Complaints
This profile includes complaints for Colonial Savings, F.A.'s headquarters and its corporate-owned locations. To view all corporate locations, see
Customer Complaints Summary
- 40 total complaints in the last 3 years.
- 5 complaints closed in the last 12 months.
If you've experienced an issue
Submit a ComplaintThe 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.
Initial Complaint
Date:05/02/2024
Type: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 closed on a house Friday, April 26th and wires were funded Monday, April 29th with the amount stipulated per the payoff document that Colonial provided with estimated escrows through May 9th. I called to confirm receipt of wire and payoff status on Monday 29th and was unable to speak with someone that day due to their seemingly ongoing problems with their call system. I tried again the morning of Tuesday the 30th and still could not get a hold of anyone. I contacted a local branch and the person I spoke with told me they did not have any capability to service loans from a branch. I followed up that afternoon with one last call to mortgage services and again could not get someone on the phone. I confirmed with my mortgage broker on April 30th and escrow officer on May 1st that since the loan was paid off I should not have a May 1 autopayment deducted from my account, but on the morning of May 1 at about 10:00 am I saw the payment was auto drafted from my account. I called the ********************** services number again and within 15 to 20 minutes remarkably had someone answer the phone, previous calling efforts had me waiting for up to 45 minutes before I gave up. On the phone they were unable to confirm why the payment was deducted and provided little comfort that they could return the money quickly. This person didn't seem to have any understanding of what was happening or how to correct it. I called my bank afterwards and was unable to put a stop on the pending draft from my bank's side so opted to file a fraud claim with my banking institution since it appears that Colonial has a terrible track record of costing customer's real dollars. I still do not know why they failed to process a loan payoff upon receipt and have no clarity as to when they will return the money that was stolen from me this morning.
Business Response
Date: 05/15/2024
We have received your recent correspondence in our office on *** 2, 2024. It is our goal to provide excellent customer service, and we sincerely apologize that our service did not meet ******************** expectations. After reviewing the account, we have prepared the following response.
Our records indicate that ***************** was previously enrolled in a recurring monthly draft, with payments being drafted on the 1st of each month. Payment requests are sent to the borrower's financial institution two business days before the draft occurs.Therefore, any changes to the drafting plan must be made at least two business days before the next scheduled payment.
Colonial received payoff funds via wire on April 30, 2024, at 2:37 p.m., and the loan was paid in full.Although the borrower's mortgage broker and escrow officer advised that *** 1,2024, should not be deducted, Colonial did not receive a request directly from the borrower to cancel the draft.
Since the draft was not canceled by the borrower at least two business days prior to the next draft of *** 1, the payment was processed on *** 1, 2024, for $5,019.48. When the payoff was received on April 30, 2024, the payment was already in process with ******************* financial institution and could not be stopped. On *** 6, 2024, the payment was returned unpaid by the borrower's financial institution and reversed from the account. We have enclosed a payment history for your review.
Please feel free to contact us with any additional questions. Our representatives can be reached Monday through Friday, 8:00 a.m. to 5:00 p.m. CT, at **************.Initial Complaint
Date:04/23/2024
Type: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 changed their online portal then charged me late fees for not being able to pay on time. additionally changed my mortgage amount by $300 without notice.Business Response
Date: 05/09/2024
We have received your recent correspondence in our office on ***** 25, 2024. After reviewing the account, we have prepared the following response.
Our records show that an Escrow Analysis was completed on October 18, 2023. Due to an escrow shortage, ************* payment increased from $1,205.04 to $1,570.05, effective January 1,2024. The enclosed statement was generated on October 18, 2023, and was mailed to the borrower.
************** made the ***** 2024 payment on ***** 23, 2024. Please note that Colonial has recently undergone a system conversion, and as a result, no late charges were assessed to our borrowers for ***** if payment was received outside the grace ******* We have enclosed a payment history for your review.Please feel free to contact us with any additional questions. Our representatives can be reached Monday through Friday, 8:00 am to 5:00 pm CT, at **************.
Sincerely,
Customer Advocacy TeamInitial Complaint
Date:04/15/2024
Type: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.
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.
