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Business Profile

Bank

The Federal Savings Bank

Headquarters

Complaints

This profile includes complaints for The Federal Savings Bank's headquarters and its corporate-owned locations. To view all corporate locations, see

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The Federal Savings Bank has 26 locations, listed below.

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    Customer Complaints Summary

    • 62 total complaints in the last 3 years.
    • 19 complaints closed in the last 12 months.

    If you've experienced an issue

    Submit a Complaint

    The complaint text that is displayed might not represent all complaints filed with BBB. Some consumers may elect to not publish the details of their complaints, some complaints may not meet BBB's standards for publication, or BBB may display a portion of complaints when a high volume is received for a particular business.

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    Complaint status

    Complaint type

    • Initial Complaint

      Date:05/29/2025

      Type:Billing Issues
      Status:
      AnsweredMore info

      Complaint statuses

      Resolved:
      The complainant verified the issue was resolved to their satisfaction.
      Unresolved:
      The business responded to the dispute but failed to make a good faith effort to resolve it.
      Answered:
      The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
      Unanswered:
      The business failed to respond to the dispute.
      Unpursuable:
      BBB is unable to locate the business.
      The Federal Savings Bank in **********, ** will not stop harassing me about refinancing a loan. I don't even have a loan, and have informed them several times. Whenever I ask them to stop calling or tell them that I do not have a loan, they hang up on me. They will not stop harassing me and I want them to put me on their DO NOT CALL list.

      Business Response

      Date: 06/03/2025

      Please see attached.
    • Initial Complaint

      Date:05/21/2025

      Type:Billing Issues
      Status:
      AnsweredMore info

      Complaint statuses

      Resolved:
      The complainant verified the issue was resolved to their satisfaction.
      Unresolved:
      The business responded to the dispute but failed to make a good faith effort to resolve it.
      Answered:
      The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
      Unanswered:
      The business failed to respond to the dispute.
      Unpursuable:
      BBB is unable to locate the business.
      2nd mortgage with ***. Before my 1st payment was due, they sold the mortgage to a scam company. I called this company and they said they were a debt collection company and they refused to answer my questions and hung up on me. I contacted ***, first regarding them selling my mortgage without my knowledge. Also, my winter taxes (about $25) was due to *** said (and closing documents prove it) that they were going to pay my taxes. They never did. Now I had to pay penalties. *** never responded to either of my emails regarding these issues. I will never trust this company and no I am getting a different loan through my own bank to pay off this scam company that *** sold my mortgage to. The company they sold to is ********** and you only have to read the reviews on ********** to know - or call them and they will tell you that they are debt collection company. I asked if they deal in mortgages and was told "we are a debt collection company". Also, *** sent me a letter that my 1st payment should be paid to them but Shellpoint sent me a letter that I received the same day stating that my 1st payment should be paid to **********. Done with this. Also - while getting the 2nd mortgage, I was working with one person, then all of a sudden I was working with someone else on refinancing my 1st mortgage which I didn't want to do. What a mess. Of all companies they could have sold my mortgage to - *** chose this *************** company. And 1st payment - I made one to both *** and ********** and *** said they would forward the payment on to ********** but haven't. Where are they putting all my money?? Where are my tax monies that they were suppose to pay and the documents show the funds came out of the loan??

      Business Response

      Date: 06/10/2025

      Please see attached.
    • Initial Complaint

      Date:05/07/2025

      Type:Product Issues
      Status:
      AnsweredMore info

      Complaint statuses

      Resolved:
      The complainant verified the issue was resolved to their satisfaction.
      Unresolved:
      The business responded to the dispute but failed to make a good faith effort to resolve it.
      Answered:
      The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
      Unanswered:
      The business failed to respond to the dispute.
      Unpursuable:
      BBB is unable to locate the business.
      I paid for a appraisal that I never got, and they refuse to refund my money

