- Report: #1485345
Complaint Review: State FarmBank - Bloomington Illinois
Reported By:
Slaythe Giant -
Baton Rouge, Louisiana, United States
Submitted:
Updated:
-
Author Not Confirmed
Why?
State FarmBank
One State Farm Plaza Bloomington, 61710 Illinois, United States
Phone:
877-734-2265
Web:
https://bank.statefarm.com
Categories:
Business Rating:
(0)
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State FarmBank Start charging late fees before loan grace period was up and then not processing online payments promptly to trigger late fee Bloomington Illinois
This started as soon as we got the loan. The payment was due on the 25th but you had unitl the 5th, the 6th or sometimes even the 7th to get the payment in without being dinged with a late fee becuase it was ten business days and according to if the month had 28, 30 or 31 days depended on when the grace period was over.
So I got this late fee notice on the 1st when I know it wasnt late until the 5th. I say to myself, just a glitch because it's a new loan they would correct it. Wrong!
This practice of charging a late fee before grace period was up would continue until the loan was paid off. even going to the website didnt help, because they used the processed date of the check instead of when you submitted it to the website.
I know I cannot be the only one who encountered this with State Farm. I reported this to CFPB but of course, they allowed the company to say, no, they didn't do it even though I presented strong proof such as canceled checks, web submittal records and the payment coupons. State Farm had the audacity to say that I was always late when I submitted proof that I was not. CFPB accepted that as proof because a big corporation said so. When I was late, I paid the late fee but if I was within the grace period, I did not because that's the way it was supposed to work.
I have since paid them off but I just want everyone out there to beware and if this is a business pattern, I would like others to chime in to help other consumers make a informed decision about business practices of banks like State Farm.
1 Updates & Rebuttals
Robert
Irvine,California,
United States
Clueless borrower
#2Consumer Comment
Sun, September 22, 2019
The fact that you don't even know what a "Business Day" would be considered tells us that you likely have no clue about the terms of your loan.
A "Business Day" is any Non-Holiday Weekday. So if they truly gave you 10 business days, you would actually have much longer into the next month depending on when the days fall and if there were any holidays. You of course are saying that is even more proof that they are wrong...but all that shows is that you really don't know what your due dates were.
So I got this late fee notice on the 1st when I know it wasnt late until the 5th. I say to myself, just a glitch because it's a new loan they would correct it.
- Of course you never said to yourself.."Self..perhaps I should call them to see what was going on". Because you knew if you did you would find out that you were wrong.
even going to the website didnt help, because they used the processed date of the check instead of when you submitted it to the website.
- If you submitted it to their website, was it after their Cut-Off time? If, for example, their Cut-Off time was 5PM, and you submitted it at 6PM it would be processed the next business day. If you did this on the last day of the grace period...you would then be late.
If you submitted it to another web site(such as your bank), just like when you mail it your payment is considerd made when they receive it. So you have to allow extra time for it to get from your bank's site to theirs. Which depending on the bank could be 1-5 business days.
When I was late, I paid the late fee but if I was within the grace period, I did not because that's the way it was supposed to work......
Then you stated
I have since paid them off
- These statements do not match without some information you seem to be missing. You never stated that they admited they were wrong, therfore there is no reason for them to not require you to pay the late payments when they thought you were late. But if that is the case there is no way you could pay off the loan because you just decided to not pay the late payments.
So either they did agree that you were right and waived the late fees, they never actually charged you the late fees, you did in fact pay all of the late fees they say you owed, or you are actually not paid off and in fact currently in default.