Regards,
*********************** and after being on hold for 1 hr 44 mins spoke to ****** who said my 1098 would be emailed to me and I would receive it within 24 hours. After I didn't receive it in that time frame I called back on 4/10 and spoke to ****** again after being on hold for 1 hr 55 mins. She said she would try to have it expedited and placed me on hold. After being on hold for another 18 mins the call was disconnected. I called back again and after being on hold for 1 hr 38 mins spoke to a different extremely rude customer service person. She told me there was nothing she could do to help me and that I would hopefully receive it by Friday. I asked what I was supposed to do if I didn't receive it by then, as taxes are due Monday. She told me that that was my problem to deal with and it was my fault because I waited until the last minute to do my taxes and that "You should've done them in February or March." As of Friday 4/12 I have still not received my 1098 and am unable to complete my taxes.Business Response
Date: 04/26/2024
We have received your most recent correspondence in our office on April 15, 2024. After reviewing the account, we have prepared the following response.
On January 15, 2024, Colonial mailed the 1098 Mortgage Interest Statement for 2023 to *********************************************. However, it was returned undelivered on February 12,2024.
Upon receiving the complaint on April 15, 2024, Colonial emailed a copy of the 1098 Mortgage Interest Statement for 2023 to the email address on file, ************************ also attempted to contact the borrower at ************ and were unable to make contact.
************** spoke to a representative on April 9, 2024, and April 10, 2024, and requested that the 1098 be emailed. This request was fulfilled on April 16, 2024. Colonial responded to the secure messages the borrower sent on April 8, 2024, and April 10, 2024, on April 18, 2024.
Colonial has recently undergone a system conversion, resulting in a higher than normal volume of calls and longer wait times for borrowers. The primary customer service line, ************,experienced intermittent outages due to an external carrier issue, which was resolved on April 8, 2024. To assist borrowers during the intermittent outages,Colonial created a dedicated phone line, ************, which was communicated on our website and through email.
Colonial acknowledges that the *** email did communicate that the 1098 would be available within the document section of the new servicing platform. Unfortunately, that was not possible.The new servicing platform will only house documents issued to the borrower after April 1, 2024.
Colonial understands the value of our customers' time and aims to provide excellent customer service. We are working to reduce wait times and assist every caller as efficiently as possible. We apologize for any frustration or inconvenience this may have caused **************.
Please feel free to contact us with any additional questions. Our representatives can be reached Monday through Friday, 8:00 am to 5:00 pm CT, at **************.
Sincerely,
Customer Advocacy TeamInitial Complaint
Date:04/12/2024
Type: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.
The company my original home loan was with sold the loan to Colonial Mortgage around 12/2020. The payment portal via Colonial Mortgage's website worked fine up until March of 2024 when they rebuilt their website. Post rebuild, customers had to set up a new account login using their last name, SSN, and loan account number. When I went to set up a new account login per their instructions, it did not recognize my name and SSN but it did recognize my wife's. So I set up an account using her info and then went to set up a payment account to make my monthly payment. Unfortunately, their website only allows accounts with my wife's name on them to pay as her name is hard coded into any and all payment account name fields. I am unable to pay from my personal checking account which I have been doing with this company for the past 3.5 years w/o issue. Emails to their customer service go unanswered. Similarly, calling their customer support line ends up being 1 to 2 hours of hold time. When you do get through to a human, they are unable to help with the issue or they simply disconnect you. Someone needs to hold this company accountable for making it nearly impossible to pay them for your home loan.Business Response
Date: 04/24/2024
Colonial recently completed a system conversion, resulting in a higher than normal volume of calls and longer wait times for our borrowers. We apologize for any inconvenience this may have caused and are working diligently to reduce wait times and efficiently assist every caller. We understand the value of our customers' time and strive to provide excellent customer service.
********************** also launched a new mortgage servicing platform at that time, which experienced a technical issue where it recognized only the primary borrower information when registering an account. Please note that this issue has been resolved, and **************** successfully registered his account on the new servicing platform using his name and social security number on April 15,2024. When a payment source is added, the website will automatically default the name on the bank account to the name of the borrower under whom the registration is under. Our records currently show a checking account that is linked to ******************** online account.
An Associate spoke to **************** on April 18, 2024, and responded to the secure message sent under the primary borrowers account on April 19, 2024. A formal written response will be sent to **************** regarding his April 12, 2024 email.
