Flagstar BankReviews of flagstar.com

I closed a business account months ago and they mailed me a nasty letter telling me my account was overdrawn by $10.00 and they were going to add additional fees. I went into a branch and closed the account. I will be filing additional formal complaints against the bank if this is not resolved.

I liked that they called to verify a transfer I was making. I linked a new external account and they called me to verify my identity. They asked me several questions that were multiple choice but some were so vague. I failed twice. I believe they did this intentionally to prevent me from moving my money. I told them multiple details about myself and account and they called me on the number they have on file. Ridiculous, do not waste your time with this bank!

Working with Flagstar as executor of my father's estate has been frustrating. Different answers from everyone I speak to, when I can get anyone to return my calls at all. I live nearly 500 from NY, and they want me to come in in person. When I did drive down there I was told that paperwork I had sent three weeks prior wasn't noted as received by the branch, and was probably still waiting to be processed in the admin office. This review is about both personal banking and wealth management. Utterly infuriating.

Requested, completed, returned closing documents for my Heloc with a 10$ filing fee, my balance was $0 at the time. These documents were conveniently never filed at Flagstar. Three years later, I am still receiving statements with bills for fees that have accrued. No one will help, all I get is lies and indifference. Thieves, vultures, absolute scum is what these people are. Do not ever get tied up with this banking or loan company. You'll never get rid of them.

I called to request an ATM card. Rep said I should receive it within 10 business days. When I didn't receive it on day 15 I called customer service and was told it was not sent. I asked for another one to be sent expedititiously . Was told I would be charged $75 for Flagstar's mistake. Asked for a supervisor and was put on hold for 52 minutes and then was disconnected by them. I called back and still no resolution. It's a shame that the calls I made had bad connections. Perhaps because I was calling the Philipines . I will begin closing the account immediately.

They let me know that I did not contact them for almost two years so they closed the account, took the money, and I will have to fly to a branch in another state to get any info about it. Not to mention send me back the money.

Flagstar’s servicer repeatedly reversed my loan payments without notice, drafted automatic payments from my checking account after my HELOC was already paid in full, charged me a late fee for a delinquency its own errors created, told me I still owed monthly payments on a zero-balance paid-off loan, and issued refunds that then caused the account to show a new principal balance owed. The account has been reversed and reapplied so many times that even a careful review cannot clearly state what I owe or am owed—and the servicer’s June 10, 2026 letter floats the possibility that one of its refunds “may have been issued in error.” My written inquiries through the servicer’s online system went unanswered and my request to escalate was refused. The account remains open and continues to accrue interest. Background My husband and I opened a HELOC with Flagstar to fund repairs to our home. To obtain a reduction in the interest rate, I was required to open a Flagstar checking account and enroll in automatic payments drafted from that account. What happened (chronology) 1. Throughout the life of the loan, my principal payments were repeatedly posted, then reversed, then re-posted — frequently without any notice to me. When I called about it, representatives told me they did not know what to do with the payments. I let it go at the time, but it was clearly not right. 2. On or about March 11, 2026, I paid the loan in full. The payment overpaid the balance by approximately $51.80. On March 12, 2026, a $2.98 principal adjustment reduced that credit to approximately $48.82. 3. On April 1, 2026, the servicer drafted another $100 automatic payment from my checking account even though the loan was already paid off. That payment was later reversed. 4. On April 10, 2026, the servicer ran a series of reversals and re-applications around a $148.82 amount. 5. On April 15, 2026, the servicer drafted yet another $100 from my checking account although I owed nothing. It was held as “unapplied funds.” 6. I called and a representative agreed to reverse the erroneous $100, and told me she had to place a three-way call to Flagstar in order to do it. Weeks passed and nothing was reversed. When I called again, a different representative told me a check had simply been mailed — no one had notified me, even though I had been told it would be reversed. (I note the servicer could not promptly reverse a charge to me, yet had no trouble reversing my payments repeatedly.) 7. Per the servicer’s June 10, 2026 letter, two refunds were issued: $100.00 on April 16, 2026, and $148.00 on April 27, 2026. I deposited both checks. 8. After the refunds, my account then showed a new $100 principal balance owed. A representative tried to tell me that even though the loan was paid off, I still had to make my monthly payments — something I have never heard of and could not make sense of. Out of concern about owing money, I paid $100 on or about May 29, 2026. That payment left a $0.63 balance. 9. I was then assessed a late-payment charge for a delinquency that the servicer’s own errors created. A representative said it would be reversed, but not immediately. 10. The June 10, 2026 letter states my unpaid principal balance is $0.63 with $0.47 in accrued interest, states the servicer is “unable to apply the $100.00 refund,” and states the $148.00 refund “may have been issued in error.” The same letter states that my line of credit remains open and available for future draws. 11. I sent multiple written messages through the servicer’s online system and received no replies. When I asked for the matter to be escalated, I was told nothing could be done.

Obtained Home equity line of credit through Flagstar. After getting loan this bank has TERRIBLE customer service. Unable to speak to a person. Documents and communication via the ONLY communication portal on their website disappear. ie documents and messages I sent disappear and cannot be found. Thus if there is some time-critical communication, it is difficult to document as Flagstar either removes or deletes, messages that you send. This back obtained homeowners insurance and charged me for it RETROACTIVELY. ie they obtained insurance on my property for a time period that had passed, in which no claims, or damage had occurred to my home (documented via a homeowners insurance inspection). The worst experience I have ever had with a lender. NEVER will I use this bank again!