Western Security Bank

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Revdex.com,
I have reviewed the response made by the business in reference to complaint ID *** and have determined that this does not resolve my complaintFor your reference, details of the offer I reviewed appear below
In mid-August I called WSB to check in on a warning I had received via mailI was told they would check into this and when I didn't hear back I believed that they had found the paymentI did not further check into the situation as this is consistent with previous processing issues on the part of WSB When I contacted the bank in the past, they have been able to locate the payment and apply appropriately with no further communication neededAs a reminder, in each of these instances, my check was sent via Wells Fargo in a timely matter to be received by Western Security Bank before the grace period each monthThis continues to happen at least once a yearThis is the only mortgage, out of four mortgages from different banks, where I have any payment processing issueRegarding the response from WSB "...suggested having Western Security Bank setup an ACH or electronic payment that we would generate the charge to his account at Wells Fargo. At the time he refused the suggestion." I would like to question the authenticity of this statementI don't have record of the suggestions or my refusal, but if they have proof I would be happy to reflect and respond.When I received a notice on September that I was days past due, I decided that it would be best to start contacting via email so that we have a written record of our exchanges rather than voice conversations as in the pastI sent an email on September On September I filed a case with Wells FargoOn September 10, Wells Fargo responded that they could not stop the payment on a check that was processed on August but were willing to meet with WSB to come to a conclusionPlease see attachment - first post. I then filled out an online form to find a way to make online payments to Western Security BankI received response from Western Security Bank on September with log in informationPlease see Attachment screenshotAlthough I have logged in, there doesn't appear to be an option to pay my mortgage online through their site (as a member of another bank)I have not pursued the option of opening an account at WSB further than thisOn September 23, the lender did suggest "Instead of issuing a paper check from your bill pay system, let’s see if WSB can set up an automatic funds transfer from our side so the payment is pulled electronically from your WellsFargo account and posted electronically to your WSB mortgage." I have not responded initially as I had decided to open a complaint with Revdex.com regarding our past issues and see if we can get those issues resolvedHowever, I would like to say I appreciate this approach for the future and am certainly willing to work with WSB IF they can guarantee that WSB can set up an automatic funds transfer. To address the comments from WSB - "No one at Western Security Bank has been in contact with Wells Fargo to negotiate any terms on his loan"My understanding, via a phone conversation with Wells Fargo, was that it would be not reflect on my credit report as the payment had processed per usualAdditionally, it looks as though WSB was definitely in contact with WF regarding the loan as Wells Fargo stated "At the request of WESTERN SECURITY BANK, your payment for $to WESTERN SECURITY BANK has been stopped." This was done so that I could make a payment to WSB without losing an additional $that may have been misapplied or lost at WSB. See Attachment number for the entire post.I am happy to work with WSB in the future re: ACH style payments from Wells FargoHowever, our past needs to be addressed as it is unfairly reflecting in my credit report. WSB did not respond to my initial contact in August re: the "late" August payment and thus I understood (based on history) that the payment had been found and appliedHistorically, WSB misapplied my payments in the past - but there is no action against them when this happens. Once my bank has processed payments, the money is removed from my account and I cannot stop the checkAlthough I would have been happy to send a check immediately - I would hav3e been out an additional $850. Without initial response from WSB, with a history of misapplied payments or "lost" payments that were eventually found and processing corrections then made by WSB, and without the ability to send a follcheck without conversations happening between WSB and WF I was unable to make any moves to alleviate this before the banks were able to work it out on their side through the claim process. As this has happened in the past, I would like an auditor, not associated with WSB, to check into their payment processing to see why payments get lost or are misapplied with WSBThe majority of all my payments are done via Wells Fargo Bill Pay and I have no problem with any other institution receiving the paymentsI need an answer as to why WSB continues to have this as a problem. I also believe that I should not be punished with a year reflection on my credit report due to this history and to my "catch 22" situationI'd like WSB to remove it from my credit report. Thank you for your consideration
*** ***

