AT&T Payment Delay Nearly Cost Clark County Resident His Home

A $10,000 debt nearly wiped out the mortgage on a family home after a two-day delay in a disability payment. Henry Adams, a former AT&T employee, faced immediate foreclosure action following the error. The incident stemmed from a glitch at a third-party benefits provider. Adams said the bank told him he owed nearly $10,000 in back payments. He had to act quickly to save the property where he raised his family.

Adams resided in the home for nearly two decades. He and his late wife, Ellen Adams, served as pastors in Atlanta during that time. The couple also ran a homeless outreach ministry. Adams, who survived cancer years earlier, receives long-term disability income from AT&T. He later found work in cybersecurity to supplement his income. Ellen Adams battled breast cancer for several years before her death.

The family enrolled in an FHA loan modification program through U.S. Bank as health costs rose. The program paused the mortgage for several months. It then required three consecutive on-time trial payments for final approval. Adams admitted his wife to the intensive care unit on April 1. Hours later, the bank called. The scheduled disability direct deposit had not arrived by the end of the month. The mortgage payment bounced, and the bank removed Adams from the trial program.

“If you miss that trial payment, there is no do-over,” Adams said. “There is no grace.” The disability provider later acknowledged a systemic issue that delayed payments by two days. A letter dated April 8 notified recipients of the delay. Adams said the provider did not alert the thousands of people it serviced. None of the recipients knew their direct deposits would not be in the bank by the deadline.

“They had a glitch in their system,” Adams said. “They didn’t alert the thousands of people that they were servicing, so none of us knew that our direct deposits would not be in the bank by the last day of the month.” Adams said he faced foreclosure in the house where his daughter, Caitlin, was born. Caitlin is now 21. Adams said he never expected to face such a threat in the home where the family celebrated their life together.

When asked who should be held accountable, Adams said, “I hate to blame the long-term disability department.. but now we could possibly be homeless.” Ellen Adams died at the hospital hours before a local news team met with Henry Adams. In a recording of a sermon she delivered before becoming ill, she preached that Jesus would not leave them in sorrow.

U.S. Bank contacted the FHA program to seek a policy exemption. The bank allowed Adams to restart the trial period in July. “When [the bank] called me, I could not stop crying on the phone,” Adams said. “God rescued us and he used you all to rescue us, to help us, to support us. You came and sat down, and you listened, when a lot of other people wouldn’t listen.” Adams is now focusing on raising money for his wife’s funeral in early June.

A U.S. Bank spokesperson said the mortgage is an FHA loan. The bank must follow servicing guidelines, which include automatic actions if requirements are not met. The spokesperson noted the bank values its relationship with Adams. They worked directly with the FHA on a policy exception. The bank will offer reinstatement to the trial plan. An AT&T spokesperson said the incident stemmed from a system error at a third-party benefits provider. The error affected a small number of people who receive long-term disability payments from AT&T.

AT&T apologized to Adams for the disruption. The company is working closely with its vendor to ensure the issue does not recur. AT&T reached out to the third-party benefits provider for comment. The provider did not respond. Adams advised other borrowers to pay loan payments early when possible. He recommended checking bank accounts often to verify deposits arrived. He also suggested asking lenders about hardship exceptions if payment issues occur.