Date Received: 2023-03-22
Issue: Trouble during payment process
Subissue:
Consumer Complaint: I signed a loan modification with the bank on XX/XX/XXXX under the COVID Disaster Relief Program and XXXX XXXX XXXX Modification Program. Under RESPA the bank was required to perform an Escrow Analysis and present it to me prior to me accepting their Payment Deferral plan. This never happened. Also in the past 30 days and nearly seven months after my loan was modified the bank for the first time alerted me of an alleged {$14000.00} escrow shortage in my account and without my consent " automatically '' spread it over 12 months which resulted in an increase to my mortgage payment of approximately 50 % in violation of the terms of the loan agreement and Federal law ( without borrower consent any shortage must be spread over 60 months, see XXXX XXXX bulletin below ). I can not afford the new payments. I have attached two files. The first is a letter I received " Escrow Account Disclosure Statement '' dated XX/XX/XXXX notifying me for the first time of the alleged deficiency of {$14.00}, XXXX. The second page shows how the amount was calculated and shows a " beginning balance '' in XX/XX/XXXX of $ XXXX, which the bank never informed me about prior to presenting me with the COVID-19 Payment Deferral Plan and was required to amortize into my new loan mod payment, or at a minimum, spread over 60 payments which the bank never did ( " [ e ] scrow shortages resulting from Escrow analyses performed as part of evaluation for a Flex Modification must also be spread over 60 equal monthly payments. '' ) Also the future analysis section incorrectly includes a cost for " Property Insurance '' which is paid by me directly. The second letter is the bank notifying me that I am in " default '' of the terms of the mortgage and threatening acceleration and foreclosure action. FHFA states " [ t ] he Servicer may not accelerate or compress the remaining Escrow shortage amount into a new Escrow payment or shorter repayment period as a result of a future Escrow analysis, '' which is exactly what the bank did here by rolling over my alleged XXXX escrow shortage into XXXX. The bank sending these letters to me was unlawful because it is in default of RESPA and the express terms of my flex modification. -- -- -- -- Bulletin XXXX Servicing Issued XX/XX/XXXX ESCROW SHORTAGE FOR COVID-19 AND DISASTER PAYMENT DEFERRALS AND FLEX MODIFICATIONS Effective XX/XX/XXXX, but Servicers are encouraged to implement the new escrow shortage requirements immediately. At the direction of FHFA, and in coordination with Fannie Mae, effective XX/XX/XXXX, when evaluating a Borrower for either a COVID-19 or Disaster Payment Deferral, Servicers must perform an Escrow analysis in accordance with the Real Estate Settlement Procedures Act ( RESPA ) and any applicable federal, State, XXXX local law. If the Servicer determines that there is an Escrow shortage, the Servicer must disclose the amount of the shortage to the Borrower before the Borrower accepts the Payment Deferral. If the Borrower is unable to pay the Escrow shortage as a lump sum, then the Borrower must pay the shortage as part of the monthly principal, interest, taxes and insurance ( PITI ) payment. If the Borrower must make monthly Escrow shortage payments, then the Servicer must : Spread the repayment of the Escrow shortage amount in equal monthly payments over a period of 60 months, unless the Borrower chooses to pay off the shortage over a shorter timeframe, not to be less than 12 months Take into account any remaining unpaid amount of the Escrow shortage in any subsequent Escrow analysis to ensure that the Borrower is able to continue to pay all Escrow shortage amounts over the remaining portion of either the current remaining Escrow shortage repayment period or a period up to 60 months. The Servicer may not accelerate or compress the remaining Escrow shortage amount into a new Escrow payment or shorter repayment period as a result of a future Escrow analysis. If the Borrower is unable to afford a COVID-19 Payment Deferral or Disaster Payment deferral based on the increased monthly payment resulting from an Escrow shortage repayment, the Servicer must evaluate the Borrower for a Flex Modification. Any Escrow account shortage that is identified at the time of the Payment Deferral must not be capitalized and the Servicer is not required to fund any existing Escrow account shortage. Additionally, the COVID 19 Payment Deferral and Disaster Payment Deferral Agreements ( see Attachment A and Attachment B to this Bulletin in the dropdown above ) have been updated to reflect this change. Flex Modification Escrow shortages resulting from Escrow analyses performed as part of evaluation for a Flex Modification must also be spread over 60 equal monthly payments. A Borrower may pay the shortage off in a lump sum or may choose a shorter repayment period, not to be less than 12 months.