Please feel free to contact us with any additional questions. Our representatives can be reached Monday through Friday, 8:00 am to 5:00 pm CT, at **************.
Sincerely,
Customer Advocacy TeamInitial Complaint
Date:04/08/2024
Type: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 have been trying to reach someone at Colonial Mortgage for well over a week. Calls aren't going thru or they leave you on hold and never pick up - we have waited well over an hour. There is a missing escrow overage check that needs to be tracked but there is no way to reach a representative. Quite concerning and suspect. There needs to be a way to speak with someone handling mortgages.Business Response
Date: 04/17/2024
We have received your most recent correspondence in our office on April 8, 2024. After reviewing the account, we have prepared the following response.
According to our records, a check of $421.49 was issued to Mr. ******* on June 16, 2023, as an escrow overage payment. However, the check was not cashed, and the funds were deposited back into the borrower's escrow account on December 14, 2023. We have attached a payment history for your review.
Mr. *******'s annual escrow analysis is scheduled for June 2024. If there is a surplus in the escrow account, it will be released at that time.
Colonial has recently undergone a system upgrade, which has resulted in a large number of calls and longer wait times for our customers. Colonial apologizes for any inconvenience this may have caused and is working diligently to reduce wait times and efficiently assist every caller. We understand the value of our customers time and strive to provide excellent customer service. We attempted to contact Mr. *******;however, a voice message was left at ************ as we could not reach him.
Please feel free to contact us with any additional questions. Our representatives can be reached Monday through Friday, 8:00 am to 5:00 pm CT, at **************.
Sincerely,
Customer Advocacy TeamInitial Complaint
Date:01/25/2024
Type: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.
Complaint: 21193554
I am rejecting this response because:The business has been inconsistent with their communication and is refusing to acknowledge the entire foundation of my complaint: *that the payments were missed due to their own negligence and system flaws that prevented me from receiving the information and service I needed to complete the forbearance application process!*
I have broken this down already, but these are the facts that are not being acknowledge by the business:
1) I initially applied for forbearance via the businesses secure online website. Upon doing so, the website indicated that the application was received - and that I should be receiving relevant correspondence acknowledging my forbearance submission. I NEVER RECEIVED ANY CORRESPONDENCE - A CLEAR FLAW IN THE SYSTEM, EITHER THEIR WEBSITE DID PROPERLY ACCEPT/PROCESS THE APPLICATION DESPITE SHOWING IT WAS RECEIVED OR NEGLIGENCE BY THE ***** FOR NOT FOLLOWING UP ON MY SUBMITTED APPLICATION.
Once weeks passed of not receiving any follow up correspondence, I became weary. This is when I began to attempt to contact the Colonial staff via phone, and was not able to connect on roughly 10 occasions. **** later acknowledged that "they've been extremely busy" but did not address any reason for why my phone calls to the 1800 number we repeatedly disconnected. THE **** THAT THESE SEVERAL CALL ATTEMPTS WERE NEVER ANSWERED AND THE CORRESPONDENCE WAS NEVER RECEIVED MADE IT IMPOSSIBLE FOR ME TO GAIN ANY INFORMATION REGARDING MY APPLICATION PROCESS. I COULD ONLY ASSUME THAT IT WAS RECEIVED AND ALL GOOD SINCE I DID NOT RECEIVE ANY MESSAGES STATING OTHERWISE. THIS IS WHAT CAUSED THE MISSED PAYMENTS -ANOTHER SYSTEM FLAW BY COLONIAL which leads to my next point...
2) There has been absolutely no explanation or acknowledgement as to why so many of my calls to customer service were disconnected. The assumption that can be made was there was a system failure potentially tied to the influx of calls due to the pandemic. **** acknowledged the high volumes and being short staffed, but did not directly answer my questions on why i was not able to connect within their phone system so many times. -THEIR PHONE CALL DELIVERY SYSTEM FAILED. I CALLED 10 TIMES AS PROVEN IN THE CALL LOGS AND UNABLE TO CONNECT WITH ANYBODY, BEING DISCONNECTED EACH TIME, A CLEAR FAILURE IN THEIR CALL TAKING CAPACITY.
