My fiancée and I purchased a home using his VA benefit. We have been told by our Lender and Realtor that on a VA loan, the buyer cannot pay escrow fees. Because of this, our lender agreed to pick up the escrow fee and other costs we could not pay. The escrow company was picked by the seller and has miscalculated closing costs and has provided poor customer service throughout the process. After going from owing and additional $13k to $3k to $300, we finally closed this week, got our keys, title was transferred and escrow closed. The very next morning, escrow began to call and say that they had miscalculated their own fee and that we should pay them an extra $500. Our Lender is involved and as clearly reminded them that it is against the law for them the request escrow fees from a VA buyer and if they miscalculated their own fee and did not get it from the Lender before close, it's their loss. Escrow has continued to call and offered to move money around in our account so that it looked like something else wasn't paid so that they could get their fee. Isn't this illegal? My question is are we legally obligated to pay the extra fee? If not, can escrow decide not to pay our obligations with the funds in our account, file a law suit against us or any other repercussions if we do not pay the extra $500.
Mortgage and house is in CA.

