Consumer complaint received 2024-11-15 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: JPMORGAN CHASE & CO.
State: AZ

Complaint narrative:
Complaint Template for XXXX and CFPB Regarding Negligence by JPMorgan Chase on Home Loan Escrow Subject : Negligence in Escrow Handling Resulting in Double Payment and Financial Impact To Whom It May Concern : I am filing a formal complaint against JPMorgan Chase regarding their handling of my mortgage escrow account, which resulted in a double payment of homeowners insurance, an escrow shortfall, and increased monthly payments. 

Details of the Incident : Timeline of Communication : On XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX, I contacted JPMorgan Chase through their customer service line regarding the removal of homeowners insurance payments from escrow on my mortgage account. 
On these calls ( recorded by Chase XXXX, I was assured multiple times that no future payments would be disbursed from escrow for homeowners insurance. 
Submission of Proof : On XX/XX/XXXX, I uploaded the required proof of payment and the policy document from our new homeowners insurance company to Chase, further confirming that the policy had been paid in full. 

Escrow Disbursement Error : Despite the reassurances from Chase, they disbursed a payment from the escrow account to the new insurance company after the policy had already been fully paid. This resulted in : A double payment for the policy. 
An escrow analysis shortfall, which increased my monthly mortgage payment as I am now effectively repaying the erroneously disbursed insurance payment each month.

Legal and Regulatory Concerns : Violation of RESPA ( Real Estate Settlement Procedures Act ) : Under 12 CFR 1024.17 ( k ), mortgage servicers are required to conduct escrow account management in a manner that ensures funds are disbursed accurately and timely, avoiding errors that could result in financial harm to the borrower. The double payment and resulting shortfall indicate negligence in escrow management. 

Misrepresentation and Negligence : Chase 's repeated assurances that no payments would be made, followed by their actions to the contrary, constitute misrepresentation. This may also violate consumer protection laws, such as 15 U.S.C. 45 under the Federal Trade Commission Act, which prohibits unfair or deceptive acts.

Failure to Correct Errors : Under RESPA and related CFPB regulations, Chase has a duty to address and resolve errors in escrow accounts promptly once brought to their attention. Their failure to prevent or rectify this issue has caused financial and emotional distress.

Impact on Me : The escrow shortfall caused by the double payment has unjustly increased my monthly mortgage payment. I have had to bear the burden of addressing this error despite assurances that the situation would not occur. This experience has significantly eroded my confidence in Chase 's ability to competently manage my mortgage account. 

Desired Resolution : Immediate Correction : Reimburse the escrow account for the disbursed funds to eliminate the shortfall and adjust my monthly payment back to its correct amount.

Provide a detailed explanation and timeline of how the funds will be returned and the account corrected. 

Review and Improvement of Processes : Investigate the root cause of this error and ensure safeguards are in place to prevent similar incidents in the future. 

Compensation for Damages : Consider providing compensation for the financial inconvenience and stress caused by this situation. 

I trust that JPMorgan Chase will take this matter seriously and rectify the error promptly. 

Thank you for your attention to this matter.

Company response to consumer: Closed with explanation