Once my credit was decimated I was finally able to connect with a Supervisor by the name of ******** who listened to my complaint. She did not address any of the system failures mentioned above. She stated that if I could send her an official call log from my mobile provider illustrating all of my call attempts, then she would be able to potentially build a case with leadership that I should not be held liable for the missed payments since the business failed to communicate with me. She asked me to send it to 'Document Intake *************************************'
SUBJECT: LOAN # ATTN ********
Upon sending these to her, I never received any correspondence back which highlights THE THIRD INCONSISTENCY AND FAILURE - ******** NEVER ACKNOWLEDGED RECEIPT NOR PROPOSED THE ADJUSTMENT WE DISCUSSED TO LEADERSHIP, which leads me to:3) There is an inconsistency from the business in stating that the documentation shared with ******** was never received until this BBB complaint. That is not an accurate statement. The requested phone log was delivered in the exact manner specified above. I never received an email response. I called three different times and asked to connect with ******** to ensure the email was reviewed. Each time a staff member told me she was either out or on another call and would call me back. She never called me back. THIRD FAILURE - ******** DID NOT HONOR OUR CONVERSATION TO CONSIDER MY PERSPECTIVE OF NOT BEING ABLE TO CONNECT WITH THE **** FOR WEEKS DESPITE MY BEST EFFORTS, WHICH PREVENTED ME FROM KNOWING THAT MY APPLICATION WAS NOT BEING PROCESSED, THUS, MISSING PAYMENTS DUE TO COLONIAL NEGLIGENCE.
These three reasons above are why I felt it was necessary to file a formal complaint here, as well as considering additional legal options.
I would like Colonial to review all the data in this case, admit fault for their failed systems, and update the remarks of my missed mortgage payments which have decimated my credit and taking a toll on my health. Additional action may be necessary if there isn't cooperation, it is incredibly saddening and frustrating that I've had to invest this much time in making things right when clearly there were multiple failures by the business.
Regards,
of getting my hardship request finalized 8 times between 6/7 and 6/15. Since I did not ever receive feedback from them I did not know whether I should assume the hardship request was honored or if more information was needed since this was the first time I've ever made such a request. It was until finally connecting with "****" several weeks after my initial request that he informed me they have been "extremely busy" which is why I had not heard back. Despite this, they still marked my payments as delinquet which destroyed my credit scores - highly unethical given the early communication I had implying that once I filed my hardship request, I would not have to worry about payment be marked as missed. (Since this needs a bit more explanation I have attached the rest of the interactions with ********* and the path to resolution we discussed in the first document which fully highlights the whole story. I have also included the call records that were supposed to resolve the issue.)
*****************************Business Response
Date: 02/06/2024
We have received your most recent correspondence in our office on January 25, ****. Our goal is to provide excellent customer service, and we sincerely apologize that our service did not meet Mr. ********** expectations. After reviewing the account, we have prepared the following response.
Our records reflect that on June 20, 2023, ********************** submitted an incomplete Loss Mitigation application to Colonial seeking help due to unemployment. Following this, Colonial sent a letter to ********************** requesting his two most recent bank statements but received no further documentation. On July 11, 2023, ********************** withdrew his request for assistance, and as a result, the loss mitigation review was closed.Our records do not reflect receipt of an application in May of 2023. It's important to note that borrowers do not receive credit protections when they apply for assistance. Late payments, missed payments, or other defaults on a borrower's account may be reflected on their credit report.
Colonial replied to ************************* online inquiries on May 18, 2023, and June 15, 2023. We informed the borrower that we would waive the late fee for May 2023. We also stated that we are required by the Fair Credit Reporting Act (FCRA) to report accurate information and, hence, cannot make any corrections to the credit report. We have enclosed copies for your review.
********************** claims Colonial communicated that he "would not have to worry about payment being marked as missed." We reviewed all the communication with the borrower from May 2023 to July 2023. We confirmed that the borrower was accurately informed on June 15, 2023, that applying for assistance would not protect his credit. On August 1, 2023, a supervisor requested ********************** provide supporting documentation regarding his unsuccessful phone attempts to obtain the loan status for Colonial to research. However, the information requested was not received until the borrower submitted this complaint. We reviewed ************************** call log and confirmed that the borrower attempted to contact Colonial multiple times. Contact was established on June 7, 2023 and June 15, 2023.
