Consumer complaint received 2025-12-08 00:00:00
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Trouble during payment process — Trying to communicate with the company to fix an issue while managing or servicing your loan
Company: FourLeaf Federal Credit Union
State: NY

Complaint narrative:
I am filing this complaint regarding the unlawful and harmful servicing practices of Four Leaf Bank and their servicer XXXX related to my HELOC account. Their actions include misapplication of escrow payments, failure to pay property taxes that they are contractually required to pay, forcing principal payments even though my HELOC gives me a XXXX option to pay interest-only, and inaccurate credit reporting. 



XXXX. Misapplication of Escrow Payment ( Escrow Already in a Deficit ) My escrow account has been in a deficit ( negative status ) for years due to outstanding property taxes. Even with a deficit, any payment I make toward escrow must still be applied to escrow, because every payment brings the escrow closer to a positive balance. 

Four Leaf/XXXX took XXXX of my escrow payments and incorrectly applied it to principal instead of to escrow. This is a misapplication of funds and a direct servicing violation. They also refuse to correct this error or reapply the funds to escrow where they belong. 



XXXX. Property Taxes Are Escrowed Because My Escrow Is in a Negative Status Yet Four Leaf/XXXX Still Refuse to Pay the Taxes My property taxes are being escrowed because the escrow account is in a negative status, and under my HELOC terms : Four Leaf must escrow my property taxes Four Leaf must pay all property taxes on my behalf I am not permitted to pay the taxes directly while the escrow is in a deficit They must continue paying the taxes even while the escrow remains negative This must continue until the escrow becomes positive again Despite this contractual obligation, Four Leaf/XXXX  have still not paid any of the property taxes. I have confirmed this directly with each tax office : General Taxes : unpaid School Taxes : unpaid XXXX XXXX XXXX  Taxes : unpaid I have notified Four Leaf/XXXX more than XXXX times documents from tax offices, in writing, with supervisors over the phone, and in person with the branch manager, branch staff. 

I repeatedly warned them that : Because they missed required tax deadlines, the tax amounts keep increasing If they send the old/original amount, the tax office will not accept it They must obtain updated amounts before attempting payment Four LeafXXXX have deducted outdated tax amounts from my escrow and claim they sent payments. 

Tax Offices Have NO Record of Any Payment Which Means Nothing Was Sent I can not confirm if Four Leaf/XXXX  actually sent anything, but all tax offices stated : They have no record of any payment being received from Four Leaf If any payment had been sent even the wrong amount the tax office would have recorded it If it was the wrong amount, it would have been returned, leaving a record Because the tax offices show no record and no returned payment, this means no payment was ever sent, despite Four Leafs claims They Refuse to Contact the Tax Offices Directly I have repeatedly told Four Leaf/XXXX that someone from their tax or escrow department must : Call the tax offices Get the correct updated amounts Get the updated payment instructions Send the correct payment No one has taken these steps. 

Because of this, all of my tax bills have remained unpaid. 
As a result : The balances continue to rise On XX/XX/XXXX, the XXXX taxes went to auction A lien was placed against my property This occurred solely because Four Leaf/XXXX failed to pay taxes they are contractually required to handle while escrow is in a negative status. 



XXXX. Four Leaf/XXXX Are Forcing Principal Payments Even Though My HELOC Gives Me a XXXX Option to Pay Interest-Only My HELOC contract provides a XXXX draw period from XXXX to XXXX. 
During this entire XXXX period : My minimum required payment is interest-only I have the option to pay principal if I choose Paying principal is voluntary, not mandatory I have never been late on my required minimum interest-only payments. 

Despite this, Four Leaf/XXXX are : Forcing mandatory principal payments, which violates my HELOC terms Treating my HELOC like a fully amortizing mortgage Changing my required payment amount every month Eliminating my contractual right to choose interest-only payments for the full XXXX window They Claim They Can Do This Because My Escrow Is in a Negative Status Which Is Unlawful Four Leaf/XXXX  repeatedly told me that because my taxes are in a deficit ( negative ) : They can force principal payments They can override my XXXX interest-only right They can change my minimum payment structure I was told by a Fourleaf employee that they can do anything they want to my loan. 
This is unlawful and completely unsupported by my HELOC agreement. 

An escrow deficit written in my contract only allows the lender to : Escrow the property taxes It does NOT allow them to : Modify the HELOC Force principal repayment Remove my interest-only option Override my XXXX draw period Their actions are an unauthorized modification of my loan terms and have caused significant financial hardship. 



XXXX. False and Damaging Credit Reporting Four Leaf continues to report false information to the credit bureaus, including : Reporting my HELOC as closed when it is open and active Reporting an incorrect loan balance Reporting a false principal XXXX interest XXXX escrow payment structure Reporting information that has harmed both my credit and my husbands credit These inaccuracies are a direct result of Four Leafs unlawful servicing actions. 



XXXX. Pattern of Unlawful Servicing Practices Four Leaf/XXXX have repeatedly : Misapplied escrow funds Refused to pay taxes that they are contractually obligated to pay Claimed to send payments that tax offices have no record of Allowed a lien and auction notice to occur Forced principal payments unlawfully Removed my XXXX interest-only option Reported inaccurate information to credit bureaus Ignored multiple complaints Caused significant financial harm and put my home at risk Requested CFPB Action I respectfully request that the CFPB require Four LeafXXXX to : XXXX. Correct the misapplied escrow payment XXXX. Provide a complete escrow audit XXXX. Pay all outstanding property taxes immediately XXXX. Resolve the tax lien and all penalties XXXX. Stop forcing principal payments XXXX. Restore my right to interest-only payments through XXXX XXXX. Correct all inaccurate credit reporting XXXX. Provide a written explanation for all servicing actions XXXX. Ensure future compliance with federal lending and servicing laws Four Leaf/XXXX  are violating multiple federal laws, including the Fair Credit Reporting Act ( FCRA ) by reporting inaccurate and misleading information about my account. They are also violating RESPA ( Real Estate Settlement Procedures Act ) through improper escrow handling and TILA/Regulation Z by unlawfully changing the terms of my HELOC and forcing payments not required by my contract.

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