Tuesday, November 15, 2016

When Banking Goes Wrong

A year ago on October 30, 2015, I got a home mortgage through South State Bank here in South Carolina. They will eventually go the way of Wells Fargo and will not darken our skies or our pockets.

I have them holding an escrow account for my insurance and taxes. In April, 2015 when the not so good hands at Allstate tried to soak me $800 extra a year for an accident I did not cause I went looking for insurance. I found some. I got a discount by switching both car and auto insurance. I paid for the new house insurance because I knew there was not enough in escrow to cover the change. The new company assured me they would NOT bill the bank. (They DID NOT bill the bank, they sent a notice of change).

The idiots running the escrow account paid for the new insurance anyway. Leaving my escrow account $600 in arrears. Wait, what? The person could not see the account would be short? They did not call to ask me about it? Nope. Just cut a check. So, my new insurance company sent my money back. I immediately called my agent. She pulled my account, no bill was sent. Notice of change in policy was sent. She called her contact at the bank. After talking to the bank it was deemed an error on the part of the bank and I needed to put the money back in my escrow account. But the account is still $600 short.

I go to the bank and deposit the money in escrow and want to know how to prevent this again? I want someone fired for this. Knowing it won't happen, I want them docked pay. Again not going to happen.

I have been watching the escrow account like a hawk. This is also the bank which does not acknowledge additional payment to the principle. It's a line item they have to account for it. It MUST show on my bill. Even my car payment which only gets about $0.38 extra a month has to show on the statement extra was paid to the principle. It has taken me six months to get them to put this as a line item.

Here comes October. They have to look at my taxes and insurance and figure out if there is enough money in the enough in escrow to pay the bills. All banks have a way to find out the current taxes even if they have not yet been billed. Once again the IDIOTS running escrow did not do this. They used a projected tax to figure out my new payment. In their infinite wisdom (insert dripping sarcasm), they determined I had a refund of $169 + change. So, they cut me a check and raised my payment $40 + change. Really???? So, I call again, because I also have the tax bill. They have figured it with an estimate and are off $127 + change. Oh, we'll do it again. Good how do I get out of an escrow account? We can send you papers to do that, please send them.

New papers on escrow account arrive Nov 10th. I now owe them $139 + change to keep my payment at $954.04 which is what it went up to the first time. Or my new payment will be $981 + change. Wait, if they had done the job correctly to begin with I would only have received a refund of $30 + change and a $38.36 increase in the payment.

I was in the bank this morning. There is nothing they can do at a branch bank because the escrow accounts are held in the Republic of Texas. Really, my local bank where I got the damn loan cannot help me with the damn loan. No one there is authorized to give me papers to dissolve an escrow account. They have to call the guy who got me the loan a year ago. He and I have already spoken on this issue once.  So, I'm waiting for Kevin to call.

I am closing the escrow account. I will open a savings account and put the money there and include money to cover my auto insurance, too. I know how to manage money. It's not money I had to spend anyway. I mean I'm putting away 7% of my pension to cover state income taxes every month. I know what I'm doing.

Millenials who are book smart and common sense stupid...must be the problem. No one with common sense would make this many errors on one account. I have a minor in accounting. I run a business. One would assume I do know a thing or two about how money works. The entire escrow department at South State Bank is a rip off.  Avoid them if possible. They will find a way to make your money come up missing.

Yes, I will be reporting them to the better banking bureau....as soon as I find out how. They messed with the wrong person.
TTFN

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