I have a home mortgage with Citibank/Citimortgage. Recently, I decided to pay down some of the principal in my home by sending an additional payment to the bank to be applied towards the remaining amount I owed on my home loan. They provide a form you can mail in for this purpose, and clearly on the form with payment, you can specify how much of the payment is to go towards paying down principal, escrow, or monthly notes, etc.
I sent in a payment of $5000 to pay down the principal. It was clearly indicated as a payment towards the principal on my home loan. I later called Citimortgage to find out that they took a big chunk of my advance payment and applied it to the monthly mortgage note!
Now also understand that my mortgage payment was being *automatically* deducted from my bank account, and I was not past-due on any mortgage payments whatsoever, and have never been past due. Citimortgage STOLE a portion of my prepayment and applied it as a regular mortgage payment (meaning a ton of it went towards interest, into their coffers) *without my consent and against my explicit instructions*. I consider this totally unethical, sleazy and possibly quite illegal. There may even be a class action issue — is Citicorp taking a portion of all payments their clients make towards reducing principal on loans and repurposing it as a lucative-to-them mortgage payment?
This is an outrage, and it's an example of the ways in which a big company STEALS MONEY FROM ITS CUSTOMERS, and in this case steals money from a customer who is even paying more than they're required!
If you deal with Citibank and Citimortgage GO OVER YOUR TRANSACTIONS CAREFULLY! Call them up and make sure you're not getting RIPPED OFF!!
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