17 ( i ) ( 2 ) Regulation Z 12 CFR 1026.20 ( c ) ( material change in payment terms ) Bank of America has admitted that notices were sent to incorrect and outdated addresses, including : My former property address A temporary forwarding address from XXXX related to my inlaws ( from before my divorce ) These notices were never delivered to me. 

3. Failure of Electronic Notice No Alerts, No Emails, No App Notifications Despite claiming I chose electronic delivery, Bank of America never sent : Any alerts or push notification Any app inbox message Any text alert Nothing alerted me to : Escrow account initiation Payment increase Delinquency Default status Under CFPB standards, electronic disclosures must be reasonably calculated to reach the borrower. Silent, unalerted documents do not satisfy this requirement.

4. Returned Mail = Constructive Knowledge of Servicing Error A Bank of America AVP ( Dom ) admitted on a recorded call that : An XX/XX/XXXX escrow/tax notice was returned undeliverable.

Under RESPA 6 ( k ) ( 1 ) ( C ) : Once mail is returned, the servicer has constructive knowledge that notices are not reaching the borrower.

They must take corrective action.

No action was taken.

5. Dual Address System Undisclosed and Deceptive Bank of America admitted : Updating my address in the online portal does NOT update the mortgage servicing address.

Borrowers must call a separate department to update the mortgage address.

This requirement is not disclosed anywhere to consumers.

This hidden, dual-system address process is a deceptive and unfair practice under UDAAP / Dodd-Frank 1031.

6. The First Notice I Actually Received Was in XX/XX/XXXX The first physical or electronic indication I received that anything was wrong was my mortgage statement, showing a past-due amount. 
I called immediately on XX/XX/XXXX, and Bank XXXX XXXX representative told me : No late has been reported yet. And We will fix errors and update our systems and Condolences for the inconvenience Yet a 30day late was reported within 24 hours, after I had taken corrective action and paid the balance due over the phone on XX/XX/XXXX. 
This is classic servicer-induced delinquency, and reporting it is a violation of : FCRA 15 U.S.C. 1681s2 ( a ) Regulation V CFPB guidance on inaccurate furnishing 7. Formal RESPA Notice of Error Was Completely Ignored On XX/XX/XXXX, I sent a RESPA Notice of Error via : Certified Mail FedEx Overnight These packages were delivered ( proof will be attached ). 
Under 12 CFR 1024.35 ( d ) : The servicer must acknowledge receipt within 5 business days.

No acknowledgment has been received as of XX/XX/XXXX, which is past the 5day deadline.

This is a separate and serious RESPA violation.

8. Material Harm This inaccurate late payment and major servicing failure has caused : A XXXX drop in my credit score Severe complications in securing housing during a divorce Inability to obtain lines of credit for my real estate and investment business Reputational harm and financial instability This is significant, ongoing consumer 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