Getting mortgage company to reimburse $1,600 error

[plurbin]

I am searching for advice from many circles and appreciate any ideas for those who have the patience to read. I am running out of options. Here goes...
My former mortgage loan servicer (Net Bank) transferred service to Chase Home Finance. Chase essentially bought the loan which occurs all the time and the only thing that should have changed for me is that I write out my monthly check to a different company.
During transfer, almost $1,600 was mysteriously removed from my escrow account. These funds were not received by the tax authority or my homeowner insurer. They were simply removed, and the amount did not even match a scheduled payment.
Chase has shown strong resistance to investigate. After both calling and writing several times about the issue, they respond repeatedly only with a canned letter telling me how an escrow account works. Their refusal to answer the specific question of this transaction implies either ineptness or fraud. Net Bank insists that they sent the funds to Chase.
After spending about 50 hours on this issue, I am ready to give up. My mortgage broker referred me to a lawyer but they wouldn't take on the issue. I am ready to give up because the stress and anger from being swindled and treated like an idiot is not good for my health. What other recourse do I have???????????

[Blue Like Jazz]

Small claims court?

[SirVLCIV]

I am searching for advice from many circles and appreciate any ideas for those who have the patience to read. I am running out of options. Here goes...
My former mortgage loan servicer (Net Bank) transferred service to Chase Home Finance. Chase essentially bought the loan which occurs all the time and the only thing that should have changed for me is that I write out my monthly check to a different company.
During transfer, almost $1,600 was mysteriously removed from my escrow account. These funds were not received by the tax authority or my homeowner insurer. They were simply removed, and the amount did not even match a scheduled payment.
Chase has shown strong resistance to investigate. After both calling and writing several times about the issue, they respond repeatedly only with a canned letter telling me how an escrow account works. Their refusal to answer the specific question of this transaction implies either ineptness or fraud. Net Bank insists that they sent the funds to Chase.
After spending about 50 hours on this issue, I am ready to give up. My mortgage broker referred me to a lawyer but they wouldn't take on the issue. I am ready to give up because the stress and anger from being swindled and treated like an idiot is not good for my health. What other recourse do I have???????????

I'd see another lawyer, on your own, rather than the one your mortgage broker referred you to.

[IAm@Work.com]

What documentation do you have that proves the $1,600 was removed?

[Kenny]

Have you threatened to leave Chase by refinancing your house? Not sure if it would work, but that always helps with credit cards and given that rates have dropped could certainly be plausible.

[plurbin]

What documentation do you have that proves the $1,600 was removed?

Chase did an analysis showing transactions from the beginning of a refinance with Net Bank in 2005. They show a line for "Escrow Disbursement" in the said amount. This amount matched the total I already told them, which is [Beginning Escrow at Chase] - [Ending escrow at Net Bank].

[plurbin]

Small claims court?

I don't know much about small claims court. Would they handle a case against a large company?

[Incredible Hulctuary]

I don't know much about small claims court. Would they handle a case against a large company?Yes. A number of people have been successful at suing Microsoft and other vendors to get a refund for returning the Windows OS. The EULA says something to the effect of "if you don't agree with the terms of this license, you may return the software for a refund", but taking it back to the shop usually doesn't result in a refund so they took it to small claims court.

[Salzmann]

What about contacting (or threatening to contact) your state's Commissioner of Banking? The few times I've dealt with a health insurer dragging its feet on a straightforward claim, they've gotten religion after I've sent a note saying that I'd contact the DOI if they didn't resolve it within X Days.

[Barbara]

Do you have a local office of a Chase bank? Walking in with your documentation in hand and insisting that the manager look at it with you can sometimes be helpful.

[Loner]

Chase is utterly inept. I got an MGM Mirage Rewards VISA card with them and it took three months to drag out of them the list of properties that were eligible for the bonus rewards - it's not on their website, and it's not in the brochure(which is embalzoned on the back with the logos of ALL MGM properties, but does not say on that page that these are the eligible properties), and the idiots who you talk to on the phone can't even see the brochure they send you so they act like you are lying when you tell them it's not there. It's nowhere on their website.
They screwed me over on my Stafford loan when I was in college too. I make it a point to not pay them anything and take full advantage of the grace period as a result.
Deifinitely sent a copy of the letter to your state's division of banking and/or attorney general, and let Chase know you are doing so. Hell, call your local TV news show if they have one of those "shame on you" segments.

[llcooljabe]

send to www.consumerist.com (http://www.consumerist.com)

[Blue Like Jazz]

I don't know much about small claims court. Would they handle a case against a large company?

Yes, but you might have to file in the county where they have an office. Not sure. But anyway, just sending them legal paperwork will likely get someone other than an inept customer service rep to at least give you the time of day. Hopefully you won't ever even end up in court. But if you do, you don't need a lawyer. It's much less formal.

[Blue Like Jazz]

Another idea is to contact the lawyer who did your closing. Isn't it the lawyers responsiblity to make sure all the finances get transferred correctly?

[llcooljabe]

Small Claims Court State by state info (http://law.freeadvice.com/resources/smallclaimscourts.htm)

How to (http://consumerist.com/consumer/small-claims-court/how-to-take-your-case-to-small-claims-court-246502.php)

Success stories (http://consumerist.com/tag/small-claims-court/) (Consumerist filtered on "small claims court" tag)

[yankeetripper]

You can also try sending your documentation directly to the CEO and General Counsel for Chase requesting a resolution to your issue. Explain the difficulties you've had with the chain of command. Don't be condescending, just present the fact and why you think they misdirected $1,600. Sometimes this works, sometimes it doesn't.

[omegakain]

Have you tried the BBB?

[Mel-o-rama]

This feels like something you can do without a lawyer. I could have lots of fun with this type of situation. Threaten to go to the Attorney General or report them to the FDIC or something like that. Just make sure you have all your documentation in order.

Oh - and I hate Chase and their tricky credit-card protection plan phone scams (where they say: let me send you something in the mail, but they're really signing you up with the plan). Make this thing as public as you can get it!

[plurbin]

Another idea is to contact the lawyer who did your closing. Isn't it the lawyers responsiblity to make sure all the finances get transferred correctly?
This wasn't an issue at closing. I closed with Net Bank. 5 months later, Net Bank transfers the servicing to Chase. The removal occurred after the transfer to Chase.

Thanks a TON for all the suggestions. I am going to submit another written complaint, this time outlining the steps I plan to take if this doesn't get resolved - which includes refinancing with another company, forward complaint to consumer groups, small claims court, etc.

The frustrating part is 1) huge error for me, small for Chase, 2) burden of proof is on ME to prove to Chase and Chase has not been engaged in this process. Chase has not done its due diligence and has proven to be a consumer-unfriendly company.

[plurbin]

Update - after 13 months, >40 hours on the phone, and 3 letters, Chase has refunded the money!!!
This was due to the advice received in this thread. I sent a respectful, non-threatening letter that outlined the steps I was going to take if the situation wasn't resolved. My original letters essentially berated Chase and demanded my money back.

[Former Actuarial]

Update - after 13 months, >40 hours on the phone, and 3 letters, Chase has refunded the money!!!
This was due to the advice received in this thread. I sent a respectful, non-threatening letter that outlined the steps I was going to take if the situation wasn't resolved. My original letters essentially berated Chase and demanded my money back.
:clap:

[Houdini]

That's awesome, thanks for the update!

Did they admit to any wrongdoing, or say anything about where the money went?

[plurbin]

They apologized for not meeting my expectations, but didn't give a reason for the error. They never said where the money went. As such, my monthly escrow payment now decreases by roughly $100.

[JAS]

Did they give you interest on the money?