      Business Response

      Date: 05/30/2025

      Please see attached.
    • Initial Complaint

      Date:04/14/2025

      Type:Billing Issues
      Status:
      AnsweredMore info

      Complaint statuses

      Resolved:
      The complainant verified the issue was resolved to their satisfaction.
      Unresolved:
      The business responded to the dispute but failed to make a good faith effort to resolve it.
      Answered:
      The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
      Unanswered:
      The business failed to respond to the dispute.
      Unpursuable:
      BBB is unable to locate the business.
      i was getting a loan they went up on closing cost and i would not continue with loan they took a $500.00 off my credit card for a apprasial was told they was keeping ***** for credit check ending up refunding 183 and keep the rest

      Business Response

      Date: 04/18/2025

      Please see attached.
    • Initial Complaint

      Date:03/30/2025

      Type:Billing Issues
      Status:
      ResolvedMore info

      Complaint statuses

      Resolved:
      The complainant verified the issue was resolved to their satisfaction.
      Unresolved:
      The business responded to the dispute but failed to make a good faith effort to resolve it.
      Answered:
      The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
      Unanswered:
      The business failed to respond to the dispute.
      Unpursuable:
      BBB is unable to locate the business.
      On 12 March 2025, I spoke with an agent at The Federal Savings Bank to maybe get an equity loan. The Agents name was ******. The Agent said that he would get some numbers together and contact me more before we pulled a credit report. At no time did I authorize him to pull my credit. He said that there would be a $150.00 app fee and that I may need a home appraisal. Then next thing I know, I get some notifications that my credit has been pulled. Then I got an email saying to pay $510.00 which I thought was for the app fee and the appraisal. I paid for it by credit card on the 12th of March. Then on the morning of the 13th, I email ****** back and cancelled the loan process. He said he would initiate a refund. Then weeks later I get a refund for only $155.00. No appraisal was done and again I never authorized a credit check. So they kept all of my funds except for $155.00. This is not the first time that The Federal Savings Bank has done this as there are other customers that had the same experience. I cancelled the loan process the very next morning so I feel like they should have refunded everything except for maybe the app fee which was $150.00. So this company did nothing for me. I never authorized a credit check, a appraisel was never done, so really I paid $510.00 for no reason. I did contact the agent again and he said that he contacted the finance department with his company The Federal Savings Bank and that there was nothing else they could do so they kept my funds for no reason. I did file a credit card dispute with my credit card company and the charge was credited back to me but then later, it was charged back to my credit card. I feel this company took advantage of me and looking into the history of this company, looks like I am not the only one that has had the same issue. Other people are complaining about the same issue I had of this company pulling credit reports without authorization. This was not right and I feel that I should have gotten the funds

      Business Response

      Date: 04/08/2025

      Please see attached.

      Customer Answer

      Date: 04/09/2025

       
      Better Business Bureau:

      I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution is satisfactory to me.

      Sincerely,

      **** ********
    • Initial Complaint

      Date:03/25/2025

      Type:Product Issues
      Status:
      AnsweredMore info

      Complaint statuses

      Resolved:
      The complainant verified the issue was resolved to their satisfaction.
      Unresolved:
      The business responded to the dispute but failed to make a good faith effort to resolve it.
      Answered:
      The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
      Unanswered:
      The business failed to respond to the dispute.
      Unpursuable:
      BBB is unable to locate the business.
      We completed an application for a cash out refinance mortgage on February 24, 2025. I worked with ****** ******** (NMLS ID# ****** and advised him that my boyfriend was not on my home title. I asked if we should wait until we were married and then add him to my title. Mr. ******** advised that this was not necessary as an *** loan did not require both borrowers to be on the title. The loan progressed and I shared all title and necessary documents. We received conditional approval for the loan. Mr. ******** never mentioned the title until we were fully engaged in the final loan approval step. On March 19, ***** ***** advised that the underwriters needed a few more items to approve the mortgage. Again, adding my boyfriend to the title was NOT mentioned at this time or at any previous time. On March 24th, Mr. ******** advised that the loan could not proceed unless my boyfriend was added to the title. I feel that Mr. ******** committed loan fraud by withholding crucial information that would have deterred me from applying for the loan/mortgage. I have incurred financial costs due to Mr. ********** fraud. I am requesting a full refund from The Federal Savings Bank (Amount Paid: $835.00 Date Paid: March 4, 2025 Transaction ID: *************

      Business Response

      Date: 04/08/2025

      Please see attached.

