Issue: The bank’s new payment portal created significant “timing lag” issues.
The “Midnight Under-Balance” Loop:
Small automated transactions (e.g., Apple subscriptions) would post at midnight.
This would occasionally drop the account balance by a few dollars below the mortgage payment amount.
Large incoming deposits would clear at ~3:00 AM on the same day.
Despite the funds being available for 21 out of 24 hours in a single business day, the portal would trigger an “Insufficient Funds” bounce at the midnight cutoff.
Bank Response: Zero investigation into technical lag. The bank assumed “bad faith” and moved to restrict future payment methods.
2. The $2,007 “Guaranteed” Check Saga
The Check Type: Cody issued a check via CheckRider.com / Square.
The Logic: These services deduct funds from the sender’s account immediately before issuing the check, effectively working like a Money Order or Certified Check to guarantee funds to the recipient.
Bank Mismanagement:
Upon receipt of the $2,007, the bank failed to apply it directly to the mortgage.
Internal Transfers: Funds were moved into a separate savings account, which was then “locked” by the manager.
Inconsistent Accounting: Manager produced documentation showing amounts that did not total correctly to the original check amount.
Summary: The bank held the funds while claiming non-payment, contributing directly to the default record.
3. Evidence of Lack of Due Diligence
Selective Certified Mail: Bank records show they sent certified mail to corporate entities (credit card companies) in the same case but deliberately chose NOT to send certified mail to the primary defendant (Cody), despite knowing he was pro se and disabled.
Delayed Signage: Video evidence confirms “No Trespassing” signs were staged/bought (Walmart bag) and posted after the removal, proving the bank could have provided this visual notice months earlier but chose not to.