Can You Bank On Your Bank?
by Cynthia Bercowetz
Bloomfield, CT  06002   July 11 2005
 
Is your bank customer-friendly?
Some of the foul-ups that occur can be blamed on when a bank takes over another bank. Sometimes the bank cannot integrate the software of the bank it bought.
There are many horror stories where customers have paid their monthly mortgage payments and have found that their banks have foreclosed on their homes. Some banks claim that the customers have sent their automatic payments to the wrong location.
My bank of 25 years turned over its mortgages to another bank. Problems started when I sent a payment to the bank that took over my mortgage. When I was told that my payment was not received, I sent another check to cover it. The first bank that held my mortgage always sent a statement to pay the next month's mortgage payment. The take-over bank did not do that.
When I contacted the 800 number to get an explanation, I received this message: "All of our sales representatives are busy. Please wait for the next available representative. Thank you for your patience."
This message would have been all right if I weren't waiting on the line for one hour. I clocked myself. Consumers are at the mercy of big business. They are helpless to fight the automated messages.
My letter to the president did get a response. Late charges were dismissed.
Other problems can occur when you want a lower interest rate on a home equity loan. I wanted an interest rate of 4.74 per cent.
I was told for my loan that I had excellent credit. But I was approved at 6.25 percent. Why? The bank said I needed an employer to qualify for the 4.74 percent loan.
Anyone over 65 years of age has a right to retire. When I went to the bank, a customer service representative said: "Did you get a job yet?"
It was suggested that I get a co-signer. I had investments at the bank that doubled the size of the mortgage loan.
Many women are discriminated against in these transactions. They should not give up. If they do, banks and other businesses will treat them this way.
Sidestepping Snafus
If you have found that your mortgage is bought by another large lender, follow these steps:
­ Stay with paper checks. During the integration of accounts, the new bank may bungle electronic payments.
­ If you sent a payment to the old mortgage server, you still have a 60-day grace period from when your loan was transferred. During that time, you should not be charged a late fee or be reported to a credit bureau.
­ You will get faster action on a complaint, if you write on your letter: Qualified written request under Section 6 of the Real Estate Settlement Procedures Act." The mortgage service has 60 business days to fix the problem or explain why not. If you do not get a satisfactory response, write to the Department of Housing and Urban Development RESPA Complaint Office at 451 Seventh St. S.W. Room 9146, Washington, D.C. 20410.
 
Cynthia Bercowetz (consumreye@aol.com)
Author/Consumer Advocate
22 Oak Lane
Bloomfield, CT   06002
Phone : 860-243-2208

 

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