Citifinancial Mortgage Company Extra Principle Payment Money NOT applied to my account Irving Texas

I just found out today that the extra principle money that I sent to Citifinancial using their "Speed Pay" system was not applied to my account. I paid $300 extra on 12/29/03, 23.66 extra on 1/30/04, and $123.66 extra on 2/27/04. They put it in a "holding fund" and waited for me to notice that my extra principle payments were not being applied to my account.

I spoke with a girl named Michelle at Citifinancial Customer Service today. She asked me what I wanted to do with the extra money I paid. Dah? I don't have an escrow account or PMI so to be that is a no brainer.

She said she will apply it to my principle balance TODAY and it will take about 3 days. I told her that I wanted the money to be applied as of the day that they received it...12/29/03, 1/30/04, & 2/27/04 as this affected the amount of interest I pay on the loan.

She told me in an arrogant tone, "your principle payments have nothing to do with your interest!" I replied , "Yes it does as I have been paying interest on a higher principle balance since my extra payments were not credited to my account. Therefore, I've paid more interest than I should have." She disagreed but finally agreed to send me a history of my loan without charging me the $10 fee.

This is a scam! I plan on writing Citifinancial Mortgage too!

Lynda
NE, Arkansas
U.S.A.