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Bank misquoted Home Equity Payoff/may lose out on mortgage for new home!

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jalisab

Junior Member
What is the name of your state (only U.S. law)? New York
We applied for a mortgage loan with our local HSBC bank recently. We had a credit score of 760 as of this past February but when the banker ran a report for this mortgage application, we found out it had dropped 100 points which we learned was from a negligent error on the part of Citizens Bank. Basically, we were misquoted (by $10!) the payoff of our home equity line through Citizens Bank when my husband went to the bank to pay it off 2 mos. ago so it came up 2 mos. delinquent on our credit report, therefore dropping 100 points. This has completely disrupted the entire process of our mortgage, to the point of possibly not being able to obtain one in time for our mortgage committment date, which has already been adjusted once due to this.
Can Citizens Bank be held responsible for any of this legally if either we have to pay more towards our closing costs or if we lose this deal completely?? We have a notarized letter from them accepting responsibility and they have told us they're working on it, but in the meantime the clock is ticking and we could lose this deal completely, not to mention what our credit score will end up at.
Please help. Thank you.What is the name of your state (only U.S. law)?
 


cosine

Senior Member
Have you provided the notarized letter to your loan broker at HSBC? If so, what did he/she say about expediting past that?

One step might be to dispute the trade line on the credit report through the credit reporting agency ... after arranging with CB for them to not confirm the tradeline when the confirmation request comes in from the CRA. That might get it off faster than having CB pulling the TL. Have you actually paid CB the difference, too, just to be sure?

This is one of the many reasons (and oh my, there are a LOT of them) that people should always be checking their own credit report info regularly, at least yearly, if not more often (it doesn't cost that much to pull quarterly from all 3 CRA for the 3 quarters not covered by the free annual report).
 

tranquility

Senior Member
While "false" things *may* be actionable, the current law is in favor of the credit reporters. (Go figure. It's almost like they have advocates which give campaign contributions or something.)

Yes, you were hurt. Yes, it was from the error of another. Yet, you might as well get over it as the courts will not care.

America, what a country.
 

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