Consumer complaint received 2025-08-29 00:00:00
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Trouble during payment process — Payment process
Company: NEW YORK COMMUNITY BANCORP INC
State: CA

Complaint narrative:
This is my account of the matter which resulted in me having a XXXX late report sent to the credit bureaus. All dates and times are approximated. In early XX/XX/year> I contacted a Flagstar representative in order to obtain assistance in setting up an auto-pay account. I specifically asked a representative to carefully walk me through the setup so that there would be no confusion or issues, this is my common procedure. When the Flagstar representative and I reached the account information section, I clearly advised the Flagstar representative that my source of payment would be by my checking account. Additionally, I asked how Flagstar bills for payment. I specifically asked this question because my account requires members to add the digit 2 for electronic transfers. The Flagstar representative told me that she was not sure. The Flagstar representative placed me on hold in order to confer with another employee to obtain the correct answer. Upon the return of the representative, I was instructed to enter only the checking account number and leave off the XXXX. Approximately 2 months later, I began receiving phone calls in the late afternoon approximately XXXX regarding payment, it seemed that the autopay was not working, in turn, each time I brought the account current. I called and spoke to at least XXXX different representatives regarding this matter after each phone call I was assured everything was in order. Finally, I set up a conference call with my credit union representative and a Flagstar representative regarding this matter. After that meeting, I was able to figure out on my own that the Flagstar representatives autopay setup instruction was incorrect, 2 needed to be added to my account number in order for Flagstar to receive payment. After I updated the Flagstar autopay account everything operated smoothly. However, approximately 2 billing cycles later I received a letter that stated my autopay had been cancelled due to late payment and for the remainder of my loan the only acceptable payment method is US mail cashiers check or money order. When I contacted Flagstar regarding this matter, I was told sorry the letter was generated by their automated system and my autopay account was reactivated. As a result of all the issues with Flagstar I decided to close the account. Upon requesting and receiving my Flagstar payoff letter to my chagrin I noticed that there was a late fee. This late fee matter should have been brought to my attention on occurrence so it could have been resolved, not several months later as I was closing my account and they reported a 1 month late on my credit report. Upon seeing this late payment on my credit report, I contacted Flagstar via phone call, I was told to send them a letter, they declined my request to remove the late payment from my credit report and return the late fee. The Flagstar representative and co-employee errored in their instruction in filling out the Flagstar bank Autopay. As a result of their action, I was removed from my XXXX credit rating score and suffered a substantial drop in credit score. At no time was my account insufficient. This matter was not my fault or error and I should not be penalized for following the Flagstar bank representatives instructions.

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