WaMu decided on 4-2-08 to reduce the credit line on my home equity line of credit to $0 because the value of my house went down. This was explained in a letter I read today, 4-8-08. In the mean time, I wrote a sizable check against that line of credit.
The question is, is the check I wrote good or bad? Do I need to scramble to come up with cash all of a sudden or not?
On the phone (after being transferred twice, then dropped, and calling in and transferred again) WaMu said they cannot tell me for 72 hours if the check will be honoured, and that chances are, they would not honour it.
I did not write that check for the fun of it - I was actually counting on it. Thanks WaMu.
I can understand reducing the equity line of credit since property values have fallen, but how about having a policy they will honour checks written during a grace period? And if there is such a policy, how about telling the folks who staff the WaMu phone lines!? How about keeping your agreements?
I will certainly never solicit any further business from WaMu, nor rely on WaMu as a banking institution. Experience shows they will change their agreements without warning.