ComplaintsforColonial Savings, F.A.

• Initial Complaint

  04/08/2024

  Complaint Type:

  Customer Service Issues

  Status:

  Answered

  More info

  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

  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 Team

• Initial Complaint

  01/25/2024

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  I am requesting an update to my mortgage loan payment status be made by Colonial Savings for the month's of May and June 2023. The company has wrongfully reported these two months as missed payments to the credit bureau due to their own negligence and lack of internal communication at the company, which has significantly impacted my credit and well-being. In May of 2023 I submitted a financial hardship forbearance request due to losing my work and having other urgent expenses beyond my control pop up. As I waited for the next steps on my hardship request, I failed to receive the follow up documentation acknowledging my request and for next steps. I reached out to Colonial roughly 10 different times in the proceeding weeks via their *********** phone number and email on their website. There was a clear issue with their phone system as every time I called and a transfer attempt was made, I was disconnected. I have call records from my cellphone provider that proves I called them in hopes 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

  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 Team

  Customer response

  03/13/2024

  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,
  
  *****************************

  

  Business response

  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 Team

• Initial Complaint

  01/12/2024

  Complaint Type:

  Delivery Issues

  Status:

  Answered

  More info

  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 $2025.26

  

  Business response

  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 Team

• Initial Complaint

  12/18/2023

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  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 hand

  

  Business response

  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 Team

• Initial Complaint

  11/27/2023

  Complaint Type:

  Customer Service Issues

  Status:

  Answered

  More info

  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

  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

  11/06/2023

  Complaint Type:

  Customer Service Issues

  Status:

  Resolved

  More info

  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.. ***************

• Initial Complaint

  10/30/2023

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  I received a check for $294.96 for escrow surplus. The check is made out to ******************************* and ********************************* Estate. My husband passed away April 22. 2021. I continued to make the mortgage payments with a check with only my name on it. My bank here in ******** will not cash or deposit the check in my account because there is NO ********************************* Estate. The mortgage company will not issue me a check in my name only or with ******************************* OR ********************************* Estate. They claim that that's their policy, but they refuse to send me a copy of the policy. I have spoken with *********************************, *************) a supervisor in customer service and was told that they would not issue me a check in my name only or to ******************************* OR ********************************* Estate. I left ***** after my husband died and moved to ******** where my two children live. I was told by the mortgage company that I need to pay more money into the escrow account. I complied. Evidently, I must have put too much in the escrow account. I sold the house in *******, ***** and the mortgage was paid off. I feel that the mortgage company owes me $294.96.

  

  Business response

  11/08/2023

  We have received your most recent correspondence in our office on October 30, 2023. It is our goal to provide excellent customer service, and we sincerely apologize that our service did not meet Ms. ********** expectations. After reviewing the account, we have prepared the following response.
  
  On March 27, 2014, the above referenced mortgage account originated under the names of ******************************* and **********************************  Our records indicate that ********************************* passed away on April 22, 2021, which resulted in Colonial updating the names on the account to ******************************* and ********************************* Estate. On August 15, 2023, the mortgage was paid in full, and an escrow refund check in the amount of $294.96 was issued, payable to ******************************* and ********************************* Estate.
  
  After further review, Colonial reissued the check payable to ******************************* or ********************************* Estate on October 31, 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 **************.

• Initial Complaint

  09/21/2023

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  I refinanced my Colonial mortgage loan this summer. My escrow from the old loan was moved to the new loan. Why not, huh? I signed massive documents twice for the closing. This week, my insurance company cancelled me because Colonial didn't pay the premium. Now, they're willing to reinstate me for extra money.I have never heard of a company that would deny paying the insurance company. Now, do I have to worry about my Fall taxes, too? Further, my loan officer and loan processer have been wiped out of the email system so inquiring with them does me no good.

  

  Business response

  10/04/2023

  We have received your most recent correspondence in our office on September 21, 2023. Our goal is 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 show that the above referenced mortgage account originated on June 8, 2023. Colonial Savings acknowledges that due to an incorrect setup of insurance details upon loan boarding, ******************** insurance premium payment was delayed.
  
  Colonial Savings confirmed with the borrowers insurance company that they will still accept the premium payment. On September 27, 2023, the premium payment of $1,114.00 was mailed to Safeco Insurance. In the meantime, we have communicated with ****************** that she must contact her insurance company and provide authorization for the policy to be reinstated. If a lapse of coverage occurs and Lender Placed Insurance coverage is required, Colonial Savings will reimburse the borrowers escrow account for any amounts billed.
  
  Please feel free to contact us with any questions at **************. Our representatives are available Monday through Friday, 8:00 am to 5:00 pm **.
  
