Consumer complaint received 2016-09-19 00:00:00
Product: Mortgage — FHA mortgage
Issue: Loan servicing, payments, escrow account — 
Company: CITIBANK, N.A.
State: VA

Complaint narrative:
I am contacting you because of a problem that was created by Citibank with my mortgage payment and life insurance policy. We have had life insurance on our mortgage now for over 30 years. It was n't until we refinanced 10 years ago that we started having problems with Citibank. 

In our mortgage statement, it is clearly shown that the monies for the life insurance of {$27.00} are being taking out every month and put into escrow to make the life insurance payment. I received our new statement for XX/XX/XXXX and behold, the life insurance has been dropped off of our mortgage payment and for some reason Citibank canceled it!! My big question is, who are they to decide not to pay my insurance premiums and cancel my life insurance policy?? I have received a cancellation notice from the insurance company, but I received nothing in writing from Citibank stating that you were no longer going to make payments. They made this decision without my content or permission. 

All of this start XX/XX/XXXX when we had to file Chapter XXXX Bankruptcy. I had lost my full-time job and was unemployed for 9-months. We made the statement at that time that we were to continue making our mortgage payments as usual, nothing changed there. What did change, is that Citibank continued to take out the {$27.00} for the life insurance premiums, I am assuming put it in escrow and then stopped making those payments to the insurance company. After receiving a notice from XXXX XX/XX/XXXX, we were informed that they had not received a payment. We contacted them and we were told that the payments had stopped and now were 3 months behind! My question again is, why did the payments stop and what happened to 3 months ' worth of insurance premiums that were clearly stated on our mortgage statement it was taken out? 

My wife contacted Citibank and she was given a case number and to follow up again in 10-days. This would give the Citibank Representative time to investigate this issue. After the 10-day period and follow up from Citibank, my wife called yet again and had to explain the entire situation over to XXXX different people, and still can not find out why the payments stopped to XXXX, or why they were still taking out the money on a monthly basis. None of those XXXX people could explain why, what, where and when or give her a concerning answer. XX/XX/XXXX, we received a notice from XXXX that our life insurance was cancelled due to NONPAYMNENT for 6 months from Citibank. So as it stands right now, if I die, the house will not be paid off, and my wife will have to turn it back over to Citibank for a problem that YOU started, caused and refuse to resolve and/or fix. My wife suffers from XXXX and XXXX and can not work anymore. She has been waiting for more than 5 years on a XXXX decision. I currently work XXXX jobs to make ends meet, take care of the house, and the lawn, shopping and play caregiver to my wife of 36 years. She has no quality of life and this situation has not helped it at all. 

The way I see it, since the life insurance has n't been paid since XX/XX/XXXX and it was cancelled XX/XX/XXXX, Citibank now owes me 5 months ' worth of life insurance payments in the amount of {$130.00}. I 'm sorry to have taken this long to pursue this, but after trying to get a life insurance policy that I can afford, I can no longer let them get away with this. I 'm hoping that your organization can help us resolve this unjustified action by Citibank.

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