Centric Bank

August 18, 2016Dear [redacted] ,Thank you for contacting Centric Bank regarding the above referenced complaintWe realize the circumstances surrounding this experience can be an unsettling experience, but we have been working with this client and are committed to assisting our client in an expedient mannerThe client has been a customer of Centric Bank ( [redacted] National Bank) since and the bank is willing to work through this issue.Statement #1; Centric Bank failed to notify me that I needed to re-submit an automatic payment form for my variable rate mortgage until days after the due date:The client was mailed a notice of payment change on March 11, advising of the new payment amount beginning on June 9, The payment amount was increased by $and this was due to the balance of the loan changing as a result of the cost of force-placed insurance being added to the balance of the loanThe generation and mailing of the change notice was within the timing guidelines in the Regulation Z, CFR Part 1026.20(c)(2).There is no regulatory requirement to advise the client to change an automatic payment establishedThe bank did not require the client to set up the ACH from another financial institution and did so only at the request of the clientIt was the responsibility of the client to authorize the change when he received the required change notice.Since the client did not adjust the amount of the ACH payment to match the new required monthly payment, the payment amount received in June was a partial paymentThe bank sent a notice on June 24, to the client advising of the shortage and the additional amount needed to bring the loan current, in addition the bank made several unsuccessful attempts to reach the client by phone and the client became past due.Statement #2; The automatic payments have been linked to the same bank account and paid on time for over years.The loan was set up on an automatic payment with an account at Centric Bank for a short period of time but the checking account was closed for not being handled as agreed in During this time, the client was past due on his loan days or more, timesIn 2014, the client requested an ACH be established with his current financial institution and the payments were current until June 2016.Statement #3; Centric Bank reported missed payments to the credit reporting agencies.Centric Bank reported a day late payment in July, for the payment shortage on the June paymentAs stated earlier, the bank sent payment statements, past due notices and made several attempts to reach the client by phone to rectify this matter,Statement #4; The Lender did not send me a form to restart the auto pay until July 29, Consumer Protection Laws state clearly that "IF you have an ARM that has already reset once, you will be notified two to four months before the first payment at the new rate is due if the next reset is going to change your payment amount.”RegulationZ, CFR Part 1026.20(c)(2) states: The disclosures shall be provided to consumers at least 25, but no more than days before the first payment at the adjusted level is due for ARMs with uniformly scheduled interest rate adjustments occurring every days or more frequently and for ARMs originated prior to January 10, in Which the loan Contract requires the adjusted interest rate and payment to be calculated based on the index figure available as of a date that is less than days prior to the adjustment dateAs stated previously, Centric Bank mailed the required notice on March 11, 2016.Statement #5; It is the responsibility of the lender to notify the borrower before a rate change if they need to take action, Centric Bank's lack of regulatory Compliance has resulted in a potentially catastrophic impact on my credit history.Centric Bank mailed the required change notice on March 11, A mortgage statement showing the new payment amount was mailed on May 24, and a past due notice indicating the payment shortage was mailed on June 24, 2016, Copies of these documents will be provided upon request.The client spoke with a representative of Centric Bank on August 15, and provided all of the above information and advised the client of the total amount needed to bring the account current; to date the loan remains past due,Centric Bank is willing to work with this client and we ask for his attention to this matterUpon making his current payment and the past due amount, we would be happy to refund the late charges that were assessed to the loan in June and July.Sincerely,Leslie M.Senior Vice President

August 18, 2016Dear [redacted],Thank you for contacting Centric Bank regarding the above referenced complaint. We realize the circumstances surrounding this experience can be an unsettling experience, but we have been working with this client and are committed to assisting our client in an expedient...

manner. The client has been a customer of Centric Bank ([redacted] National Bank) since 2003 and the bank is willing to work through this issue.Statement #1; Centric Bank failed to notify me that I needed to re-submit an automatic payment form for my variable rate mortgage until 40 days after the due date:The client was mailed a notice of payment change on March 11, 2016 advising of the new payment amount beginning on June 9, 2016. The payment amount was increased by $28.68 and this was due to the balance of the loan changing as a result of the cost of force-placed insurance being added to the balance of the loan. The generation and mailing of the change notice was within the timing guidelines in the Regulation Z, 12 CFR Part 1026.20(c)(2).There is no regulatory requirement to advise the client to change an automatic payment established. The bank did not require the client to set up the ACH from another financial institution and did so only at the request of the client. It was the responsibility of the client to authorize the change when he received the required change notice.Since the client did not adjust the amount of the ACH payment to match the new required monthly payment, the payment amount received in June was a partial payment. The bank sent a notice on June 24, 2016 to the client advising of the shortage and the additional amount needed to bring the loan current, in addition the bank made several unsuccessful attempts to reach the client by phone and the client became past due.Statement #2; The automatic payments have been linked to the same bank account and paid on time for over 13 years.The loan was set up on an automatic payment with an account at Centric Bank for a short period of time but the checking account was closed for not being handled as agreed in 2011. During this time, the client was past due on his loan 30 days or more, 8 times. In 2014, the client requested an ACH be established with his current financial institution and the payments were current until June 2016.Statement #3; Centric Bank reported 2 missed payments to the credit reporting agencies.Centric Bank reported a 30 day late payment in July, 2016 for the payment shortage on the June payment. As stated earlier, the bank sent payment statements, past due notices and made several attempts to reach the client by phone to rectify this matter,Statement #4; The Lender did not send me a form to restart the auto pay until July 29, 2016. Consumer Protection Laws state clearly that "IF you have an ARM that has already reset once, you will be notified two to four months before the first payment at the new rate is due if the next reset is going to change your payment amount.”RegulationZ, 12 CFR Part 1026.20(c)(2) states: The disclosures shall be provided to consumers at least 25, but no more than 120 days before the first payment at the adjusted level is due for ARMs with uniformly scheduled interest rate adjustments occurring every 60 days or more frequently and for ARMs originated prior to January 10, 2015 in Which the loan Contract requires the adjusted interest rate and payment to be calculated based on the index figure available as of a date that is less than 45 days prior to the adjustment date. As stated previously, Centric Bank mailed the required notice on March 11, 2016.Statement #5; It is the responsibility of the lender to notify the borrower before a rate change if they need to take action, Centric Bank's lack of regulatory Compliance has resulted in a potentially catastrophic impact on my credit history.Centric Bank mailed the required change notice on March 11, 2015. A mortgage statement showing the new payment amount was mailed on May 24, 2016 and a past due notice indicating the payment shortage was mailed on June 24, 2016, Copies of these documents will be provided upon request.The client spoke with a representative of Centric Bank on August 15, 2016 and provided all of the above information and advised the client of the total amount needed to bring the account current; to date the loan remains past due,Centric Bank is willing to work with this client and we ask for his attention to this matter. Upon making his current payment and the past due amount, we would be happy to refund the late charges that were assessed to the loan in June and July.Sincerely,Leslie M.Senior Vice President