Flagstar BankReviews of flagstar.com

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!

The Strongsville location is where I bank and it’s the best bank I’ve ever had

Great bank - never had a bank that cared so much

This is the worst bank in the US. Every few days their app doesn’t work so you can’t transfer money. Then when it does and you do it says you don’t know have enough money in your account. I got stuck for 30 min trying to get gas and had to call a friend to come get me. Absolutely pathetic bank, never bank here. Their customer service is a joke they need to cease to be a company and the world would be a better place

This bank is a mess!!

I am amending my review. After almost 4 years and multiple attempts to get satisfaction, I am happy to say that Shiela, the manager of my home branch, figured a way that allowed the bank to release the balance of my father's VA account. It was settled this past Saturday. As my Dad would say, "the squeaky wheel gets the grease." If you have an issue with this bank, and I can see that many do, keep trying. It worked for me. Dad is smiling down from heaven.

This is an online bank with limited service and terrible customer service. I opened the account because it stated it had a physical location near a place we often visit. However, it was only an ATM. In trying to close the account, customer service was awful and they made the process difficult. I would not recommend using this bank. I wrote the letter to close and included the documents they requested, only to be asked for more documentation of my address, even though it is the address on record. Just not a good experience overall.