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US Bank Charges
updated: Dec 11, 2012, 3:11 PM

By Edhat Subscriber

Does anyone else's mortgage company constantly harass them about flood insurance and then turn around and charge you even though you have shown them proof of insurance repeatedly. Our house is financed through US BANK and this has been an on-going problem for over a year. Even though we resubmitted our flood insurance policy again about two weeks ago they still charge us $500 on our December bill. Arghh!!

Comments in order of when they were received | (reverse order)

 COMMENT 352933 agree helpful negative off topic

2012-12-11 03:23 PM

It's a FEDERAL LAW that anyone in the flood plane have flood insurance on financed property.

Biggest ripoff going. It's VERY expensive and only covers a total building loss, NO contents.


 COMMENT 352935P agree helpful negative off topic

2012-12-11 03:27 PM

Your having a bank communication problem, not a Santa Barbara problem.
Ask for a supervisor at your lender until you solve your problem.


 COMMENT 352942P agree helpful negative off topic

2012-12-11 03:37 PM

Our neighbors who were having problems with their insurance agency re their flood insurance ended up changing their insurance company. That's a lot easier than changing mortgage holders, but you can use it as an example. It's a bank communication problem. Ask them to escalate to the first level of actual competence to fix their own problems. Confusion over flood insurance appears to be endemic.


 COMMENT 352957P agree helpful negative off topic

2012-12-11 03:52 PM

Don't let them do that! They can't charge you for insurance you already have....


 COMMENT 352966 agree helpful negative off topic

2012-12-11 04:04 PM

Our SBB&T mortgage was sold to US Bank, and they have been so annoying and inept we are refinancing with another company. US Bank convinced themselves we didn't have insurance, despite numerous attempts to get them the information and the fact that we have been continuously insured with the same company, and treated us like deadbeats.


 COMMENT 352968 agree helpful negative off topic

2012-12-11 04:04 PM

file a complaint


 COMMENT 352987 agree helpful negative off topic

2012-12-11 04:26 PM

They should reimburse you for what they charged when you show proof of flood insurance. You are usually only required to purchase flood insurance if your property is in a flood zone. The reason they want this is to protect their collateral (ie your home or business) they don't care if your items inside are protected as the bank as no interest in your personal items. Talk to the manager of the lending department. Depending on the bank it can be a huge hassle. That is why I perfer to work with small banks if possible.


 COMMENT 352995 agree helpful negative off topic

2012-12-11 04:41 PM

Yes, we have had that problem. Absolutely demand a refund for their mistake and be sure to check your mortgage statement until you see the credit.

Have your insurance agent call them and FAX them the policy and do the follow up, that's what you are paying him for.

Do talk to a supervisor and be sure to get their name and keep a record of all correspondence by you and your insurance agent.

Personally I think this is a scam that banks are pulling on their unsuspecting customers. Wonder how many go along with it or don't check and see if they were refunded the $.

Good luck!


 COMMENT 353009 agree helpful negative off topic

2012-12-11 04:57 PM

REFINANCE. Drop the deadbeat bank.... they rip you off because they are allowed to.


 COMMENT 353028 agree helpful negative off topic

2012-12-11 06:00 PM

I smell a class action lawsuit in the making. When will these banks learn. Of course it will take someone to start it and recruit those who are going through the same thing. Have your lawyer contact the bank manager. Very effective.


 COMMENT 353093 agree helpful negative off topic

2012-12-11 08:41 PM

Yes. My mortgage was with GMAC and this happened for 13 years. They always reversed the charges, but I had to go through the hassle and expense year after year after year -- and of course we know that the cost to their business of going through this ridiculous exercise, multiplied by the number of their customers living in any flood zone anywhere in the nation, was passed on to their customers each and every year. The only good part was blasting them with my annual angry letter -- and refinancing this year with a local, wonderful credit union.


 COMMENT 353117P agree helpful negative off topic

2012-12-11 09:58 PM

For years my bank did the same thing to me. Too many hours on frustrating calls to the bank and the insurance broker. I was finally able to drop the insurance when I paid off the loan.


 COMMENT 353132 agree helpful negative off topic

2012-12-12 06:13 AM

Yes. EVERY YEAR same thing for 8 years. Not the insurance company's fault! Proof of insurance sent multiple time each year but still happens. Maybe it's a way for banks to pad out their year-end numbers? Our mortgage was WaMu then bought by Chase.


 COMMENT 353133 agree helpful negative off topic

2012-12-12 06:28 AM

yes.....and they gave even me FEMA insurance.....more expensive....I had my insurance company bug them and faxing them the information. Let you insurance company do the work, but check up on them, as well.


 FLICKA agree helpful negative off topic

2012-12-12 07:02 AM

Calling people with serious concerns and banking problems "whiners" is uncalled for. Probably jealous about not having a morgage/home. These banks should be fined for trying to cheat clients.


 COMMENT 353165 agree helpful negative off topic

2012-12-12 08:05 AM

it is IN YOUR MORTGAGE PAPERS, read them before you sign. If you are in a flood plane, you MUST have flood insurance. I had my property surveyed and literally a two foot corner of my building touched the 100 year flood plane, the rest of the property was too elevated to be involved, but I am still forced to buy flood insurance anyway. It is not a scam, much as I hate to pay it, it is clearly noted in your mortgage agreement and was there when you signed the documents. It should not be a surprise to you.


 COMMENT 353184 agree helpful negative off topic

2012-12-12 09:02 AM

@65 You are correct, but the discussion is about people who already DO have flood insurance, but the bank insists they don't and then the hassle begins. That was our situation and it took weeks and hours of our and our insurance agents time trying to get the bank to adjust their incorrect records and refund the outrageous charge they added to the mortgage payment after they assigned their own insurance carrier.


 COMMENT 353217 agree helpful negative off topic

2012-12-12 09:56 AM

Keep in mind that if you refinance your original mortgage you lose bankruptcy protection. So it isn't always the best way to deal with a problematic lender.


 COMMENT 353247 agree helpful negative off topic

2012-12-12 10:31 AM

5 years ago Chase tried the flood insurance charge. We had our property surveyed and had proof we were not in a flood zone. They agreed no flood Ins. necessary. Last week the same Co. Chase has again tried to put flood Ins. on our property. We have not sunk or had any earthquake movement to our property. Yet again we have to prove we are not in a flood zone.


 BECKY agree helpful negative off topic

2012-12-12 10:34 AM

On the topic of flood insurance... There are classifications of risk of damage -- how high above the flood plain you are -- that greatly change the amount of flood insurance you are required to carry. A group of neighbors in our neighborhood got together and hired a specialist civil engineer with experience in these matters to document that we were at lower risk than classified. It reduced our required flood insurance by hundreds of dollars each year.


 PJG agree helpful negative off topic

2012-12-12 06:12 PM

I am the poster. I know we need flood insurance and we have carried it continuously since we bought the property. The problem is that every other month they send us a notice that we don't have it and then add it to our mortgage. We spend hours on the phone playing the transfer and wait game and even go in person to US Bank. Our insurance agent has repeatedly contacted them. We are in the process of re-financing but with mortgage companies you never know if your loan is going to be sold. BTW, we also hired a civil engineer to check our property and yes it is in a flood zone.


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