      Customer Answer

      Date: 04/09/2025

       
      Complaint: 23112711

      I am rejecting this response because:  Mr. ******** never told me that Mr. ****** needed to be added to the title.  In fact, just the opposite.  He said that he would NOT be required to be added.  I would NOT have proceeded had he given me the correct information.  IN addition, Mr. ******** failed to tell me that we needed to have a foundation inspection (and his supervisor personally called me to apologize that Mr. ******** had made such a basic mistake!).  This case has been filed with the appropriate government agencies and I have been assured that they will be looking very closely at the Federal Savings Bank misconduct.  I am deeply troubled that such a financial institution exists and that they are not being held accountable for this mortgage fraud!

      Sincerely,

      ******* *******

      Business Response

      Date: 04/11/2025

      Please see attached response.

      Customer Answer

      Date: 04/14/2025

       
      Complaint: 23112711

      I am rejecting this response because ***** ******** did NOT tell me that Mr. ****** would need to be added to the deed.  Everything else that was needed was in writing - show me where he ever stated in writing that this was required.  I regret working with your institution and feel that Mr. ******** committed mortgage fraud.  I will continue to post poor reviews in the hopes that another person is not hurt financially by your dishonest institution.

      Sincerely,

      ******* *******
    • Initial Complaint

      Date:03/11/2025

      Type:Service or Repair Issues
      Status:
      AnsweredMore info

      Complaint statuses

      Resolved:
      The complainant verified the issue was resolved to their satisfaction.
      Unresolved:
      The business responded to the dispute but failed to make a good faith effort to resolve it.
      Answered:
      The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
      Unanswered:
      The business failed to respond to the dispute.
      Unpursuable:
      BBB is unable to locate the business.
      I opened a loan on 1/24. I've been having issues with them to pay taxes on time. When I opened the loan part of the agreement was that I would get and pay my own home insurance. I get a letter on 2/25 asking for insurance. My insurance company had already sent it before my initial insurance was expired. I sent them the whole paperwork stating that the insurance was active and fully paid by me. Later I check my statements and see that they decided to pay my insurance again and now are raising my monthly escrow. I called the company and was told I was in the wrong, and to remediate I would need to call the insurance company to get reimbursed, once I get reimbursed I need to send that money to my mortgage to put in escrow. I told them I sent everything on time and paid everything on time, why do I have to go out my way to resolve an issue that their **** failed to see. I'm not paying additional money to send them a check, aside from that I have spent multiple hours on the phone for issues on taxes as well. I just recently receive a letter from the county that taxes were paid late and I owe interest and needs to be paid **** to avoid foreclosure. I have paid my mortgage on time and have a good credit score based on having no late payments. This company has been an issue ever since I started the loan with them. Every time I call customer support, they make it seem like I was the one who made a mistake and they are being compliant.

      Business Response

      Date: 04/01/2025

      Please see attached.
    • Initial Complaint

      Date:02/21/2025

      Type:Product Issues
      Status:
      AnsweredMore info

      Complaint statuses

      Resolved:
      The complainant verified the issue was resolved to their satisfaction.
      Unresolved:
      The business responded to the dispute but failed to make a good faith effort to resolve it.
      Answered:
      The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
      Unanswered:
      The business failed to respond to the dispute.
      Unpursuable:
      BBB is unable to locate the business.
      They took money from me for an appraisal on a veterans mortgage and then did not provide a mortgage. I paid so that I could get a mortgage from them and they did not perform. They promised to keep me informed and they did not.

      Business Response

      Date: 03/10/2025

      Please see attached.

      Customer Answer

      Date: 03/11/2025

       
      Complaint: 22973808

      I am rejecting this response because: there is no resolvement. They say sorry but you aggreed to the fee.  The fact that we did not do what we agreed to does not affect the money received.. They work with and take advantage of veterans like me. 

