Purchased mobile home from Clayton Homes in Feb. 1999. Adjustable-rate loan (means loan is recalculated each year and interest rate can go up or down). Became suspicious of Vanderbilt because of other problems. January thoroughly read contract.
According to contract, interst rate determined each year by adding a fixed amount (margin) to movements in the monthly average yeild of US Treasuries securities adjusted to a constant maturity of 5-years as published by Federal Reserve Board.
I then went to the website of the Federal Reserve Board and was able to view Historical Data. This data gave the monthly average yield on 5 year Treasury Securities dating from around 1963 until present time.
I was shocked but not suprised to discover that for the years of and 2002 the rates provided to me by Vanderbilt were nowhere within this data. For each of the three years the rates provided by Vanderbilt were higher than the rates published by the FRB.
I sent a letter to Vanderbilt inquiring as to the discrepancy. The immediately acknowledged receipt of the letter but would have to send my complaint to research and call me back.
This occurred mid- Feb. I had to withhold payment for April to actually have someone address my complaint.
Initially they insisted I had view the wrong information from the Federal Reserve Board. However, I was persistant. If I were in fact looking at the wrong info then I asked could they direct me to the right info.
They eventually conceeded that my account had been place in the wrong category, which caused the wrong rates to be applied. They said they would fix the problem and my rate was adjusted accordingly.
However this year one month prior to the renewal the raised it back to the amount it had been before my complaint so this year even though they are using the right index rate my interest is still higher than it should be because they won't readjust the cap.
Now they simply are not willing to discus it any further.
I feel their actions were intentional. I believe every adjustable rate loan they have is probably experiencing the same fraud I was and still am.
I really wish some Federal Agency would investigate them to determine if I am right.
I would suggest that anyone with an account with Vanderbilt look into this because with a large balance it doesnt take long for the money to really add up.
Vanderbilt Mortgage and Finance is a branch of Clayton Homes. They do all in-house financing for Clayton Homes. I also believe they may have purchased some contracts from Oakwood Homes.
I will mail a letter to Vanderbilt tomorrow demanding that this complaint as well as the others be submitted for Binding Arbitration as provided for within the contract.
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