Loan company paid out someone else's insurance from my account

[sprinks]

What is the name of your state? Florida

In March I received a letter that my monthly payment was going up $350 a month. I logged on and saw a different insurance company and estimate house worth 3x price. I called the new insurance and they had no record of me. I called my insurance agent who said they never changed my insurance and faxed over the doc page to mortgage loan company. Mortgage loan company initially said they didn't know what happened, but they changed my insurance back to my old one - then paid it out even though it wasn't due until end of May.

The next day I logged on to make sure it was the right insurance company, which it was, but my escrow was over $5k in the negative and a new escrow showing the increase of my monthly mortgage,etc up $350 still.

I called back and was told that "it was weird, blah blah" but someone asked if I had a relative with same last name living in my zip code (NO). Seems the other insurance company information for THAT house was "somehow" attached to MY account and they paid this other person's home insurance with MINE. They said wait 2 weeks and a new escrow would be calculated for me and to wait while they got the money back from the other insurance company.
I called daily and nothing had been done. Finally they said wait 3-5 business days. Today I got another escrow with the same information - me being in the hole and my payments going up next month.

I have tried to get in touch with supervisors, I emailed the CFO, emailed people on LinkedIn, emailed the other people with similar names - no one is calling me back. I emailed the Consumer Financial Complaint,gov and no response. Today I was told they DID get the refund back from the other insurance company but they put it in the OTHER person's account and not mine.

What recourse if any do I have at this point. I stopped autopay for May because i am not going to continue overpaying for someone else's account (their house is $699k mine is $188k - been at this same address for over 14 years.

Who can I contact? Who can help with this. Do I need a lawyer to get someone who knows what they are doing to fix this? Do I just wait it out and then be told I'm behind because I am not overpaying my May bill. I am beyond frustrated. Do I just "wait longer"?

 

[quincy]

What is the name of your state? Florida

In March I received a letter that my monthly payment was going up $350 a month. I logged on and saw a different insurance company and estimate house worth 3x price. I called the new insurance and they had no record of me. I called my insurance agent who said they never changed my insurance and faxed over the doc page to mortgage loan company. Mortgage loan company initially said they didn't know what happened, but they changed my insurance back to my old one - then paid it out even though it wasn't due until end of May.

The next day I logged on to make sure it was the right insurance company, which it was, but my escrow was over $5k in the negative and a new escrow showing the increase of my monthly mortgage,etc up $350 still.

I called back and was told that "it was weird, blah blah" but someone asked if I had a relative with same last name living in my zip code (NO). Seems the other insurance company information for THAT house was "somehow" attached to MY account and they paid this other person's home insurance with MINE. They said wait 2 weeks and a new escrow would be calculated for me and to wait while they got the money back from the other insurance company.
I called daily and nothing had been done. Finally they said wait 3-5 business days. Today I got another escrow with the same information - me being in the hole and my payments going up next month.

I have tried to get in touch with supervisors, I emailed the CFO, emailed people on LinkedIn, emailed the other people with similar names - no one is calling me back. I emailed the Consumer Financial Complaint,gov and no response. Today I was told they DID get the refund back from the other insurance company but they put it in the OTHER person's account and not mine.

What recourse if any do I have at this point. I stopped autopay for May because i am not going to continue overpaying for someone else's account (their house is $699k mine is $188k - been at this same address for over 14 years.

Who can I contact? Who can help with this. Do I need a lawyer to get someone who knows what they are doing to fix this? Do I just wait it out and then be told I'm behind because I am not overpaying my May bill. I am beyond frustrated. Do I just "wait longer"?

Getting a lawyer involved might get the matter resolved faster. It sounds like one mistake turned into many mistakes in an attempt to make corrections.

It is often not best to stop regularly scheduled payments while computing or clerical errors are being fixed.

 

[sprinks]

Yes exactly! I caught it right away - after a few weeks they finally saw the issue but didn't do anything - and yes the one mistake turned in to many. I just paid my May payment because I noticed when they redid the escrow the additional $$$ started with the June payment - but I know - why make it worse for me - I just don't want to pay out even MORE money for other people's accounts.