To Whom It May Concern;
I understand Mr***’s concern with his credit score and take it very seriously. Unfortunately, none of the facts have changed in this matter. I have verified that no one at Western Security Bank has been in contact with anyone at Wells Fargo concerning this payment, nor made any promises to Mr*** or Wells Fargo concerning Credit Bureau reporting.. Unfortunately, this is not the first time Mr***’s payment has been late. This matter has occurred in the past and our Loan Services representative worked with Mr*** on these prior situations It has been recommended to him that Western Security Bank setup an electronic payment to ensure it is made on time, but Mr*** has not initiated the process
Due to these past situations and options provided to Mr***, we do not believe changing our reporting to the credit bureaus would be the correct action to take. In fact, we would be breaking the law as stated in the Fair Credit Reporting Act to change our reporting.
Sincerely,
*** ** ***SVP Western Security Bank

Please be aware the response below has had all personally identifiable information removed due to the public nature of the Revdex.com website.
 
I am in receipt of the complaint filed with the Revdex.com on September 23, 2015 concerning a late mortgage payment on property located in Bozeman,...

Montana. 
On September 7, 2015 the complainant contacted Western Security Bank via email with concerns about a 30 day past due letter he had received and late charges he was assessed for the August 1, 2015 payment on his loan.  In his email, he indicated he had opened an investigation with Wells Fargo Bank to find out if the payment sent in August had cleared.  It was determined the payment had not cleared; therefore he sent the payment again on September 14, 2015.   In the meantime, his September 2, 2015 payment had generated and we received and posted it to his account on September 9, 2015 to pay the August 1, 2015 past due payment.  We received and posted the payment he sent on September 14 on September 21, 2015, which brought his loan current. 
In his complaint he stated “Wells Fargo and WSB were able to work out an agreement and I wouldn't be charged any late fees and understood this would not reflect negatively on my credit report”. No one at Western Security Bank has been in contact with Wells Fargo to negotiate any terms on his loan.  However, as a courtesy to him, we did waive the late fee on September 11, 2015.
There have been problems in the past where his loan payment was not received or received very late.  Our Loan Servicing Department has worked with him in the past on those and had suggested having Western Security Bank setup an ACH or electronic payment that we would generate the charge to his account at Wells Fargo.   At the time he refused the suggestion. 
On September 23, 2015 the lender also suggested WSB setup an ACH payment to charge his account at Wells Fargo. To date we have not received a response from him concerning the suggestion.  Ultimately it is the customer’s responsibility to ensure their payment is received on time.  If the current method is not working, then an alternative method needs to be found.  We are bound by the Fair Credit Reporting Act to accurately reflect each customer’s loan history.  Therefore, if a payment is not received within the grace period, we are required to report the payment as past due.

I have used Western Security Bank for both my personal and business banking needs. Their staff have always been very helpful and are great bank.

Western Security Bank helped us with our mortgage for our first home. Everyone we worked with was friendly, knowledgeable and attentive. They helped us with first time home buyer programs and secured a great rate.

Review: Western Security Bank reporting me 30 days past due on my mortgage. Here are the facts:

I have a recurring payment set up - and have for years - through Wells Fargo I have this for all four of my mortgages.

On August 3 my bank processed recurring payment to be delivered by August 10, which is within the grace period for delivering the WSB mortgage payment.

Western Security Bank sent out a form letter to let me know they didn't receive the payment. I called them in the middle of August to check into the issue to make sure they didn't receive my payment. This is not the first time this has happened with Western Security Bank - all of the previous times that I've received a letter from WSB, we have discovered that the payment was posted incorrectly and their office was able to correct the situation. They did not respond with an update and so I assumed they found the payment and it was posted. Note: Payment has already processed from my account and so the total amount has already left. Once again, I made contact and they didn't contact me back with a follow-up. In September I received another letter and followed up immediately with WSB and my bank. My bank put the item in dispute - at this point, I'm still out the $850 dollars. Wells Fargo and WSB were able to work out an agreement and I wouldn't be charged any late fees and understood this would not reflect negatively on my credit report. I resent the payment and they've received.

