Consumer complaint received 2022-03-22 00:00:00
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Trouble during payment process — 
Company: PENTAGON FEDERAL CREDIT UNION
State: NJ

Complaint narrative:
Hi, I had taken a home equity loan with Pentagon Federal credit Union ( XXXX # XXXX ) in XXXX. At that time I had a mortgage on my house from " XXXX XXXX XXXX  '' and also my home owners insurance ( with XXXX XXXX XXXX i.e. XXXX ) was paid from escrow by the mortgage company. On my home owners insurance, Penfed was the lien holder and listed as part of my home equity loan clause. 

In XXXX, I paid my mortgage in full and since my home owners insurance premium was paid from my mortgage escrow, I forgot that I had to pay for my home owners insurance premium. As a result by home owners insurance got cancelled on XX/XX/XXXX. I realized that in XXXX and had to take a new home owners insurance policy with NJM effective XX/XX/XXXX. Now since Pentagon Federal Credit union was lien holder on my home owners insurance policy they were notified about my home owner insurance policy cancellation but when I took a new home owners insurance policy with NJM I forgot to notify about the same to Pentagon Federal Credit Union. 

On XX/XX/XXXX, there was only a balance of {$1.00} on my home equity loan and I was unable to pay that off online, so I had to call Pentagon Federal Credit ( PenFed ) so that I could make the payoff. At that time I was told that payoff ( {$1.00} + Closing Fee of {$75.00} ) could only be done via a check or money could be transferred from my PenFed savings account. Since I didn't have enough balance in my PenFed account at that time so I had to transfer money from my XXXX  XXXX XXXX account to PenFed savings account. After transferring the money to my PenFed savings account when I called PenFed to pay off my home equity on XX/XX/XXXX, I was told that balance was about {$3100.00} because PenFed took home owners insurance on my behalf on XX/XX/XXXX with effective date of XX/XX/XXXX. When I told that I already have the home owners insurance policy the PenFed rep told me that once I provide the home insurance policy I won't have to pay the home owners insurance amount that PenFed took. I told that there would be gap on the same and she said that should be ok. So I uploaded my home insurance policy document to their website i.e.  mXXXX XXXX XXXX XXXX i.e. XX/XX/XXXX, when I again called PenFed because I was still seeing high balance against my home equity loan, I was told that I have to pay pro-rated amount of the insurance from XX/XX/XXXX i.e. the date when my home owner insurance policy got cancelled to my new home owners insurance date i.e. XX/XX/XXXX. This prorated amount will be approximately {$500.00}. All this for the home equity loan balance of {$1.00} for which I had offered to pay earlier but was not able to. At no point the PenFed called my that insurance was missing is needed or I would have taken an immediate action and could have avoided this. I requested them to waive off this as I have been an outstanding customer with them but they refused. 

Could you please help so that the prorated amount of home insurance on the policy that PenFed has taken on behalf of me is waived? 

Thanks, XXXX

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