Company Response:
State: VA
Zip: 20155
Submitted Via: Web
Date Sent: 2023-03-22
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-03-22
Issue: Struggling to pay mortgage
Subissue:
Consumer Complaint: This is the third complaint I have made to CFPB regarding this issue. Citizens has now said that we canceled the modification on two seperate dates. On XX/XX/XXXX a represenative in Loss Mitigation told me that there were notes on my file that I called on XX/XX/XXXX to cancel my modification. XXXX XXXX responding on behalf of Citizens ' to my CFPB Complaint # XXXX, states that bank records indicate I called on XX/XX/XXXX to cancel my modification. Attached is the 'No Oral Agreements ' page of the modification as well as my phone records for XX/XX/XXXX and XX/XX/XXXX. No call was made to Citizens ' or the VA. If the VA is communicating to Citizens that they can't use my original paperwork because of the error in numbers signed and accepted by all parties, then Citizens needs to write-off the mistake they made and honor the terms signed by all parties. Had they done this in a timely manner to begin with, all parties could have signed the new numbers and this would have been handled long ago. This is now 13 months of fighting to get this straigtened out. And there are a couple of significant reasons that we are not willing to complete an entirely new package. Number 1 - interest rates are significantly different than they were when this fully executed modification was put into place and we made eight payments as agreed on the modification. Number 2 - our credit score has taken a substantial hit due to Citizens ' errors. I received two letters both dated XX/XX/XXXX. One indicates that I have contacted Citizens requesting information regarding Foreclosure Prevention options and that XXXX XXXX would be my one and only contact person at Citizens. The second indicates that Citizens has received my request for Loss Mitigation assistance and my financial package that they are in the process of reviewing. Again, Citizens is contradicating themselves and providing information that is untruthful. At what point does someone take action and make Citizens fix THEIR mistakes without it having a substantial consequence to me.
Company Response:
State: WA
Zip: 99337
Submitted Via: Web
Date Sent: 2023-03-22
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-03-21
Issue: Closing an account
Subissue: Can't close your account
Consumer Complaint: I believe that Citizens Bank illegally reopened a closed account I previously had with Investors Bank. In XX/XX/XXXX, I closed the savings account I had with Investors Bank. The account was jointly held with my husband. In XX/XX/XXXX, I received a " Savings Account Statement '' letter ( see attached ) stating that I had an existing account open with Citizens Bank ( Citizens Bank purchased Investors Bank ) with a {$0.00} account balance. The account seemed to have been opened on XX/XX/XXXX. The last four digits of the account referenced in the letter match the closed account I had with Investors Bank. The letter states that fees will be incurred if we do not maintain a minimum balance of {$200.00}. However, a " New Account '' waiver was applied to the account so that such fee would be waived for the first four months. The letter implies that Citizens Bank illegally opened a closed account I had with Investors Bank. I called Citizens Bank to rectify the issue and they stated that they did not have an open account for me ; however, they refused to confirm as much in writing, which gives me great concern.
Company Response:
State: NY
Zip: 115XX
Submitted Via: Web
Date Sent: 2023-03-21
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-03-21
Issue: Opening an account
Subissue: Account opened as a result of fraud
Consumer Complaint: I've received an email on XXXX XXXX 2023 that mentioned my new account was open and I just noticed it when I got an email this morning with an account statement ready to view. This was from Citizen Bank. I do not have an account with then and this is a case of identity fraud, someone used my name, birthday and ssn to open a savings account. I finally got ahold of someone from customer service but all they did was take my info and inform me they sent a request into their fraud department. They told me I couldn't call them directly or even close the account right away so now I have no idea if the fraudulent account is still open or by whom. They were not helpful and seemed to not care it was identity theft.
Company Response:
State: PA
Zip: 17601
Submitted Via: Web
Date Sent: 2023-03-21
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-03-21
Issue: Opening an account
Subissue: Didn't receive terms that were advertised
Consumer Complaint: On XX/XX/2023, visited XXXX, VA branch and requested account opening for small business, sole proprietor checking account, in response to a promotional advertisement for {$500.00} opening account bonus. Upon discussing with the Branch Manager and an associate, they agreed to open account and informed me of a special interest rate. Upon disclosure of the {$500.00} promotion, the demeanor of representatives changed and they informed me that a promo code was needed. After providing the terms of the promotion, attached with complaint, and pointing out that the fine print eligibility did not contain such language, they continued to argue with me about the bonus not being paid once terms were met. Regardless, I informed the representatives that I would like to proceed, and that if bonus failed to be paid after all terms were met, I would escalate at that time. The associate then began the account opening process, obtaining all required information to complete the account application. Upon nearing completion, Branch Manager, came back to advise that I would not be paid the bonus. Upon asking for this statement in writing, and advising that it an illegal practice to advertise terms and not honor them, Branch Manager, terminated the application process and I advised that I would file a complaint with CFPB. This complaint serves as that promise and to outline the illegal activity this financial institution is undertaking.
Company Response:
State: VA
Zip: XXXXX
Submitted Via: Web
Date Sent: 2023-03-21
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-03-21
Issue: Trouble during payment process
Subissue:
Consumer Complaint: I have two mortgages ... the first mortgage is up to date and the 2nd mortgage is in bankruptcy, Citizens Bank is taking my first mortgage payment and applying it to my 2nd mortgage that is in bankruptcy and I have made them aware several times. Now they are holding over {$3000.00} as Unapplied.
