We had an XXXX loan on our house. The 20 % loan, XXXX mortgage, was with BOA, Bank Of America. It was for a term of 10 years, but I wanted to accelerate the payments since it was such a small monthly payment. Every month I would pay XXXX to XXXX times the monthly payment expecting that they would apply the excess to principal. No, they DID NOT apply the excess to principal, they applied it to the coming payments. IE if I had made triple payments in XXXX, I would n't have had another due until XXXX. I called them, told them this was incorrect and their response was, " fine, we 'll fix this. Please write FOR PRINCIPAL ONLY '' on all payments in excess of your original amount. Fine, lesson learned. The next month I wrote XXXX checks, XXXX for the amount of the XXXX mortgage and XXXX clearly marked PRINCIPAL ONLY for XXXX times the mortgage amount. The same thing happened, they applied it to the coming months payments. I again contacted them and was told that it would be taken care of. Well, this time they took three months of payments out and applied this to principal, thus putting me late for the current month 's payment. At the end of XXXX years I had a ream of notes and NO patience left with BOA. they had " misapplied '' every XXXX OVERPAYMENT on my part to their benefit. If they did this with my payments I know they were doing the same thing with everyone else 's thus resulting in some heavy interest on their side. After two or three years of constantly fighting with them about this issue, and NEVER being able to reach the same person to fix it, I told my husband that we had to pay it off in full or I was going to have a breakdown. We did pay it and I was so happy ... until we refinanced and our primary loan was sold to BOA. It seems that the " misapplication '' of funds has stopped ( I still pay more than the original loan so that the principal can be paid in an accelerated fashion ) but I check every month because I ca n't trust them to do the right thing. I hate BOA from the depths of my soul and if I had my way there would be many bankers in jail. 
