But for some reason, Wells Fargo Home Lending paid a higher flood insurance premium to
"This was a shock," Schrenk said. "It was news to me. There was no explanation as to why."
Schrenk got to the bottom of it and he got a little help from Press on Your Side at the end. It "became a vicious circle of runarounds and double talk," he said.
Here's what happened.
Escrow was short
In August, Schrenk and his wife,
In Schrenk's case, he discovered that Wells Fargo paid
When he investigated his flood insurance policy, he discovered that
When he called Wells Fargo, he was told the mortgage company simply pays Selective's invoice. "If there was an increase in my premium, I should contact Selective and take it up with them," Schrenk said, recounting it in a note to Press on Your Side. "I told (Wells Fargo) that if there was a significant increase I should be made aware of it beforehand so I could look into other options."
But when he called Selective he found that his coverage was still at the lowest tier. "They didn't know why Wells Fargo would pay" for the higher tier, Schrenk said.
RELATED: How did the Wells Fargo debacle happen?
Pressing Wells Fargo
A Wells Fargo representative told Schrenk again that the company paid Selective's invoice. Schrenk said he pressed the issue. He demanded that Wells Fargo lower his flood insurance coverage to its previous level and correct the escrow amount. "It should just go back to where it was," Schrenk said. Wells Fargo agreed to make the change and Selective would refund the overage to the mortgage company.
But it took more calls with Wells Fargo, Selective and Schrenk's insurance agency. "Everywhere I go they tell me to talk to the other person," Schrenk said. "It's a complete runaround, vicious circle."
But Schrenk said he and his wife didn't want to deposit the checks. The problem is between Wells Fargo and Selective, so they should handle it, he said.
Schrenk contacted Press on Your Side for some help. "To me, it's one of those situations where someone puts their hand in your pocket and takes money out," Schrenk said.
Press on Your Side contacted
A Selective representative stopped the refund checks and reissued them to Wells Fargo, according to an email Schrenk shared with Press on Your Side. Schrenk's flood policy was renewed with the correct coverage.
Schrenk was happy for the help. "You were most helpful at making them move and act on this," he said.
PRESS ON YOUR SIDE: House gone; bank wants flood insurance anyway
In a statement, Wells Fargo Home Lending said it adheres to federal requirements for flood insurance coverage on properties with mortgages.
Schrenk's flood insurance was increased due to the estimated replacement cost value for his home, the company said. The low option only provided coverage to
"In order to ensure that
The company said it worked with him to obtain adequate flood insurance coverage without a "significant increase in premiums." Wells Fargo had requested Selective to send the refund directly to the company, but Selective refused, saying it could only do so if Schrenk asked. He did, and the insurer agreed to send it to the mortgage company.
"His payment will remain the same until we receive the refund checks from Selective, at which time we will adjust the payment to reflect the increase in flood coverage," Wells Fargo said. "Any unearned premiums will be properly credited to his escrow account at that time."
Schrenk said he previously had a gap policy as his mortgage balance was about
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