I believe I feel I got caught up in a "Bait and Switch" Scam

[DustyBoot]

What is the name of your state? FLORIDA

My wife and I were looking to refinance our mortgage. Currently we have 2 mortgages and wanted to combine them to reduce our monthly payments, in addition, my objective was to get it done at a lower rate of interest. Well after many calls from brokers and dealing with many sales pitches, we were eventually contacted by a well known lending agency. Overall, my mentality was that I would take control and make the them meet my criteria for the loan if they wanted me to do business and lend me money. In the past I always allowed others to tell me how it was and almost always ended up in a pickle, but as I matured I relized I can set my own rules, because afterall, its my signature on the paperwork that matters.

Overall, the person was very friendly and based on the information we provided, she said that we qualified for a 6.5% refinance. However, the kicker was that I had to pay them $175 to lock the percentage rate at 6.5%. No other information was given about the money we were paying them, except that it was only to lock the rate and that we would get the money back at closing.

Honestly, I've always been weird about givening money upfront like this, but there were only 2 reasons I ended up doing as she asked. First, 6.5% was the best offer we had been given and second, she sort of did a rush job on me, in that she stated the markets were about to open and the interest rate was increasing. Well, that sort of pushed me into a panic mode. Overall, with this part complete, my wife and I waited on the paperwork. It finally came and I carefully reviewed it to look for problems. Everything fit in line with what they originally offered. Unfortunately, there was one document about the $175 that said it was for a processing fee and that it was non-refundable. This was the only document I found to be questionable, but with the facts given by the lady I originally spoke to and that the fact that the application met the payments and percentage rate we were offered, I felt it was safe to sign that particular document as we would get it back as offered during the closing as the lady had stated. Well call be a dummy, I signed all the paper work and mailed it back.

A week later, after not hearing a word, and 3 days before they set the closing, the company calls and says we didn't qualify for the loan and were denied. However, they stated they just had to offer us this second great program since the other was declined. This wasn't what I paid them the $175 for I replied. The percentage rate was much higher and the payments and fees made this very unappealing. They continued to pound away and pressure my wife and I into accepting the deal and I got angry and said that this was not what I was offered and the only reason I was dealing with them was to have the fixed 6.5%. I told them I don't do business with people that mislead, bait and switch me like this and I wanted my $175 back. The first thing they said was that it was non-refundable and that I signed that document agreeing to it.

More or less, I went through several people at that company explaining that I was mislead from day one and that I felt they baited me with one deal and made an excuse to decline us and switch us to a deal more favorable to themselves. I told them the $175 was for the fixed rate as dicussed initially and based on how they lead us through the process they mislead us to sign that document. Basically, I just want my $175 back. Overall, I could just say, its only $175 and chalk it up as a lesson learned, but by principle we were done wrong and I feel I should fight it somehow. However, although they mislead us and lied to us, the law appears to be on their side legally as it all goes back to that non-refundable document I signed. Overall, It was implied to me by these people, that they could say anything and promise everything but it doesn't mean a thing, because the document tells the truth based on the fact that I signed it as an agreement.

Anyone have any idea what I can do legally to fight this? I really feel that someone needs to know that this company is doing this sort of thing. Unfortunately, I have no idea if this has occured to other people or if this is a normal scam used against people like us. I just know I'm out of $175, and I guess I should be blessed that they didn't get anything else.

Any government agencies I can talk to about this? Unfortunately, this company is not in my state of residence. Any suggestions?

[acmb05]

Originally Posted by DustyBoot

What is the name of your state? FLORIDA

My wife and I were looking to refinance our mortgage. Currently we have 2 mortgages and wanted to combine them to reduce our monthly payments, in addition, my objective was to get it done at a lower rate of interest. Well after many calls from brokers and dealing with many sales pitches, we were eventually contacted by a well known lending agency. Overall, my mentality was that I would take control and make the them meet my criteria for the loan if they wanted me to do business and lend me money. In the past I always allowed others to tell me how it was and almost always ended up in a pickle, but as I matured I relized I can set my own rules, because afterall, its my signature on the paperwork that matters.

Overall, the person was very friendly and based on the information we provided, she said that we qualified for a 6.5% refinance. However, the kicker was that I had to pay them $175 to lock the percentage rate at 6.5%. No other information was given about the money we were paying them, except that it was only to lock the rate and that we would get the money back at closing.

Honestly, I've always been weird about givening money upfront like this, but there were only 2 reasons I ended up doing as she asked. First, 6.5% was the best offer we had been given and second, she sort of did a rush job on me, in that she stated the markets were about to open and the interest rate was increasing. Well, that sort of pushed me into a panic mode. Overall, with this part complete, my wife and I waited on the paperwork. It finally came and I carefully reviewed it to look for problems. Everything fit in line with what they originally offered. Unfortunately, there was one document about the $175 that said it was for a processing fee and that it was non-refundable. This was the only document I found to be questionable, but with the facts given by the lady I originally spoke to and that the fact that the application met the payments and percentage rate we were offered, I felt it was safe to sign that particular document as we would get it back as offered during the closing as the lady had stated. Well call be a dummy, I signed all the paper work and mailed it back.

A week later, after not hearing a word, and 3 days before they set the closing, the company calls and says we didn't qualify for the loan and were denied. However, they stated they just had to offer us this second great program since the other was declined. This wasn't what I paid them the $175 for I replied. The percentage rate was much higher and the payments and fees made this very unappealing. They continued to pound away and pressure my wife and I into accepting the deal and I got angry and said that this was not what I was offered and the only reason I was dealing with them was to have the fixed 6.5%. I told them I don't do business with people that mislead, bait and switch me like this and I wanted my $175 back. The first thing they said was that it was non-refundable and that I signed that document agreeing to it.

More or less, I went through several people at that company explaining that I was mislead from day one and that I felt they baited me with one deal and made an excuse to decline us and switch us to a deal more favorable to themselves. I told them the $175 was for the fixed rate as dicussed initially and based on how they lead us through the process they mislead us to sign that document. Basically, I just want my $175 back. Overall, I could just say, its only $175 and chalk it up as a lesson learned, but by principle we were done wrong and I feel I should fight it somehow. However, although they mislead us and lied to us, the law appears to be on their side legally as it all goes back to that non-refundable document I signed. Overall, It was implied to me by these people, that they could say anything and promise everything but it doesn't mean a thing, because the document tells the truth based on the fact that I signed it as an agreement.

Anyone have any idea what I can do legally to fight this? I really feel that someone needs to know that this company is doing this sort of thing. Unfortunately, I have no idea if this has occured to other people or if this is a normal scam used against people like us. I just know I'm out of $175, and I guess I should be blessed that they didn't get anything else.

Any government agencies I can talk to about this? Unfortunately, this company is not in my state of residence. Any suggestions?

Yes you are blessed that they did not get more from you. Verbal agreements mean almost nothing especially after you sign a paper saying it is non refundable.

You could go to ripoffreport.com and post a complaint there or ven check them out and see if they have complaints against them now.

[moburkes]

They locked in the rate, but if you don't qualify for the program, then you just don't qualify. What was the reason given for the denial?

It is assumed that a written agreement "replaces" the oral agreement, otherwise you would not have assigned that written agreement.

[lcannister]

Overall, my mentality was that I would take control and make the them meet my criteria for the loan if they wanted me to do business and lend me money. In the past I always allowed others to tell me how it was and almost always ended up in a pickle, but as I matured I relized I can set my own rules,

And when one thinks they have reached this level of "maturity" one has also reached the level of doing research on the language of the biz, contracts, and pressure tactics. You have not reached that level yet.