  Sincerely,

  
  Customer Advocacy Team

• Initial Complaint

  08/28/2023

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  ON 8/22/2023 I CALLED THEM TO INFORM THEM THAT THEY NEED TO REFUND THE OF $2,477.00 THEY TOOK OUT OF MY ESCROW ACCOUNT, THEY SAID IT WAS PAST INSURANCE FROM LAST YEAR, WHICH I INFORMED THEM THAT THEY ALREADY PAID MY HOME OWNERS INSURANCE LAST YEAR WHICH IS TEXAS FARM BUREAU, AND CAN NOT GO BACK AND RETRO CHARGE FOR INSURANCE ALREADY PAID.. I ASK THEM TO PROVIDE ME PROOF OF SAID INSURANCE FOR $2,477.00 THEY JUST PAID OR REFUND ME MY MONEY, TILL TODAY THEY HAVE NOT REFUNDED ME MY MONEY OR SENT PROOF OF PAID INSURANCE. THIS IS A SYSTEMATIC STEALING OF CUSTOMERS MONEY FROM THEIR ESCROW ACCOUNT AND NEEDS TO BE INVESTIGATED. I BELIEVE THEY HAVE BEEN DOING THIS TO CUSTOMERS FOR A WHILE NOW....THE MONEY WAS TAKING OUT OF MY ESCROW ACCOUNT ON 7/27/2023

  

  Business response

  09/11/2023

  We have received your most recent correspondence in our office on August 29, 2023. 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 show that ************** changed insurance carriers to *********** on August 16, 2022. The new policy did not include windstorm and hail coverage, which is required for the subject property.  ************** was unaware he lacked the required coverage until June 12, 2023. As a result of not having sufficient coverage, on July 31, 2023, Colonial Savings purchased a Lender Placed Policy (***) for the period of August 19, 2022 to August 19, 2023 for $2,477.00. On August 4, 2023, we received policy details for the borrowers windstorm and hail coverage, effective August 4, 2023 to August 4, ****. On August 11, 2023,the *** was canceled, and a refund was issued to Mr. ****** escrow account for $101.80. We have enclosed copies of the *** correspondence and a payment history for your review.
  
  After further review, Colonial determined that an additional refund of $2,375.20 for the *** premium is due to the borrower. We anticipate the refund will be posted within ten business days.We will perform a new escrow analysis once those funds are posted and send a new escrow analysis statement to the mailing address on file.
  
  Please feel free to contact us with any additional questions. Our representatives are available Monday through Friday, 8:00 am to 5:00 pm **, at **************.
  
  Sincerely,
  
  Customer Advocacy Team

• Initial Complaint

  08/02/2023

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  On 8/1 we paid off a home equity line of credit and closed the account. ********************* with Colonial refuses to endorse the insurance check unless we sign it over to Colonial and they will release funds for roof repair after the work is done. This is not acceptable as we owe Colonial nothing and they were on the list of endorsement when the insurance company issued the check for repairs.

  

  Business response

  08/15/2023

  We received your most recent correspondence in our office on August 2, 2023. It is our goal 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.
  
  Per the terms of the enclosed HELOC note, Pursuant to ***** law, we are required to give you the following notice: You have entered into a credit agreement that requires you to maintain insurance for the Property. As part of this Agreement, you are required to: (a)keep the Property insured against damage in the amount the Lender specifies;(b) purchase the insurance from an insurer that is authorized to do business in this state or is an eligible surplus lines insurer; (c) name us as the party to be paid under the policy in the event of a loss; and (d) if required, deliver to us a copy of the policy and proof of the payment of premiums. If you fail to meet any requirement listed above, we may obtain Collateral Protection Insurance on your behalf and at your expense. Upon notice to you as required by applicable law, the amount of such Collateral Protection Insurance will be added to your Loan Account Balance and will be subject to the terms of this Agreement.
  
  Colonial Savings Insurance Draft Procedure requires the following documents before we can release any funds for repairs: an endorsed claim check, an insurance claim report, and a contractor bid. Upon receipt of the required documents, Colonial will release 50% as the initial disbursement and the remaining 50% will be released upon completion of the repairs.
  
  On July 21, 2023, Mr. ******* was advised of the above mentioned procedure. On July 22, 2023, we received a copy of the insurance claim report and the contractors bid, however, the endorsed claim check in the amount of $18,061.69 was not received.
  
  On July 31, 2023, we received a payment of $3,602.54 which reduced Mr. ******* account balance to $0.00. Since the account was still active at that time, an endorsed claim check was required before any funds could be released. On August 2, 2023, Mr. ******* account was closed at his request.
  
  If Mr. ******* requires Colonial Savings assistance with endorsing the claim check, he may mail or bring the check to our Branch located at **************************************************************. Our lobby hours are Monday Friday, 8:30 am to 4:30 pm CT.
  
  Should you have any questions, we are available to assist you Monday through Friday, 8:30 am to 4:30 pm CT by calling **************.
  
  Sincerely,
  
  Customer Advocacy Team
  

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