Homeowners Say Chase Pocketed Insurance Payment w/out Promptly Crediting Account; Sue Servicer For Credit Rating Damage, Inflated Fee Clip

In Galveston, Texas, The Southeast Texas Record reports:

• A Galveston County couple accuses Chase Home Finance LLC of mishandling a house payment made after Hurricane Ike and providing false information to credit bureaus, recent court documents say. According to a lawsuit filed July 20 in Galveston County Court No. 3, Sam and Jennifer Finegan informed the defendant that they will pay off a loan for their Hurricane Ike-damaged residence when they receive their insurance claim.

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• The plaintiffs issued Chase a check for $20,000 in November 2008. They claim the defendant, however, did not properly apply the payment, but submitted negative credit information to various credit reporting agencies instead.

• Chase continued to hold on to the funds without crediting the account, the suit says. The plaintiffs argue that they tried to address the situation, but were unsuccessful in reaching an authority. Chase's errors and lack of response inflicted damage to the Finegans' credit rating, the suit states.

For more, see Couple claims finance company ruined their credit.