Colonial confirmed receipt of ************************* May 2023 payment on June 19, 2023, and the June 2023 payment on July 11, 2023. However, due to the delay in payments, the account was reported as 30 days past due to the credit reporting agencies for both May and June 2023. After reviewing the matter, we have determined that the loan was reported correctly to the credit reporting agencies, and as such, no correction is necessary for the reporting of May 2023 and June 2023.
Please feel free to contact us with any additional questions. Our representatives can be reached Monday through Friday, 8:00 am to 5:00 pm CT at **************.
Sincerely,
Customer Advocacy TeamBusiness Response
Date: 03/29/2024
We have received your most recent correspondence in our office on March 15, 2024. After reviewing the account, we have prepared the following response.
As explained in our February 6,2024 response, our records show we did not receive a Loss Mitigation application from ********************** in May 2023. However, we received an incomplete application on June 20, 2023. At that time, we sent a letter to ********************** requesting the two most recent bank statements, but no further documentation was received. On July 11, 2023, ********************** withdrew his request for assistance,and as a result, the loss mitigation review was closed.
Please note that borrowers are not provided with credit protection when they apply for assistance. Any late payments,missed payments, or other defaults on a borrower's account may be reflected on their credit report. This information was communicated on the Loss Mitigation Application and in our letter mailed to ********************** on June 20, 2023. Additionally,on June 15, 2023, ********************** was advised both verbally and through a secure message that applying for assistance does not offer credit protection.
Colonial acknowledges that on three occasions (June 7, 2023, June 13, 2023, and June 14, 2023), the borrower called but did not connect with a representative, which is unknown whether it was due to a Colonial system issue. However, contact was established with the borrower on June 7, 2023, and June 15, 2023. Our records also reflect that ********************* spoke to a supervisor on August 1, 2023, where he relayed his concerns in reaching out to us. The supervisor asked that he send proof of call logs for further review but made no promises about fixing the credit.
The borrower was reported as 30 days past due to the credit reporting agencies for both May and June 2023 due to late payments. Colonial has an obligation and duty to provide accurate information to the credit reporting agencies under the Fair Credit Reporting Act (FCRA). Unfortunately, we are unable to honor Mr. ********** request for a credit correction as this is an accurate representation of how funds were received. We have enclosed a payment history for your review.
Please feel free to contact us with any additional questions. Our representatives can be reached Monday through Friday, 8:00 am to 5:00 pm ** at **************.
Sincerely,
Customer Advocacy TeamInitial Complaint
Date:01/12/2024
Type: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 never recieved my escrow check to pay my taxes. I call 6 times. The first 3 times they told me that the check was sent out on the 11th of December and then 4th time i call they said the check had been sent out on the 20th of December and to wait another week. The 5th time i call i told them to cancel the original check and issue me a new one and have it overnighted. They said they would and it would come to me the following week on Wednesday January 10th. So on January 10th no check. Called the for the 6th time and they said that the check should be here in a few days. From the being told it was sent out on the 11th of December to the 11th of January is 1 month. I think i have been more then patient. I took money out of my savings that was going to be used for a vacation that i had to cancel. I am SO disgusted with Colonial Savings. The amount of money out of my saving was $2025.26Business Response
Date: 01/25/2024
We have received your most recent correspondence in our office on January 12, ****. Our goal is to provide excellent customer service, and we sincerely apologize that our service did not meet Mr. ******** expectations. After reviewing the account, we have prepared the following response.
According to our records, ********************* taxes are due in December every year. Checks are made payable to the borrower and Waupaca County and mailed to the mailing address on file.
On December 5, 2023, Colonial issued a check for $2,346.60 to cover the borrower's December tax installment.Unfortunately, the check did not print due to a system issue. Therefore, the check was re-issued on December 11, 2023 and mailed.
On January 5, ****, the borrower requested that the check be re-issued since he had not received it to date. The borrower was advised that the check would be shipped via ***** and delivered no later than January 10, ****. However, it wasnt until January 11, ****, the check was re-issued and printed the next day. Since the check issued on December 11, 2023 was returned undeliverable by the ************* *********** on January 11, ****, it was necessary to obtain confirmation of the correct address, which was provided by ****************** on January 12, ****. The check was mailed via ***** on January 16, ****, and delivered on January 18, **** (Fed Ex Tracking number ************).