This is the only mortgage of the four mortgages where I've had difficulty with the delivery/posting.

Unfortunately, today I was alerted that my credit score dropped from a 779 to a 729 because WSB reported my mortgage late. I am frustrated. I reached out initally to the letter and WSB did not follow up with me. I followed up after the second form letter via email. I initiated the dispute process so Wells Fargo would stop the check and WSB could receive the payment. Due to the fact that they have misappropriated my funds in the past, I find it hard to believe that this payment was "lost in the mail" as the statement from Kaycee Caroll below has inferred:

"Western Security Bank cannot determine if a check is lost in the mail or not. If there was a posting issue on our side, then yes, we are responsible to correct any late payments or 30 day past dues reported to the credit repot. If it is a check that is lost in the mail, and we do not receive payment, there isn’t much we can do on our side as we did not receive the payment. We are bound to fair credit reporting laws."

The lost payment responsibility lies somewhere between Wells Fargo and WSB. Meanwhile, they get off scot free while I, the consumer, loses in the end with a decreased credit score of 50 points.Desired Settlement: I would like WSB to correct my credit report.

I would like WSB to put a point of contact who will email me every time they post my payments in the future - this will hopefully address any "lost mail" or "posted incorrectly".

I would an impartial audit on WSB mortgage processes (not their internal auditors) to find out how often payments for customers are posted incorrectly. If this is common, I'm hoping to see WSB correct their processes to ensure they can deal with my mortgage the way all of my other lenders have - without incident.

Business

Response:

Please be aware the response below has had all personally identifiable information removed due to the public nature of the Revdex.com website.

I am in receipt of the complaint filed with the Revdex.com on September 23, 2015 concerning a late mortgage payment on property located in Bozeman, Montana.

On September 7, 2015 the complainant contacted Western Security Bank via email with concerns about a 30 day past due letter he had received and late charges he was assessed for the August 1, 2015 payment on his loan. In his email, he indicated he had opened an investigation with Wells Fargo Bank to find out if the payment sent in August had cleared. It was determined the payment had not cleared; therefore he sent the payment again on September 14, 2015. In the meantime, his September 2, 2015 payment had generated and we received and posted it to his account on September 9, 2015 to pay the August 1, 2015 past due payment. We received and posted the payment he sent on September 14 on September 21, 2015, which brought his loan current.

In his complaint he stated “Wells Fargo and WSB were able to work out an agreement and I wouldn't be charged any late fees and understood this would not reflect negatively on my credit report”. No one at Western Security Bank has been in contact with Wells Fargo to negotiate any terms on his loan. However, as a courtesy to him, we did waive the late fee on September 11, 2015.

There have been problems in the past where his loan payment was not received or received very late. Our Loan Servicing Department has worked with him in the past on those and had suggested having Western Security Bank setup an ACH or electronic payment that we would generate the charge to his account at Wells Fargo. At the time he refused the suggestion.

On September 23, 2015 the lender also suggested WSB setup an ACH payment to charge his account at Wells Fargo. To date we have not received a response from him concerning the suggestion. Ultimately it is the customer’s responsibility to ensure their payment is received on time. If the current method is not working, then an alternative method needs to be found. We are bound by the Fair Credit Reporting Act to accurately reflect each customer’s loan history. Therefore, if a payment is not received within the grace period, we are required to report the payment as past due.

Consumer

Response:

[To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received, your complaint will be closed Administratively Resolved]

Revdex.com,

I have reviewed the response made by the business in reference to complaint ID [redacted] and have determined that this does not resolve my complaint. For your reference, details of the offer I reviewed appear below.

