Franklin Community Bank Complaint - Franklin Community Bank does not care about customers

Review by TomT on 2010-11-28
ROCKY MOUNT, VIRGINIA -- This review is in regard to a commercial loan I co-sign for a business which I was not involved in the day to day operation. You can read my entire story of by going to www.FranklinBankDoesNotCare.com, but basically the owner sold the company which the bank had a lien against. These proceeds could have paid off the loan. The bank knew of the sale, knew about the money but did not make an effort to go after the money or inform me of this transaction. I contacted the bank president by writing a lengthy letter outlining my concerns. Certainly the bank president of a local community bank would take the time to listen to my concerns. The president never acknowledged my first letter and after 45 days I received a response from some branch person who was never involved with the loan. After finding more issues I followed up with a second letter. Again, the president of the bank, and remember this is a community bank with 3 branches, did not acknowledge my letter, made no effort to contact me or listen to my concerns. Again, about 3 weeks later I receive a response from this branch person stating that they knew of the payment (which could have paid the note off) but decided it was in my best interest not to. At this point I did not know whether to laugh or cry. I thought, how can someone be some arrogant to state they made a decision that was in my best interest unless they asked me. I was in business for years and have worked with numerous banks. This bank is by far the worse experience I have ever had. They worked against my best interest and treated me as collateral, not a customer. Neither the president nor the board of directors had any interest in communicating with me to determine my concerns. I don't know if this is arrogance, or they realized had badly the screwed me and can't honestly look me in my face and tell me they didn't. I did learn that everything the bank did was legal, but ethical? I don't think so. You would think that a community bank would be different from the large Wall Street banks, but in the end this bank is worse than the large Wall Street banks. It is ashamed I get better service from my local hotdog stand than I did from the president of this bank. There are far better banks out there in the Franklin County, Smith Mountain Lake area. I really don't understand why anyone would want to do business with this bank
Comments:9 Replies - Latest reply on 2010-11-30
Posted by T on 2010-11-28:
You yourself state that the bank didn't do anything illegal. What I don't understand is why you didn't go after the person who sold the company, and received payment that you say could have paid off the loan. Isn't your beef with him/her?
Posted by madconsumer on 2010-11-28:
were you a co-owner of the business? if not, and only a co-signer to the loan, you are best to seek a lawyer to assist you.
Posted by T on 2010-11-28:
Alright, I took the bait and visited your website. It sounds like what your partner/friend did was illegal, and what the bank did was "100% legal". You are a cosigner on the loan, so the bank will act in its own best interests to be repaid by Charlie or you. That is what banks do.

Have you created an equally extensive website, exposing the illegal activities of your buddy Charlie?
Posted by Anonymous on 2010-11-28:
Did Charlie include you in the bankruptcy? I think you need a very very good attorney.
Posted by Venice09 on 2010-11-28:
Good question, trmn8r.
Posted by TomT on 2010-11-29:
Thanks for your comments, but would like to respond.

trm8r - I have gone after the business owner, but he filed for bankruptcy (chapter 7) and has a bunch of debt, and yes I am documenting this entire ordeal with him and the bank on another website which I am still working on. My beef is with both. First the business owner did something illegal, and 2nd the bank allowed him to get away with it and not even tell me for months that the business was even sold and the collateral gone.

As to baiting you with the website, you act as if I am spamming you with an ad or something?? I am just making my case, no ads, not trying to sell anything.

Yes the bank did not do anything illegal, but let me ask you an honest question. If you co-signed a note for a friend to buy a car and the bank held the title. Then your friend went to the bank and asked for the title to sell the car, but agreed to pay them sometime in the future, and he promised. And the bank said, OK (which they can legally do)because they knew you were still a co-signer, and then your friend did not pay and the bank then came after you for the entire loan. Would you just say, well the bank can legally do this so oh well I guess I will just pay it. Would you honestly not feel as if the bank did you wrong? A bank is a business and good businesses don't make decisions based solely on what is legal, but what is also ethical.

This is a review I am making of this bank with my experience. I had a bad experience and want to tell others, no difference than if I had a bad meal at a restaurant. Take if for what it is.

madconsumer: I have hired a lawyer and spent a bunch of money only to find out the bank did not do anything illegal as they can basically do whatever they want, and besides they have more money than me to spend on an attorney, so I paid off the loan.
Posted by T on 2010-11-29:
You paid off the loan as you were obligated to do. That is the liability co-signing leaves you open to.

I wouldn't hesitate for a moment to use this bank after reading your story. Not a moment. Banks are out for their own interests. They lend money to make money. I honestly don't blame them for doing whatever is legal to get it back.

I'm very sorry about what your friend/associate did to you. I have my own $130K loss due to an associate's bad acts I am currently dealing with. I will end up with a 20 year non-dischargeable claim against his assets. I didn't research carefully enough before investing with him.
Posted by TomT on 2010-11-30:
As a small business owner for 25+ years, I know I did not operate my business like that, and neither do good businesses. I understand that banks are there to make money, but I have dealt with many banks over the years, and none would have done this.

Banks are businesses, and businesses to be successful in the long run have to do what is right, not necessarily legal. When you have lawyers running your customer service department, you are doomed to fail in the long run.

Can you honestly say that the bank did nothing wrong? The bank had the money, but allowed the owner to pay others. Also, you find nothing wrong with the President and others not even wanting to communicate with the customer? I mean, that is basic customer service. Even if they did nothing wrong, I wouldn't do business with a business that won't even listen to their customers.

I guess we agree to disagree, but enjoyed the discussion.
Posted by BofAmerica666 on 2010-11-30:
Thanks for the follow-up TomT. I found this review very helpful. Goodluck!

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