Chase Manhattan Bank Complaint - Home Equity Line Of Credit
NEW YORK, NEW YORK -- I sent an email to the CEO of Chase. It, of course, bounced back (I am unrecognized). Chase Bank Executives do not want to hear from it's customers and the bank workers are too afraid to lose their jobs so they run interference, never getting any opinions up the ladder to corporate.
I have a Home Equity Line of Credit with Chase Manhattan Bank. I own a property. I recently stopped working full time though I am looking for full time work. I worked for 20 years in a business that is no longer a money making field. I was approved for a Home Equity Line of Credit in May 2008 by Chase Manhattan Bank for a fairly large sum of money.
I received a notice in the mail today that my line of credit was suspended because of "negative credit information" that came up on a random credit report that Chase Bank ran on me recently. There was no warning, no directions in the letter explaining how to get my line of credit active again nor was there any information on the "negative credit information" Chase found that caused a Chase officer to make such a final decision regarding money that the bank had already approved for allocation. There was a phone number to call in the letter. I called. I not only called, I went to my bank personally to see if the bank loan officers there could do anything about this. I was told that I would need to purchase a credit report myself and fix whatever problem there was on the credit report and then send in a letter and a copy of the cleared credit report to Chase Bank, after I cleared up the problem. Until then - no money available to me.
Chase Bank made a decision suspending my line of credit based on 2 reports of delinquency reported by Bank of America for credit card non payment. I fell behind on 2 payments on a credit card that is no longer active. I had closed this credit card because it was in my married name and I didn't want any association with that name any longer. My husband moved out of the country and left me with a mound of debt that I have been slowly repaying.
So Chase suspended my line of credit, after 2 silly delinquent credit card payments from another bank institution. I have been working part time and paying all my bills. The credit bureau report from Bank America reads "consumer closed account" and delinquent payment for 2 months. Most important is that there was money paid to Bank America on the delinquent payments via a direct deposit from my Chase checking account because I had made a deal with a collector from Bank of America who offered a reduced monthly payment to me for a few months. They did not disclose to me that the reduction doesn't change the fact that the payment is delinquent. The way it works with them, which I found out today, is that even though I paid partial payments, it is technically considered delinquent. Why would Chase Manhattan Bank choose to use this ridiculous credit report to make a huge decision over finances that rule my daily life, instead of my history of payments and business dealings with Chase?
Since Bank of America reported these 2 partially paid payments as delinquent to the credit bureau (and they should be crucifed for this), my credit rating has plummeted to 520 and my home equity line of credit was suspended.
The fact that I have banked with Chase for 20 years is not significant. I had direct deposit scheduled for repayment of this Line of Credit. I cannot believe that Chase Bank would suspend my line of credit, because of 2 minor inaccurate reports by the Bank of America, even though I own a home and the equity in the home is enough to repay the debt. I cannot understand how Chase Bank could get away with closing a line of credit, when they are
getting paid on time every month? There has not been any delinquent payment at all on my Chase Line of Credit. On top of that, I have been a good customer to this bank. I'm not penny pinching and sometimes paid high ATM fees. I've travelled throughout the world and used my banking card internationally, paying large fees to Chase in addition to monthly overseas wire transfer fees - incoming and outgoing.
When you call Chase, you can't get a person with decision making power on the phone. All of their bank employees are bound by very strict company policies and the consumer can't reach the policy makers at Chase. There are no personal decision makers any longer available to the customer, not even in person in the banks themselves (they all blame the corportate office for the policies). There aren't any flexibilities in their policies that are fair to the consumer.This is a terrible way to do business. Sounds like they hired a cookie cutter consultant with inaccurate research on how to make more money by screwing people over. I've seen this before in various other businesses (in the long run - they all lose mega billions after their CEO's get mega millon pay-offs after running these companies into bankruptcy with their genius anti-consumer theories).
Though this is a letter from a frustrated customer, it is more than that because quite frankly, they are engaging in unfair and unethical business practice. Anyone who takes a home equity line of credit is in pretty dire need of the money. And anyone who is using a credit card is too. And any bank that recinds the money after approving it, without taking into consideration the economic situation of the borrower, is the lowest of the low.
If they were a good consumer oriented company, they would have reached out to customers upon a red flag raised, and at the very least, proposed reducing the loan amount that the bank would make available. That would be good, and fair customer service. This cancellation of my credit line, notified by a black day letter,
without any information attached to it, and a robot voice on the end of the line is purely sinister.
There is really no accurate evidence that I will default on my loan. The fact that I own my home, and that this is a home equity line of credit, that was previously approved for a specific amount against my home, is a guarantee of a return of the money. None of this makes logical sense. In fact, the bank will make more money if they kept my line of credit active. It is not right for Chase to penalize me for my dealings with Bank of America (which is really not any of their business). Bank of America is very wrong here and I am going to deal with them on this but that should have no bearing on my business with Chase Bank.