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Board index Why Chase Bank Sucks... Share your experiences with Chase Chase cuts good WaMu customer's HELOCS

Chase cuts good WaMu customer's HELOCS

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Posts: 91
Location: California

I had a weird experience in court recently that indirectly involved Chase bank. I was in court on a separate matter, as I was leaving I looked at the scheduled cases for that day and sure enough, somebody was suing chase bank in superior court in the very courtroom I was exiting from.

It appeared to me that there were not that many attorneys in the courtroom so I decided to stay and see what the lawsuit against Chase Bank was about. I think Chase was being sued by a homeowner as well. The case against Chase Bank gets called first, and the judge motions the attorney for the plaintiff (not Chase Bank but the other sides attorney) to go into chambers, because the case has been moved to federal court!

I wanted to ask the attorney for the plaintiff if he could share any info about why his client was suing Chase Bank. I waited and waited for the attorney to reappear from the judges chambers but I never saw the attorney exit the chambers. I then waited outside the courtroom for another period of time but never saw the attorney. He was very distinct looking so I doubt I missed him. It was kind of disappointing and made me feel a bit uneasy that a person files a lawsuit against Chase Bank and suddenly the case gets moved to federal court. Why? Who benefits by the case going to federal court?

Does Chase Bank have governmental connections that just empower the company to default as many of their own customers as possible because they know the cases will end up in federal court?

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Post Thu Jun 04, 2009 10:18 am

Posts: 4
Chase requested documentation of my income and I replied in a timely fashion. The Chase (Formerly WAMU) HELOC is the only mortgage I have on my property. I paid the first mortgage off last year. I have a modest HELOC representing about 15% of the value of my home and have tapped about 60% of that. That remaining 40% was a nice reserve in the event of some emergency so I did not have to liquidate assets (eg stocks) at fire sale prices. By luck I checked my credit line and observed that Chase had frozen my credit WITHOUT even notifying me. My email to them was answered with obfuscation and did not address my question. My email asked this simple question-'Why was I not notified?' (A simple courtesy email would have sufficed.) I am checking out other banks to move to and I will notify the FDIC of this heavy handed and customer relations shattering action.

Post Fri Jun 05, 2009 11:00 am

Posts: 34
JeffRussell wrote:
Chase requested documentation of my income and I replied in a timely fashion. The Chase (Formerly WAMU) HELOC is the only mortgage I have on my property. I paid the first mortgage off last year. I have a modest HELOC representing about 15% of the value of my home and have tapped about 60% of that. That remaining 40% was a nice reserve in the event of some emergency so I did not have to liquidate assets (eg stocks) at fire sale prices. By luck I checked my credit line and observed that Chase had frozen my credit WITHOUT even notifying me. My email to them was answered with obfuscation and did not address my question. My email asked this simple question-'Why was I not notified?' (A simple courtesy email would have sufficed.) I am checking out other banks to move to and I will notify the FDIC of this heavy handed and customer relations shattering action.



How long ago was this?

It is a requirement under Regulation Z of TILA that you be notified within 3 days of the action being taken. It took about 10 days for my letter to reach me, but it was drafted the very next day following the action and then mailed on the 4th day.

If a notification was never sent, I'd say you have pretty good grounds for joining the class-action.


Posts: 91
Location: California

I bet they just ignored your response and the automated system reduce your HELOC.

This appears to be a really bad thing that Chase Bank did to you.


Posts: 1
I am In California with the same situtation as many of you. earlier this year/late last year they cut my HELOC from $122,000.00 to $41,000.00. I have never missed a payment on my HELOC and both my wife and i have stable income, ample liquid assets, and above 700 credit scores. Just 10 days ago, I received a letter from Chase that because we did not comply with their prior request to provide them with current pay stubs and IRS Form 4506-T (which authorizes them to obtain to your tax information directly from IRS), our line was frozen to the balance it carriers, approximately $33K. The total ine is for approximately $42K. I went to the bank and told them that I have never received this and after much hassle, they have allowed me to complete this stupid form and submit along with current pay stubs so they can "consider" reinstating my original $42K HELOC. If not, they will kindly forgive any penalties for closure of HELOC if I decide to close it for 90 days. THis is absolute crap. I did a full documentation when I started my HELOC. I have my IRA, my credit cards and 4 checking accounts with these idiots. Why are they treating their worthy customers like this?

Mwalsh had retained a class-action attorney. Would anyone share any information on any current class action against WAMU/Chase on the HELOC suspension / reduction issues?

Thanks

Art


Posts: 91
Location: California

It appears to me that Chase Bank makes more money by defaulting customers any which way they can rather than trying to help them. It also appears that defaults lead to quick profits because Chase Bank can then charge fees and penalties. At the same time, Chase Bank is also lowering their overall financial liability by reducing credit lines. I wonder if government may then be rewarding Chase for defaulting customers by giving them "replacement money".

This type of behavior is irresponsible as it rewards sloppy and careless bank work. If Chase Bank cannot keep up on all of their customers with the proper customer service, they should sell off parts of their company so they can focus on good customer service.
Last edited by Daily-Protest on Tue Jun 16, 2009 7:03 pm, edited 1 time in total.


