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Bank Of America / hold on equity account!

1 Chico, CA, United States Review updated:

Bank of America has just put a hold on my home equity line of credit account without notifying me. My credit score remains a solid 700-plus with no recent changes. My payment history is absolutely perfect. I have never had a late or missed payment on anything my entire life. I have been doing business with BofA since 1993. They have my first mortgage, my home equity line, 2 personnel checking accounts, my corporate checking, corporate savings, and a corporate SBA express line of credit. They say they canceled my home equity line simply because the recession and mortgage crisis have lowered my property value and the loan to value is now to high. I asked why they didn't notify me and they said that a letter was just put in the mail yesterday. Yesterday doesn't cut it! Why not just pick up the phone? It just so happened that I was in the bank trying make a transfer from equity to cover a business improvement that I already made, and I thought I was using money that I could count on. It also happened to be payday for my employees and the business account was not OK. Not a nice feeling when the teller says your account is frozen in front of other tellers and customers. I also had to race to stop my contractor from continuing a structural change on my home add-on that we were financing through this line.I lost a half of a day during business hours trying to shake down accounts receivables and basically embarrassing myself in front of my customers. I had to tell them that they were not late but I needed the money. All the while my business was running at half rate with the boss gone. The amount of financial stress I went through was indescribable. I have plenty of financial resources but everything takes planning. I should not have been put on the spot like that. The last point I need to make is that my home value has not dropped as much as they think. They never gave me a chance to re-appraise. Since the last time they appraised me I have completely landscaped, redwood fenced, planted 5 large trees and 20 shrubs, installed auto sprinklers, completely remodeled the mother in-law suite (top of the line), and added on a cathedral ceiling/ glassed in patio room. My home value has not dropped nearly as much as they think. They just never asked.

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Comments

  • Ch
      23rd of Mar, 2008
    0 Votes

    DITTO here pal. Same thing happened to me! It's so ironic that on the day my HELOC from BOFA got frozen that I received an email from them telling me that I should apply for a HELOC as the FED just lowered rates. Thanks BOFA for a great lesson in communication. Some forewarning would have been nice!!!

  • Br
      1st of Jul, 2008
    0 Votes

    Chase Mortgage did the same thing to my LOE with them without even a letter or email. I've never missed a payment, have only 7% balance outstanding and have a +700 credit score. The said that the property was reassessed and is below the 80% LTV. Not 4 years ago they were happy to give me 95% LTV and my financial situation has only improved since then with the exception of the market dropping. I understand that they are probably loosing their ### because they were greedy and all too happy to give 95 - 100% LTV when the market was good. Now that the ### has hit the fan they are screwing customers that have good standing, but are victims of a housing market crash that they helped perpetuate. Way to go. All I can do is pay it off so that they don't get any more interest from me and NEVER, EVER use any of Chase or JP Morgan's services.

  • Sc
      30th of Jul, 2008
    0 Votes

    So last week a web site hosting company that I have auto debit for services set up with emailed me that my card had been denied. Then this last weekend I went to the ATM to get some cash and my card was rejected. Today another company set up with auto debit called me to say my card was denied. So I got motivated to call Bank of America customer service to find out what is going on.

    First of all the "customer no-service" rep asked me for my SSN over the phone and I balked. I informed her of my discomfort in that and she automatically took a tone while telling me it was necessary. I told her to look up my card number instead. She complied.

    I outlined the problem and she informed me that an alert from "MBNA" showed up at their ATM protection unit indicating that my card "may" be in a group of cards that were used at a business that had been compromised. For that reason they cancelled my card. They could not provide any details of the business that my card "may" have been used at because they do not collect that data. So... they could not tell me if my account info had been compromised or not, and could not tell me what business reported the compromise. It gets better.

    So Debra at customer no-service says they mailed me a new card 3 weeks ago. To WHERE? Wait for it... the address I lived at 3 years ago. When I tell her they blew it, she goes off on me like an ex-girlfriend and tries to out talk me by talking without stops and over me to shut me down. I play for a second and then got bored. I asked why they sent the new card to the old address. She says that's the address they have for me, and acts like it's my fault that the info is not updated. She says when my wife came into the branch to change the address the teller only updated her profile. That is redamndiculous that they didn't update the account info, and I reminded her that I am primary on the account and ALL statements come to my current address without fail. She just says "Well that's how it is". Anystoop, She will be sending me via second day my new card. I had to ask though, if it would be a different number than the one on the card they send to the wrong address and she said "Hang on let me check" OMG! She had to check to see if she was stupid. Because that is what it would be if she had done that.

    So, let's review. Bank of America cancelled my debit card on a maybe due to a possible compromise at or "near" a company that my card had been used.
    They mailed me a new card to an address 3 years old. Blamed me for old account info, even though ALL statements and company offers are sent to the correct address.
    Mis-treat me when I rightly express frustration.
    I am now responsible for contacting all companies I contract with and have auto debiting set up with to set up all new billing.

    Thank you Bank of America for a job well-done...NOT

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