Quote:
Originally Posted by sweet pea2007
I begain having problems with a bank that I have done business with for over 30 yrs.. first I put my daughter on my checking account when I became ill so she could pay my bills if I wasn't able to.. at the time I put her name on the acct I told the person that was in charge why I was putting her on the acct.
after 6 yrs had gone by I noticed a check for almost 400.00 had been taken out of my acct. I went to the bank as soon as it opened ( I have on line banking) and was told it was one of my daughters checks from her acct. she didn't have enough money in the account to cover it so they found her name on my acct and took the money from me. at that time I was advised to take her name off of my acct and I did..
Now the next problem that I had with the bank was acommercial loan for a small personal care home. when I became disabled I leased the home. the mgt was always paid on time til the person leasing it didn't want to renew her lease. I have tried for 2 yrs to sell it with no luck. a couple of the payments were late.. never totally missed a months payment. I had to borrow money from my son to keep paying the mgt. meanwhile all the residents had moved out and there was no income. I called my bank and asked if I could possibly pay the interest til I could sell the property or lease it. they were not happy about anything and finally agreed to let me pay interest for 3 months. the bank would send me notices of what I owed about 3 times a week and they would have at least 4 copies of the amt due along with the late charges.
they were always talking about foreclosure even tho I made all the payments when they requested it. Finally my son said he would buy the property just to help me out.. I have paid over 80,000 in interest in 6 yrs for the building.
the mtg payment was 1750.00 a month and 2 days ago my interest for the place went from 6% to 9.75 % with the mgt payments up to 2200 a month.
My son is still working on a mgt so he can take over. Is this legal for the bank to jump from 6% to 9.75?
Next I had some C.D.s that I borrowed against because I needed the extra money when I started the business. I had decided not to renew the c.d.s because it was to hard for me to keep paying the interest on them and told the bank not to renew them but to cash them in when they came due and apply it to my loan..well the first cd came due and it was applied to the loan but they took 188.00 out of the cd. when I called and asked why they took that money out instead putting the entire amt towards the loan I was told there was interest due.. actually I had paid the interest a week before the cd came due and they never called to tell me what they were going to do they just did it..
maybe what they are doing is legal and maybe not. I would like to know. I have always paid my bills on time except for the mtg that has been late on the business. I have taken my savings acct out of that bank and closed my safety deposit box.
Now my question is does the bank have the right to take my money the way they have been taking it? can they raise the interest on the mgt buy 3.75%
and who can I complain to?
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Your best bet is to contact an attorney proficient in banking law in your area as soon as possible. Bring in as much documentation from both loans and your bank accounts as possible. There are so many questions here, it's difficult to answer everything accurately. I would question banking ethics that allow the bank to withdraw from one of your accounts to cover another, but it's very likely current banking laws allow them to do that in order to recoup their loss. In regards to your commercial loan, regardless of your personal circumstances, i.e. no tenants, you entered into a contract that bound you to monthly payments. Period. Whether or not you can afford them without tenants is irrelevant to the particular bank, you owed (and still owe) on that loan. The same holds true on your CD. All terms and conditions of borrowing should've been clearly disclosed to you, as required by law, at the time you opened your account. That being said, if a 'double payment' has been made for the CD loan, the bank is required by law to refund the extra payment. Has that been done?
You may want to check out the following site:
Federal Bureau of Investigation - Mortgage Fraud, particularly in regards to adjustable rate mortgages. While I'm by no means suggesting this was done in your case, it's something you (and your son) should be aware of, particularly if your state is highlighted as a 'hot spot.' Without physically reviewing your mortgage documents, I can't begin to assess whether or not you were put into a financial situation you couldn't possibly repay...or whether or not the value of your property was inflated at the time you took out the loan. But because it's become part of a national epidemic, I think you should start researching and asking questions. Hopefully, if you conducted business with an FDIC-insured bank (and not a mortgage company,) none of this will even apply. You may simply have entered into an adjustable rate mortgage or even interest only mortgage you didn't clearly understand from the outset.
Again, an attorney can carefully review all of your banking/mortgage documents to make certain all disclosures, documents, etc. were executed in accordance with both federal and state laws. (Most likely, they were.) I would also suggest you have your son educate himself as much as possible before he signs
anything .. yet another good reason to have an attorney involved.
Hope this helps. Good luck to both of you.