Posts: 34
Art111 wrote:
Mwalsh had retained a class-action attorney. Would anyone share any information on any current class action against WAMU/Chase on the HELOC suspension / reduction issues?


Art, have I already shared my attorney's contact information with you? I've been in contact with a fair number of people, and haven't kept very good records as to who and why. Email me if I haven't and you'd like to contact him - mwalsh@smad.com.


Posts: 4
Regarding previous post:
I was in error when I said that Chase did not notify me: They sent a letter dated May 28th which was when I approximately noticed on-line that my credit line was suspended. I had sent them permission to audit my 2006 and 2007 1040 forms from the Federal Government. Apparently I did not include a letter verifying self-employment income which would be an open invitation to lie-My self-employment income goes through my Chase (Formerly WAMU) checking accounts if they want verification. Most of my current income is from self-employment.
I paid off my first mortgage to WAMU. I had my credit card with them. I have deposits with Chase that nearly equals the amount I have tapped from my HELOC. I have a separate IRA and savings that total in excess of $100,000. The total line of credit in the HELOC is only about 26% of a 1999 appraisal on my home. The only active lien on my house is the HELOC. My credit score is near 800.
My guess is that what Chase did is run some software that flagged some accounts, then consulted a bean counter who said that settling the resulting class action would be less than the total default amounts on the HELOCs. So they lumped in the high risk HELOCs with everyone else.
Chase is not WAMU and does not want to live up to WAMU's obligations. I hope this makes a lot of lawyers wealthy-Chase deserves everything they are going to get out of this which is pissed off good customers, a lawsuit and a poor public relations image. Hello Jim Hightower. BTW-there is a lawsuit against Chase from what is left of WAMU for getting a sweetheart deal from the Federal Government when Chase bought WAMU for a pittance. The whole thing stinks of corruption and malfeasance.
Jeff Russell


Posts: 1
Mwalsh, I Love your Spunk! Just got a call from Chase Executive Resolution Group today. I also have a HELOC and several Mortgages with Chase. I complained to my US Senator concerning several issues and I know my complaint got sent to the OCC, so it's a coin toss, HELOC deval or other complaint. Problem is my HELOC is max'ed. Hmmmm. But it great to at least try and fight back then just take what Customer Service offers as "CHASE POLICY". GOOD JOB!;)

Mwaslh - my story is pretty much a mirror of yours. Friday I received notification 9 days after they cut my HELOC from $87,000 to $27,500.
:arrow: They are telling us the value of our home has dropped over $100,000 in the past year.
:arrow: They list balance due on the primary mortgage as the exact same amount when we took out the HELOC 14 months ago (did they think we were not making any payments?). In reality we've been pre-paying the primary and it's over $15,000 lower than they show.
:arrow: The town we live in just sent us our re-assesement on property taxes, raising the evaluation substantially based on the almost $80,000 in renovations we've just completed. The bulk of that was paid in cash. Only $26,000 on the HELOC.

In speaking with their loan department they have admitted that if they had the correct information on the balance due on the primary mortgage they would not have dropped the HELOC amount. I was told to fax over proof of the primary mortgage balance due and they would reinstate the HELOC in 5 - 15 days. Now it's a waiting game. I escalated this to the Chase Executive office and got pretty much the same run-around. They would send an e-mail to the loan executive offices and I would hear from them within 10 days.

Their actions hung me out to dry with my contractor to whom I'd written a check for some additional exterior work he'd just completed. Fortunately he's a friend and is understanding of the situation while I get this straightened out. In trying to come to a quick solution to cover his check I got nothing but inexcusably lame responses from Chase. With a difference of only $1750 between my remaining HELOC available balance and the amount I owed my contractor, I requested a small bump in the limit given the information I'd faxed over. Was told they had no ability to do that so I asked if I transferred that amount from my Chase checking to my HELOC as a payment would it immediately increase my available balance so the check would clear. I was astounded when they told me the could not guarantee that and that they may put a hold on those funds for UP TO 12 DAYS!!! Cash from their bank to their HELOC and they hold the funds! They basically told me to pull the remaining money from my HELOC and write him another check from my personal account. Not a good solution considering it was a weekend and I couldn't reach him to find out if he had already deposited the check.

Only phrase most of the "customer service" reps know are: "I''m very sorry", "I can't gurantee that", and "you have to understand that they are VERY busy". That last one really angered me. I reminded the CS rep of the bailout money, high unemployment and suggested in no uncertain terms that they go out and stimulate the economy by hiring some people to do the job that they clearly were unable to handle with their current staff.

At this point I just want to get at least a portion of the HELOC reinstated ASAP to finish up a few final loose ends on the renovations. I will then be taking steps to close Chase accounts and take my banking elsewhere. Like you, we have high credit scores, no debt beyond the mortgage, HELOC and regular monthy bills, and we have secure jobs with good income. Chase clearly does not want the good customers that are responsible in paying their bills. It's time to look elsewhere.

Thanks for your detailed postings - it helps to know I'm not alone in this travesty of abuse. I will post updates on my situation with them and may be interested in joining the class action suit as well.

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