      Sincerely,

      **** ******

      Business Response

      Date: 03/17/2025

      Please see attached.

      Customer Answer

      Date: 03/17/2025

       
      Complaint: 22973808

      I am rejecting this response because they didn't complete the transaction as agreed upon. They told us they could complete the loan. They had all the info needed beforehand to make a determination. They put language in the agreement to protect them in case they don't perform. They asked for money when they knew they could not perform or they did not do due diligence on the info they had. They are taking advantage of Veterans. This is a VA loan and they had all the info from me before they asked for the money.  So this was taking advantage of Veterans.



      Sincerely,

      **** ******

    • Initial Complaint

      Date:02/18/2025

      Type:Order Issues
      Status:
      AnsweredMore info

      Complaint statuses

      Resolved:
      The complainant verified the issue was resolved to their satisfaction.
      Unresolved:
      The business responded to the dispute but failed to make a good faith effort to resolve it.
      Answered:
      The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
      Unanswered:
      The business failed to respond to the dispute.
      Unpursuable:
      BBB is unable to locate the business.
      Federal Savings is the mortgage holder of my property in *********, ** and is responsible for the escrow account and the disbursement of the funds to pay the taxes and insurance on the property. On multiple occasions, they have failed to pay the insurance leaving the property uninsured and have failed to pay the taxes on time leaving the property designated as tax delinquent. I provided them the notice of error on 2-3-25 for the failure to pay the taxes on the property, and I provided them the notice of error for failing to pay the homeowners insurance in April of 2024. It took months to correct insurance payment failure and I had to make self payments to the insurance company to keep the property insured even though there was funds in the escrow account for those payments. I am currently waiting for a resolution to the unpaid taxes. They currently have my account designated as overdue even though I paid the same amount as always on Feb 1 of 2025. I think a third party audit of the entire account from closing to current is needed.

      Business Response

      Date: 03/18/2025

      Please see attached.

      Customer Answer

      Date: 03/19/2025

       
      Complaint: 22957589

      I am rejecting this response because: There has been no progress, the taxes are still delinquent.  This is not the first time the escrow account has been incorrectly distributed, on multiple occasions my property has been uninsured.  One time it was left uninsured for over 6 months and when I finally notified them I was required to find a new insurance company and paid a higher rate because the property was uninsured for so long.  I don't believe the loan has been serviced correctly, and I want a third party review of the entire mortgage from closing to current.   See the attachments, tax bill and one of the invoices sent to me.  The invoice shows the incorrect property address, they don't even know what property they hold the mortgage for, I can't imagine they have been servicing the loan in a correct manner.  

      Sincerely,

      ****** *******

      Business Response

      Date: 03/21/2025

      Please see attached.
    • Initial Complaint

      Date:02/11/2025

      Type:Service or Repair Issues
      Status:
      AnsweredMore info

      Complaint statuses

      Resolved:
      The complainant verified the issue was resolved to their satisfaction.
      Unresolved:
      The business responded to the dispute but failed to make a good faith effort to resolve it.
      Answered:
      The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
      Unanswered:
      The business failed to respond to the dispute.
      Unpursuable:
      BBB is unable to locate the business.
      On or around 1/25/2024 I applied to refinance my home through The Federal Savings Bank, spoke with ****** *******. After all the run around sending info after info she told me I was approved and all I had to do was pay $760, paid on 1/29/2024, appraisal fee, which she told me the $760 was refundable if loan was not approved. I paid appraisal fee and had the house appraised. Which during the time I had a HELOC on my home and she also told me not to worry about that payment, cause I was already approved for refinancing on the home. Therefore that ***** went delinquent for no payment and I was a month behind and it was noted on my application. On or around 3/4/2024 my application was denied due to nonpayment on the ****** which at the time she already told me I was approved for the refinancing. I therefore had to catch payment up on my ****** which I am current now. All I am asking for is the $760 appraisal fee reimbursed back to me.

      Business Response

      Date: 02/19/2025

      Please see attached.

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