AboutShane Expertise Hello, my name is Shane. I currently work at a financial institution in customer service and sales. I am able to answer most questions you have regarding banking products and services, how to use them, and what products may benefit you best. I can also help you to weigh the risks of various types of savings vehicles such as questions pertaining to CDS, money market accounts, etc. Feel free to ask and I promise I will do the best I can to answer.
Experience Customer Service and Sales call center experience. Assists in training new hires for customer service. Well versed with FDIC policies, banking compliance laws, and a wide variety of product knowledge.
Organizations American Association of Medical Assistants
Education/Credentials High School Graduate and Medical Assisting Diploma
Awards and Honors Significantly exceeds expectations annual review from the bank I presently work at
We own a home in a desirable area of CA, purchased in 1985, with hundreds of thousands of equity in it, even considering the recent reduction in home values. Sometime around 2002 we took out a home equity line of credit (HELOC) with Chase for $75,000. We used about $30,000 of it for some foundation work and landscaping, which we have paid back over time and now owe only $4000. We were never late or missed a payment and we have a stellar credit rating. So, there should be $71,000 left. We plan to do some more home improvements (adding a room and kitchen remodel). Before signing a contract with a contractor I did my due diligence by contacting Chase and asked if everything was OK to go ahead and spend the money. I was told everything was fine for spending the full line of credit on July 20. I have the name of the person I spoke to. On August 14, Chase reduced the line of credit by half, claiming that my home value no longer supported the entire amount. (Even so, the home value stated in their letter indicates over $200,000 of equity that has not been borrowed against.) I looked at their online tool and they have the wrong number of rooms for our house and the square footage is off by about 500 square feet. I think they have a bogus value assigned to my house, but the appeals process requires that I get an appraisal done by a Chase-approved appraiser at my own expense in order to restore the line of credit. I think that they have an "oral contract" obligation to keep the line of credit steady for a reasonable period of time pursuant to my conversation with them on July 20th. They claim I should have spent the $75,000 on July 20th, or else they have no further obligation and can change the line of credit at any time. It is unreasonable to hire and complete a financial transaction like a home remodel within 24 hours. I would like to pursue this with banking regulators, or other agencies that can stop this consumer fraud. What steps do you suggest that I take? Thanks for your advice.
Answer Hello,
I work at a bank that is doing the same thing with credit lines. I understand that you are wanting to bring this to the attention to bank regulators, and people have. But in various paperwork you have received/signed etc, more than likely at the time of closing, state that banks can change the terms of your account, your credit line, your ability to draw with or without reason, with or without cause, with or without notice.(I am not an employee of Chase so i dont know where you would find this specifically in their contracts)
California, regardless of location has been hit the hardest, the place I work for now is offering people incentives to those we didnt lower their lines to close their accounts altogether.
Regarding the conversation you had with the associate, being on both sides of the call center fence her, (I am now a sales associate, but was a supervisor in the customer service department), nothing a bank employee saids "overrides what is in writing", any and all written communication from a bank supercedes what may be spoken.
This is not consumer fraud, this is loss prevention action being taken by the bank. This is happening with almost all banks nationwides on any lines of credit, including reduction of credit card limits.
In your case,the sources chase use to obtain home value information returned a value much less than what you are claiming it should be. Chase goes by these numbers. Therefore, the decision has been made to lower your limit. If you want to appeal it, any cost in doing that such as an appraisal would be done at your cost. Banks are allowed to do this by law.
Re the conversation on july 20th, what you could have done is taken the draw and put it into your checking account at that time we see a lot of people doing this. Many times even as soon as the next day after you speak with someone, your line could be frozen.
Should you decide to get in touch with the banking regulators, their answer is going to be, yes this is a common practice and allowable by law, you will need to take the dispute up with your bank. On a sidenote, bank regulators are encouraging banks to do this proactive approach re loss prevention.
in conclusion, I would suggest trying to go with another lender, I know wells fargo is in your area, you want to consider giving them a call. but basically, unless you are willing to pay the appraisal fee, the account with chase is a loss cause and you will have to seek out financing elsewhere.
the agent you spoke with, im sure he/she saw that you had available credit at that particular moment in time.
the steps at this point are simple....decide whether or not you will pay the appraisal fee,if not would be to seek lending from another lender.