We apologize for the delay and any inconvenience this caused *******************
Please feel free to contact us with any additional questions. Our representatives are available Monday through Friday, 8:00 am to 5:00 pm CT, at **************.Sincerely,
Customer Advocacy TeamInitial Complaint
Date:12/18/2023
Type: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.
Colonial Savings has my mortgage loan.- first they are not following my closing loan agreement which is a legal document. They did not pull from escrow the amount decided upon in the closing agreement and now upped my mortgage by over $1000 for this year because they didnt do so. - secondly they have been charging me late fees even though I am on an automatic draft on the first of the month and have never missed a payment - thirdly, I have talked to three reps and the last and they have all been extremely rude. The last one aggressively yelled at me that it is really simple and explained how to close on a house which I understand and thats not the issue at handBusiness Response
Date: 12/29/2023
Our records show that the above-referenced mortgage account originated with an Escrow account for the borrowers hazard insurance and property taxes, due in April and August of each year. At the time of boarding, the tax line was inadvertently set up as a non-escrowed item, which resulted in the borrowers payment decreasing from $1,886.58 to $1,700.03 effective December 1, 2022, and an overage of $1,492.22 was issued to the Schneringers. We have enclosed a copy of the Initial Escrow Disclosure and Escrow Analysis for your review.
In August 2023, Colonial received notification that the borrowers taxes were delinquent for the April installment. A payment of $4,913.66 was disbursed to cover both the April and August installments, and the tax line was updated from non-escrow to escrow.Please note that the penalty amount of $115.91 was paid by Colonial and not charged to the borrower. On September 18, 2023, an annual escrow analysis was completed, and the borrowers payment increased from $1,700.03 to $2,755.44. We are attempting to contact the borrower to provide options to spread out the shortage to reduce the monthly payment.
Colonial reviewed the calls for December 2023 and acknowledges there was a miscommunication regarding a late fee on the account; however, ********************** denies any mistreatment of the borrower. As a courtesy, the late fee in question was waived on December 21, 2023. We have enclosed a payment history for your review.Please feel free to contact us with any additional questions. Our representatives are available Monday through Friday, 8:00 am to 5:00 pm CT, at **************.
Sincerely,
Customer Advocacy TeamInitial Complaint
Date:11/27/2023
Type: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.
There is something shady going on with the escrow shortage analyses at Colonial. In 2021 our escrow shortage was $47.15. In 2022 it was $20.59. In 2023...it is $1,719.62. There have been no drastic changes in our taxes or insurance costs. Virtually nothing has changed except typical yearly increases. I have messaged them on their portal trying to get an explanation. They referred me to their ***** contact line. I wanted something in writing explaining the situation, which is seems like they're trying hard to avoid. I finally called the ***** number and asked for a supervisor as this situation had been going on for too long and needed to be escalated. The representative refused to give me to a supervisor because "they could explain". I then sat on the phone for 40 minutes while the representative spoke in circles claiming, "it's all a projection" and "we were not collecting enough." They threw out several numbers that did not match any numbers I have on paperwork. They said they would re-run the escrow analysis for us and we would receive it in the mail. Two weeks go by and nothing comes in the mail. Now our mortgage is due soon with the new balance including the elevated escrow. My husband called today and got the exact same run around for close to an hour. He asked for the representative to email the explanation to him so he could refer back to it and try to understand. They refused. They also stated that if they re-ran the analysis, it was going to be MORE expensive. It seems to me that they made a major mistake at some point with our escrow account and we are having to pay for it. Why can no one explain this number to us? Why won't they ever explain in writing? How does our escrow shortage go from $20.59 one year to $1,719.62 the next? We are seriously considering pulling our escrow account through them and going with another company. SOMEONE PLEASE EXPLAIN THIS TO ME LIKE I'M FIVE.Business Response
Date: 12/11/2023
The borrowers annual escrow analysis was completed on September 18, 2023, and the payment increased from $969.02 to $1,145.23, effective December 1, 2023. This analysis included an escrow shortage of $1,719.62, which was spread over 12 months. We have enclosed a copy for your review.
The escrow payment is made up of two parts: the monthly escrow deposit and the escrow shortage. We have included detailed explanations of each part below for your review.