In mid-August I called WSB to check in on a warning I had received via mail. I was told they would check into this and when I didn't hear back I believed that they had found the payment. I did not further check into the situation as this is consistent with previous processing issues on the part of WSB. When I contacted the bank in the past, they have been able to locate the payment and apply appropriately with no further communication needed. As a reminder, in each of these instances, my check was sent via Wells Fargo in a timely matter to be received by Western Security Bank before the grace period each month. This continues to happen at least once a year. This is the only mortgage, out of four mortgages from different banks, where I have any payment processing issue. Regarding the response from WSB "...suggested having Western Security Bank setup an ACH or electronic payment that we would generate the charge to his account at Wells Fargo. At the time he refused the suggestion." I would like to question the authenticity of this statement. I don't have record of the suggestions or my refusal, but if they have proof I would be happy to reflect and respond.

Review: When I first opened my account with Western Security Bank, the account was never allowed to be overdrawn by the bank. In that if any transaction that would put the balance below zero, the transaction would be declined.

Sometime in 2013 the Western Security Bank switched policy over to paying any transaction that would drop the account to below zero dollars therefore causing daily overdraft charges to be levied against the account and customer. I received no notification of this change in any form.

This caused my account to become negative and accrue substantial overdraft charges. I went into the Laurel, Montana branch and inquired about this situation. This is when I was first made aware of the policy change and to change my account back to how it was when I first opened it where transactions would be declined instead of being paid by the bank and charged overdraft fees, I would need to "opt out" of this new policy. I immediately requested this to be done and the teller got on her computer and told me I was now "opted out" and my account was as it was. I also had to close my debit card and open a new one.

A few months later I was hit with overdraft charges once again for an online recurring charge, one that I didn't authorize the on-line company to withdraw, I once again went to the bank branch in Laurel, MT and was told once again that I needed to "opt out". I told them I already had done this and after some research I was told it must not have "taken" in the system and was told that it was fixed and I was now "opted out" Again I had to close my debit card and open a new one.

Another few months later the exact same thing happened again and the exact same scenario took place.

February 2014 this situation happened yet again. This time Western Security Bank closed my account and reported me to [redacted] after charging my account excessive overdraft charges and my refusing to pay them because I feel they are in error due to their policies and questionable practices. They also threatened to take money from my wife's separate bank account to pay the overdraft charges.

I went through this with Bank of America and won a legal settlement against them for the same tactics Western Security Bank is currently practicing with my account.Desired Settlement: I would like all charges zeroed, my accounts to remain closed and the [redacted] report to be retracted.

Business

Response:

Below is the response made to the customer in a letter:

Thank

you for your correspondence and in response to your concerns we have noted our

findings.

Western

Security Bank makes a practice of paying as many overdrafts as possible because

we know returned items may result in significant costs and inconvenience to

you. With that said we pay at our

discretion and consider several factors prior to making the decision to pay or

return.

At

the time an account is opened a customer is provided with a document explaining

our practices on authorizing or approving debit card transactions that will

overdraw an account. The customer is

given the option to allow standard debit card transactions to overdraw their

account or decline this service.

Recurring transactions are handled differently. They do not require a preauthorization before

being processed. Therefore they can not

be stopped in this manner.

I

reviewed your account activity for the past year in order to respond to the issues

you outlined. At your request, your

account was initially setup to allow debit card transactions to overdraw. On August 14, 2013 this “Opt In” was revoked

and we sent a notice to you confirming this.

At that time, all standard debit card transactions that attempted to

authorize on a negative balance were stopped.

The

item that overdrew your account on February 25th was a recurring debit

card transaction in the amount of $29.63.

There were not enough funds at the time.

It overdrew your account and we are unable to return debit card

transaction once they post. Your initial

account disclosures notified you of charges that would be assessed when your

account is overdrawn, including a “per item” charge and a continuous charge if

your account remains overdrawn. These

charges have been assessed to your account as disclosed.

On

April 2 staff at the Laurel Branch spoke with either yourself or the joint

owner about the account and agreed to waive $60 in fees when the remaining

balance is paid. Once that occurs, we

would be happy to open a new account for you and assist you in finding methods

to manage your account.