Chase Manhattan Bank Complaint

Home Equity Line Of Credit - Line Of Credit

4
Helpful Votes
Posted By: allegorical on 9/2/2008

Location: new york, NY

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 I fell behind on 2 payments on a credit card that is no longer active.


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    User Discussion - Add your 3 cents!


    Suusan B. (09/02/2008)      
    Banks that issue mortgages and HELOCs are looking for any way possible to either freeze or cancel the line of credit due to the decrease in the value of homes.

    kbgpin (09/17/2008)      
    My son just had his HELOC canceled in middle/end of a home remodel project. His credit is perfectly fine- this was just an example of how banks & insurance co.'s will do anything no matter how unethical to rake in the money and screw their customers. It was never mentioned to my son that this could happen- yes it was in very small print somewhere in the contract. He was given no notice- just found a return check charge. We need to stop utilizing these institutions and slam them every chance we get-- they only understand the pocketbook bottom line.

    snoopy123 (09/24/2008)      
    Chase is the worst.

    kkrober (10/06/2008)      
    Did you get the email of the CEO yet? I have a similar case and if you read the contract I think they are in violation of breach of contract. In my situtation the only thing that changed was that I opened 2 new credit cards (never mind that I closed two) but my points dropped and they are using that to suspend my account -- WITHOUT NOTICE. I think we need to find a lawyer that wants a class action lawsuit.

    donadame (11/01/2008)      
    Chase is not the only bank freezing HELOCs. Do a search on the web and you'll find many banks are doing this even when their customers' credit reports are fine.

    It sounds as if you have more issues with Bank of America than you do with Chase. Just remember that HELOCs are borrowed money - it's money not yours to begin with. Therefore, YOU don't get to make the rules. Any bank can see you as a risk and freeze their lending to you and they can because it's THEIR money - do not rely on someone else's money and you'll be okay. :)

    Fuego (04/24/2009)      
    Chase suspended my HELOC too! I have an 800+ credit score, unchanged income and 80% equity. More than enough equity to justify the line of credit I currently have. Chase requested a form 4506 to get a transcript of my tax returns. I sent it to them as they requested. They then sent a letter claiming I never sent the form, and my account is frozen. So, I faxed the form from one of their branches. Still they claimed they did not receive the form. It took a complaint to the OCC to get them to finally admit they had the 4506 form! It's been thirty days, and every time I contact Chase I get a new LIE! I'm so sick of this. Does anyone kno ... more >>

    Miles Thomas (02/24/2010)      
    I'm glad these bozos are getting sued. If your Chase heloc was closed, read this and get in on the class action suit: http://www.helocbasics.com/class-action-suit-filed-against-chase-for-heloc-freezes/


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