I will call a lawyer tomorrow because perhaps they know the higher level people to talk to and get this fixed. Thank you.

 

[quincy]

Yes exactly! I caught it right away - after a few weeks they finally saw the issue but didn't do anything - and yes the one mistake turned in to many. I just paid my May payment because I noticed when they redid the escrow the additional $$$ started with the June payment - but I know - why make it worse for me - I just don't want to pay out even MORE money for other people's accounts.

I will call a lawyer tomorrow because perhaps they know the higher level people to talk to and get this fixed. Thank you.

Like you, I have had to wrestle with errors in calculations of payments before and it is no fun trying to get corrections made.

For your own records, keep track of everyone you have contacted (name, number, position, date, time) and keep track of all of your payments. These personal records could be helpful to any attorney who reviews the accounting errors.

 

[adjusterjack]

Like you, I have had to wrestle with errors in calculations of payments before and it is no fun trying to get corrections made.

Me, too. 21 years of hundreds of letters and countless phone calls getting errors corrected and then I became mortgage free.

 

[quincy]

Me, too. 21 years of hundreds of letters and countless phone calls getting errors corrected and then I became mortgage free.

Mortgage free. That will be nice.

 

[adjusterjack]

Mortgage free. That will be nice.

Positively euphoric.

 

[FlyingRon]

Last time I had a mortgage company screw up like that, I told them given their inability to do that, I'd just like to cancel the escrow impound and pay my own taxes and insurance. They agreed. Of course, I've not had a mortgage in over five years.

 

[quincy]

Last time I had a mortgage company screw up like that, I told them given their inability to do that, I'd just like to cancel the escrow impound and pay my own taxes and insurance. They agreed. Of course, I've not had a mortgage in over five years.

It could depend on the mortgage lender, and the particular mortgage loan and its balance, whether the lender will permit cancellation of the escrow, although that could be an option to consider, especially if sprinks has lived in the house for 14 years. Some mortgage loans require an escrow account, at least initially.

 

[sprinks]

Like you, I have had to wrestle with errors in calculations of payments before and it is no fun trying to get corrections made.

For your own records, keep track of everyone you have contacted (name, number, position, date, time) and keep track of all of your payments. These personal records could be helpful to any attorney who reviews the accounting errors.

Yes thank you! I always ask for names - they never give me last names and who knows if it’s really their name. But I have all the dates at least. It’s just ridiculous that in 2021 they could tack someone else’s insurance and pay it from my account. Yes similar names in same zip code but different account numbers and addressee!

 

[sprinks]

It could depend on the mortgage lender, and the particular mortgage loan and its balance, whether the lender will permit cancellation of the escrow, although that could be an option to consider, especially if sprinks has lived in the house for 14 years. Some mortgage loans require an escrow account, at least initially.

I guess I could always ask - just pay them P&I and be responsible for insurance and taxes. I’ll call and ask them. And no - not able to pay off my mortgage for awhile (sole parent 3 teens one starting college in the fall!)

 

[sprinks]

Last time I had a mortgage company screw up like that, I told them given their inability to do that, I'd just like to cancel the escrow impound and pay my own taxes and insurance. They agreed. Of course, I've not had a mortgage in over five years.

Congrats on no mortgage!

 

[quincy]

Yes thank you! I always ask for names - they never give me last names and who knows if it’s really their name. But I have all the dates at least. It’s just ridiculous that in 2021 they could tack someone else’s insurance and pay it from my account. Yes similar names in same zip code but different account numbers and addressee!

It is always easy to say that “mistakes happen” but some mistakes are certainly harder to comprehend than others.

I hope everything gets worked out for you soon. Good luck.

 

[STEPHAN]

I have had similar issues. The most success I had was with letters. Paper. Registered.

 

[quincy]

I have had similar issues. The most success I had was with letters. Paper. Registered.

The letter coming from an attorney can be especially effective.