Company Response:
State: IL
Zip: 60188
Submitted Via: Web
Date Sent: 2023-03-21
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-03-19
Issue: Improper use of your report
Subissue: Reporting company used your report improperly
Consumer Complaint: According to 15 USC 1681 Citizens Home Loan has violated my federally protected rights to privacy and confidentiality. 15 USC 1681 602 ( a ) ( 4 ) states I have a right to privacy. 15 USC 1681 604 ( a ) ( 2 ) states consumer report ing agency can not furnish an account without written instruction. 15 USC 1681 605 ( a ) ( 5 ) states any adverse items of information, other than records of convictions of crimes which antedates the report by 7 years. 15 USC 1681 623 ( a ) ( 1 ) ( A ) and ( B ) Duty of furnishes of information to Provide Accurate information. A person shall not furnish any information relating to a consumer to any consumer reporting agency if the person knows or has reasonable cause to believe that the information is inaccurate, and can not continue to report after notice and confirmations of errors. 15 USC 1681 603 ( 2 ) ( I ) states consumer report does not include information solely as to transactions or experiences between the consumer and the person making the report.
Company Response:
State: CT
Zip: 067XX
Submitted Via: Web
Date Sent: 2023-04-17
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-03-19
Issue: Problem with a lender or other company charging your account
Subissue: Transaction was not authorized
Consumer Complaint: On XXXX XXXX Citizens bank offset a business loan debt from my personal account ending in XXXX. Citizens bank took {$3000.00} that was sent to me from a family member to pay my mortgage and applied it to a business loan for an LLC. The business is a Limited Liability Corporation and I did not give Citizens bank permission to use funds from my personal account to pay the debt. I have a business account that is attached to the loan via my XXXX number. My personal funds are protected by the veil of the Limited Liability Corporation. Just because the business owes a debt, the LLC origination protects the companies members. The business is not set up as a Sole Proprietorship so the offset was illegal. I will be filing a complaint with the FTC as well as the attorney generals office. I feel that the bank overstepped their authority and enforced an illegal tactic to steal money from a personal account. I am demanding that the funds are deposited immediately as this has caused a significant hardship on my family. If any fees are accessed during this process, I will be seeking legal action to recoup the fees as well. This is an abuse of power and trust and I will no longer be doing business with Citizens bank and I will be informing all of my network of Citizens Banks greedy practices
Company Response:
State: DE
Zip: 19709
Submitted Via: Web
Date Sent: 2023-03-19
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-03-19
Issue: Applying for a mortgage or refinancing an existing mortgage
Subissue:
Consumer Complaint: on XX/XX/XXXX sat with a XXXX XXXX the Commerical morgtage representativeve from citizens bank and needed to apply for a construction to build a second home in XXXX NC I explained to him that i just purchase a property in XXXX nc which had a small house on it and was tearing it down to build a new bigger home. I submitted a Hud settlement sheet to show the purchase along with all other documentation he requested. After 8 weeks i was denied the loan because the underwritter saw that it was a construction loan to a construction loan which was clearly seen on the Hud settlement paperwork which was submitted 8 weeks earlier. Prior to receiving my denial letter which was dated on XX/XX/XXXX XXXX XXXX reached out and asked me on XX/XX/XXXX for the {$540.00} appraisal fee. I asked why i am paying for a appraisall fee when there was no house on this lot ( was removed on XX/XX/XXXX ) XXXX XXXX said it was part of the process. Citizens bank went ahead and debited my account {$540.00} on XX/XX/XXXX. My question to XXXX was if i was denied the loan on XX/XX/XXXX then why did citizens remove the funds from my account on XX/XX/XXXX I have reached out to XXXX and his boss XXXX to get my {$540.00} put back into my account as of this email i have yet to hear from both parties on this matter also to this date i have not received any copy of a appraisal that i paid for. I feel XXXX XXXX knew from the start that this would be denied but wanted to make his application numbers work for him in the first quarter of the year and continued to go down this road for quotor purposes
Company Response:
State: RI
Zip: 029XX
Submitted Via: Web
Date Sent: 2023-03-19
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-03-18
Issue: Incorrect information on your report
Subissue: Account status incorrect
Consumer Complaint: Dear Consumer Financial Protection Bureau, I am writing to file a complaint against Citizens Bank for inaccurately reporting two late payments on my credit report. Despite making my payments on time, Citizens Bank has reported me as being late for the months of XXXX and XXXX, and this has significantly impacted my credit score. I have attempted to resolve this issue by contacting the company three times, but have received no assistance in rectifying the situation. The representatives I spoke with informed me that they would call me back, but I never received any follow-up communication from them. As a consumer, I demand that Citizens Bank comply with the Fair Credit Reporting Act ( FCRA ) and immediately fix this issue on my credit report. I also request that they provide documentation supporting the late payments they have reported, as I have no record of being late with my payments. I urge you to take swift action to ensure that Citizens Bank is held accountable for their inaccurate reporting and failure to assist me in resolving this matter. Thank you for your attention to this issue.
Company Response:
State: WA
Zip: 98004
Submitted Via: Web
Date Sent: 2023-03-18
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A