Consumer complaint received 2024-03-13 00:00:00
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Trouble during payment process — Payment process
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: DC

Complaint narrative:
The home equity line of credit loan is held with Bank of America. The payment is auto withdrawn from my checking account that is also held with Bank of America. For my XX/XX/XXXX payment, I thought there was enough money in the account to cover the payment but there was not. I discovered this on XX/XX/XXXX and I immediately transferred money from another account to cover when they attempt to do another draw on the account. Shortly after, I double checked my account and it state Payment Applied and it appeared everything was fine but it was not. 

I discovered it was not on XX/XX/XXXX when I went into my account to see the money back in my checking account even though my home equity account still said payment applied. Anyway, I called Bank of America on XX/XX/XXXX and spoke with a representative. I was concerned about this being reported to the credit bureau he said it would not if I made the payment within 30 days so I immediately made the payment. I also inquired what would happen with the auto withdrawal from my checking because it appeared as if it was going to take out over {$2000.00} for XXXX and XXXX and not reset to reflect the payment I had made. It is important to note the appropriate amount of money was in the account to cover the XXXX payment. I was advised to speak with the check and savings department to stop the payment and was transferred. The call was then dropped. The issue is I could not stop the payment on my end. Everything had already been programmed even though my home equity account said I only owed my XXXX amount. 

On XX/XX/XXXX, Bank of America withdrew over {$2000.00} to apparently cover XXXX and XXXX which makes NO SENSE. But there was only money in the account to cover XXXX. When I discovered this on XX/XX/XXXX, I immediately called XXXX at XXXX. My account said the $ XXXX was to cover XXXX and the remaining was to be applied to the principal ( THIS IS NOT WHAT MY ACCOUNT CURRENTLY SAYS... THEY CHANGED IT ). In the call on XX/XX/XXXX, I said put only the principal amount back into my checking account so that does not show overdrawn and keep the XXXX payment, and the representative said no problem and I was on the phone with her until she was finished putting in the request. I was under the impression everything was fine. She gave me no reason to think otherwise. 

Today, XX/XX/XXXX, EVERYTHING is NOT fine. They said I insufficient funds in the account to cover the XXXX payment which is a complete LIE!! Additionally, they did not do what I asked them to do and what they told me they were going to do. I was then going to make the payment with them over the phone using my Bank of America account and I was told my home equity account had been flagged where I could no longer do electronic transfers or send a check. I have to get a money order or certified check and mail it to them. I am FURIOUS about this because the WHOLE thing was created by their system problems even in XXXX. 

I should not be flagged and I should not be punished for their systems. Also, a lender SHOULD NOT make it more difficult for someone to make their mortgage payment. I even asked if I could to to the branch and the answer was NO. I am also very concerned because information on my account continues to mysteriously change. For example, on XX/XX/XXXX my account said a payment had been applied to the principal and then that mysteriously changed to Insufficient Funds for the XXXX payment ( THAT MAKES NO SENSE!!! They should not be withdrawing ANYTHING for XXXX ). It should state the principal amount was refunded to my account which they DID NOT do. And they stated I had insufficient funds for XXXX which IS NOT TRUE. 

I am reporting this issue for 2 reasons. 
1. I should not have this flag because the error is with Bank of America 2. A lending institution should not be allowed to make it more difficult for anyone who is trying to make a payment on their mortgage and that is what Bank of America is doing.

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