In November Bank of America moved my mortgate from one BofA subsidiary to another BofA subsidiary. Since this date, Bank of America has started overcharging me interest. Bank of America acknowledges that their "software has changed" when loans were moved to the new subsidiary. And that their new software calculates interest on a daily basis. Prior to November any additional principal and/or monthly payments made before the 15th of the month, used to be treated as if they were made on the first of the month.
Thus, now if a payment is made on any day other than the first of the month, additional interest is charged upto the date the payment is made.in the past, only a late fee was to be charged, if the monthly payment was made after the 15th of the month.
Several representatives at Bank of America customer service acknowledge that an error seems to have been made. Going back at the loan history, they also agree that the method used to compute interest has changed. They also acknoledged that my loan is not a simple interest loan, but one where the interest should be computed monthly. One representative also mentioned that other customers had similar complains about overcharged interest. However, Bank of America refuses to fix the overcharges, indicating that this is how their new system works. And now their new software gives customers a breakdown of the principle and interest for each payment.in this new process, the system charges additional daily interest to each customer.
Note that I have not refinanced, or done any sort of modification to my loan. Nor have I ever been late on a payment. Just want to make folks aware that Bank of America maybe overcharging them as well. Folks need to look at their mortgage statement and calculate the principle and interest charged, and complain if they have been overcharged.
I guess that by converting all mortgates from a traditional mortgage to a simple interest mortgage, Bank of America can make more money.
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