When my dad died, my mom wanted to downsize and found a nice ranch before her present home sold. So we went to Charter One for a bridge loan. The loan officer, Jeff, told us the rate would be 6.8%. When we went in to sign the papers, the rate moved up to 7.1% but we went ahead anyway. He told us when the collateral house sells, add a large payment to the proceeds and get the balance of the loan down as far as possible. The pre-payment fee of 2% will then be calculated on a very small balance. We did that.
When I called November 18 to ask for a payoff figure so we could make the final payment on the loan, they wanted to charge 2% pre-payment penalty on the FULL AMOUNT BORROWED! I can't tell you how many phone calls I made and how long I sat on hold listening to recordings and pushing buttons. I drove 72 miles to visit the branch office the loan originated from and could get no help. Jeff wasn't in and the assistant manager only faced what I had been facing of 800 numbers that no one answered but machines and recordings.
I finally got ahold of customer service and asked for the supervisor of the one who answered the phone. Finally, they checked the calculations and admitted they had made a mistake in calculating the pre-penalty payment off the full amount. But they would not give us credit for the payment we added to the proceeds of the sale of the first house. They said Jeff was incorrect to advise us that way and a lawyer would prove the paperwork we signed was to the contrary. So now we have the company not standing behind the word the loan officer gave us and they are making it my problem to sort out the difference or hire an attorney. They also tacked on a $300 "modification fee" that could not be removed by their department.
I lost track of the phone calls I made and the time I spent on the phone trying to get someone to simply give me a payoff figure that was accurate. Finally, on December 12, they came back with a figure that was correct.
There would not be 1 in 100 people who would have had the time or ability to be as persistent and determine as I was to make them keep their word. So how many people are they intimidating into paying loan balances they do not actually owe? What does a person do who is elderly or doesn't know who to call, or doesn't have the kind of job where they can wait on hold for 20 minutes at a time? This was an unbelievable ordeal full of stress and frustration just simply trying to get Charter One to follow through on their promise. I am making a long story short, but I think you get the idea.
Ironically, their recording came on during one of my seasons on hold bragging about their "hassle free loans" and their "free money" that's available. This was an aweful experience I hope I can save others from having.
Donna
Middleburg Heights, OH
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