Explanation of Monthly Escrow Deposit:
The previous monthly escrow deposit was $265.44 and increased to $298.35. The monthly escrow deposit is calculated by adding up the annual taxes ($2,311.68) and annual homeowners insurance premium ($1,268.53) and dividing by 12 monthly payments ($298.35).
Explanation of Escrow Shortage:
At the lowest point of each projected year, the borrower is required to maintain a two-month escrow reserve; anything above this amount is called an escrow surplus, and anything below that amount is called an escrow shortage and must be collected. The escrow shortage is calculated by taking the lowest balance the escrow account is projected to hit in the upcoming year (-$1,122.92) and subtracting the required low balance ($596.70); that amount ($1,719.62) is automatically spread over 12 months ($143.30). Please note that RESPA allows a projected adjustment for the collection of insurance and tax amounts using the increase in the most recent consumer price index (CPI). The current CPI used for the above analysis explanation is 0.20%.
Explanation of Insurance Premium Increase:
On the prior Escrow Analysis dated September 28, 2022, you can see it was projected that the insurance premium cost would be $948.69, and it was expected to disburse that amount in March 2023. This information is based on the amount paid to Allstate on February 24, 2022, with a coverage period from March 16, 2022 to March 16, 2023.We later received notification that the borrower canceled this policy, and a disbursement totaling $1,266 was issued on October 27, 2022 and November 9,2022, to State Farm for the borrowers new policy with a coverage period of October 9, 2022 to October 9, 2023. A refund should have been issued from Allstate to the borrower for the unused portion of the policy paid in February 2022. We attempted to contact Allstate to obtain the status of the refund check,however, we were unsuccessful since the policy is no longer active. The borrower will need to call ************ in order to obtain the details of the refund.
Explanation of Property Tax Increase:
The taxes are paid out four times per year in June, August, September, and November. The prior Escrow Analysis projected disbursements of $559.15 in September 2022, November 2022, June 2023,and August 2023. However, we disbursed $558.04 in September 2022 and November 2022 and disbursed $579.77 in June 2023 and August 2023. Please be advised that we must pay the amount billed for taxes, and therefore, we use the actual tax payments to project future tax payments. We will not know the tax amounts due until the statements are received from the taxing authority.
The primary reason for the borrower having a shortage is due to the insurance premium being paid twice in February 2022 and October 2022, and the refund from Allstate was not deposited back into the escrow account.
After reviewing the calls from November 2023, Colonial Savings understands that our communication could have been clearer. Our goal is to provide excellent customer service, and we sincerely apologize that our service did not meet the ***** expectations. In the future,if the borrower would like a written explanation or information pertaining to their account, they may send a Request for Information to our ***************************** P.O. Box ****, **********, ** 76101-****. This address is also located on the back of the borrowers monthly billing statement. We attempted to contact the borrower to provide clarification and left a message. The borrowers may call ************ if they would like to discuss the escrow shortage further.
Please feel free to contact us with any additional questions. Our representatives can be reached Monday through Friday, 8:00 am to 5:00 pm CT, at **************.Initial Complaint
Date:11/06/2023
Type: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.
I always pay my mortgage on time everytime because I had auto pay.. problem started when I had to change accounts. I closed an old bank account and updated the portal with new account... for some reason their system didn't not debit from new account and instead debited the old account which was closed. ofcourse this payment was reversed.. I called Colonial and rep helped me make changes to account and set new account as default... come next month their system still debited from the closed account and not the new account... I called again and the rep stated she doesn't know why it did that and she stated she would report it to higher *** to check it out.. she went ahead and had me delete the old account completely and just have the new account on the portal as default. I also requested to speak to a supervisor.. come the next month... their system still tried to debt from old account... am soo furious now as they have deemed me as delinquent and can't do online payments yet their system is the problem... I called several times asking for a supervisor and was told one would call me.. Eventually after 2 days someone called and said she would look into the issue but said she might not be able to remove my probation despite the issue not being me but their system.. She promised to call me back but never did... All these is frustrating and I wish it was easy to change mortgage companies because i would switch in a heart beat... am forgetful and that's why I prefer auto payments which I voiced to them, but nobody seems to want to help.. ***************
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