R
RBecker
Guest
Would the following constitute a violation of the Truth In Lending Act?
Sept. 27, 2001
I would like to bring to someone's attention that a lender may be using bait-and-switch tactics in order to avoid offering rates that coincide with the new low prime designed to stimulate economic recovery in the United States. Consumers need to be warned.
I recently discovered this practice when Irwin Home Equity a.k.a. PremierEquity sent me a “final numbers” e-mail related to my home equity line-of-credit (I applied on July 19 through lendingtree.com) that stated “everything came back the way I ‘originally’ quoted you.” However, when I called the next day, I was informed that they had to change products from the one we had been promised to a different one. The new product interest rate would be 9.75% as opposed to our previously agreed upon rate of 1% over prime.
While the company representative cited that the change in products was related to the fact that our home appraisal came in at 150k, I contested that it could not be a new factor because: it was unlikely this could have had a bearing on the loan within 12 hours; that they had stated a month ago that they had appraised the home at 150k and it was not considered a factor; and that our lender representative had called back to offer me a ‘counter offer’ that included a lower interest rate, but not one that would mirror the original offer. The representative declined to comment. And, after more than one minute of silence, I broke off the conversation by calmly stating it did not appear likely that we could resolve this matter at this time.
You should also know that while I am confident I can secure the loan I am seeking through another lender on my own, I do not want others to fall prey to dishonest lenders when so many people are taking a chance to proceed with their purchases in order to help restore the American economy. If I can provide you any information, please do not hesitate to contact me. My email is [email protected]
Respectfully,
Richard R. Becker
Sept. 27, 2001
I would like to bring to someone's attention that a lender may be using bait-and-switch tactics in order to avoid offering rates that coincide with the new low prime designed to stimulate economic recovery in the United States. Consumers need to be warned.
I recently discovered this practice when Irwin Home Equity a.k.a. PremierEquity sent me a “final numbers” e-mail related to my home equity line-of-credit (I applied on July 19 through lendingtree.com) that stated “everything came back the way I ‘originally’ quoted you.” However, when I called the next day, I was informed that they had to change products from the one we had been promised to a different one. The new product interest rate would be 9.75% as opposed to our previously agreed upon rate of 1% over prime.
While the company representative cited that the change in products was related to the fact that our home appraisal came in at 150k, I contested that it could not be a new factor because: it was unlikely this could have had a bearing on the loan within 12 hours; that they had stated a month ago that they had appraised the home at 150k and it was not considered a factor; and that our lender representative had called back to offer me a ‘counter offer’ that included a lower interest rate, but not one that would mirror the original offer. The representative declined to comment. And, after more than one minute of silence, I broke off the conversation by calmly stating it did not appear likely that we could resolve this matter at this time.
You should also know that while I am confident I can secure the loan I am seeking through another lender on my own, I do not want others to fall prey to dishonest lenders when so many people are taking a chance to proceed with their purchases in order to help restore the American economy. If I can provide you any information, please do not hesitate to contact me. My email is [email protected]
Respectfully,
Richard R. Becker