Bank of America Froze our Equity Line Today

[Native]

No notice, nothing. It is tied to our checking acct. (overdraft). Went to withdraw some cash & couldn't do it even tho there was credit available. Have been a customer for over 20 years - excellent credit, etc... Have been using the equity line to run our business - so it has had extreme fluctuations. The local branch didn't even know what was up - they had to call the mortgage dept. Was told that all equity accounts were being reviewed & letters have been going out to customers. Interesting that the local branches didn't have a clue. We have yet to receive a letter/notice and have no idea how checks that haven't cleared are going to be handled. What a mess.

[Sarah Ibarruri]

1. Oh God that's scary nt

[peace13]

2. I am so sorry to hear that.

These are tough times with a small business. I hope your branch will be able to help you. peace, Kim

[Native]

3. Thanks. We'll get by....I just can't believe they're

doing this to people without any notice whatsoever. I'd read about WM & Wells Fargo & Countryside, & JP Morgan Chase, but BofA? Jeez!

[NMDemDist2]

4. B of A now too eh? the last of the biggys now

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=114x34047

it sucks they didn't give you any notice so you could make arrangements. hopefully they will reverse any charges for bounced checks

[DJ13]

5. Sorry to hear that

My family has had the same BofA checking account since 1947, and in the last few years weve found their service unacceptable, their interest rates higher than the norm, and their fees far higher than what most other banks charge.

We stopped banking there, but we left the checking account 2 years ago with $8.30 in it, and they've had to send us a paper statement every month since.

(Payback is a b*tch!)

If you have good credit, try shopping around with a local bank or credit union, they'll probably not only fall all over themselves treating you right, you'll likely save hundreds (if not thousands) of dollars.

[troubleinwinter]

9. No. Credit doesn't matter now. Banks are locking these because home values are sunk.

Specific bank does not matter. Equity lines are being locked all over the place.

[dugggy]

12. I get Free checking and Free checks at BoA

plus excellent internet access to my account. I pay all my bills
electronically through this account. That saves me $4 in postage every
month or $48 every year. My local branch has newspapers, magazines and coffee,
all free. Best part is the very friendly staff there.

Couple of times my checks bounced and would you believe they reversed the
charges each time upon my request!

I give BoA A+ grade.

[Native]

13. That's the way it used to be here in Florida...

but just in the past few weeks things have changed dramatically. The bank actually screwed up on one of our credit card accounts (admitted it was their fault) and refused to reverse a late pay't fee. They were actually quite obnoxious about it too. Prior to this they would basically drool all over the phone every time we had a conversation and thank us profusely for being a customer. Our internet account access has also been screwed up off and on over the past several weeks. One day I spent over two hours on the phone with technical support - they couldn't figure out why my screen was completely different from what was showing up on their end. They eventually just gave up. Never had that happen before!

[aquart]

6. Tell your congressman! And all your state representatives!

Let them know what's been happening to their voting constituents.

[enid602]

7. not yet

They haven't pulled my equity line yet, although I hope I'd never have to use it.

[bigbrother05]

8. Teel them that you will not be responsible for

any overdraft charges, or late fee charges. They want people to have to live on their credit cards.

[Warpy]

10. That might protect you in the long run

and save your house. All lenders are starting to cancel equity lines, preventing people who still have paper equity from borrowing against it while house prices are dropping. They will eventually review your situation as they do a case by case analysis. Since you are using it for a business, something in which you also have equity, you stand a chance of having yours restored but reduced.

It will take some time, that's all. This is the first step they're taking to prevent foreclosures. Too many people have been using those equity lines to overimprove their houses, pay off credit cards so they can charge them back up, etc. Sadly, some people have had to use them to pay medical bills.

[ribrepin]

11. Something is going on with Bank of America

On Wednesday, I'm sitting in my cubicle @ work with lots of co-workers around to hear every word. I receive a call from some guy @ Bank of America looking to "collect on my debt(his words)" for a car loan that we have not missed a payment on for three years. The guy acted like he had a skip/trace on the line. Really pretty rude. I mailed the payment on the day it was due, so the payment was THREE days late.

I thought it was overkill to call someone @ work for a payment that was three days overdue. The guy acted like I hadn't paid my bill in three months. I'm thinking of having the loan transferred to my local Credit Union, but Bank of America will probably charge me a penalty. I called and complained to their customer service line and they've taken my work number off as a contact. The lady I talked to apolized for the Debt Collection guy.x(

[Celebration]

14. I think you are right

Something *is* going on there. They just laid off a ton of people, and present employees are very unhappy, because bonuses that were promised to them in employment contracts are not being paid. They are risking lawsuits galore.

But remember--our banking system has negative bank reserves. They have no money to loan, so they are not just tightening their belts, they are on a starvation diet.

Good grief-- they aren't even going into the auction markets for securities. We are in deep doo doo.

[truedelphi]

16. Good for You.

[truedelphi]

15. Have you heard that Bank America is one of the banks that has

Decided that it can use the provision of "changing interest rates when necessary" to change interest rates on credit card holders - even those who are perfectly in line with being good creditors?

Anyway sorry that their suck-y policies are affecting you.

[question everything]

17. This is why we use different banks for regular checking accounts

and where our wages are being directly deposited, for mortgage and for equity line of credit.

Perhaps we are paranoid, or had lost too many jobs but I just don't want one bank to notice that, oh, these direct deposits stopped so let's tighten the screws.

[ccrickett]

18. Fees

I am so sorry to hear your problem. I have a different problem, for the past 6 years, when my ex payes the Equityline late (35-120 days late), B of A never charges a late fee or raises the interest rate. I don't think its fair that some people get charged fees and higher interest rate and they don't do that to my ex. If you email me I will give you the acct number, because if they don't charge him for being late why should they charge you. My email address is [e-mail]