Trouble With Loan Officer

[Seanscott]

What is the name of your state? Indiana

At the end of July, I called a few area banks to find the best rate to borrow against my house.

I found a bank that had a special of 4.25% with the bank paying all fees. The loan officer ran a credit check on me while I waited on the phone, and was quickly approved. I agreed to accept the loan. She said she would send me an application with the appropriate figures we discussed.

When I got the application, the rate was for 5.99%, the term was for 10 years instead of 5, and the fees were to be paid by me.

I threw the application in the trash, and decided I wouldn't do business with this sloppy outfit.

Now the bank is sending me bills for the fees & expenses they incurred since I "withdrew" from the loan.

They have no signed application from me, and no authorization other than our phone call.

Am I obligated to pay them anything, or should I just ignore them? I suspect the loan officer is trying to cover her @ss after processing a loan without an application.

Thank you for your time.

 

[HomeGuru]

What is the name of your state? Indiana

At the end of July, I called a few area banks to find the best rate to borrow against my house.

I found a bank that had a special of 4.25% with the bank paying all fees. The loan officer ran a credit check on me while I waited on the phone, and was quickly approved. I agreed to accept the loan. She said she would send me an application with the appropriate figures we discussed.

When I got the application, the rate was for 5.99%, the term was for 10 years instead of 5, and the fees were to be paid by me.

I threw the application in the trash, and decided I wouldn't do business with this sloppy outfit.

Now the bank is sending me bills for the fees & expenses they incurred since I "withdrew" from the loan.

They have no signed application from me, and no authorization other than our phone call.

Am I obligated to pay them anything, or should I just ignore them? I suspect the loan officer is trying to cover her @ss after processing a loan without an application.

Thank you for your time.

**A: did you sign anything at all?

 

[nextwife]

FYI- As you shop loans in the future, be certain to ask the LO to verify if the rate they are quoting you is the APR or just the payment rate. Some lenders play a bit fast and loose with letting you presume that a rate being discussed is the APR, when it's not. And get the rate and fees in writing (including that X rate is the APR (annual Percentage Rate) which is the real cost of the loan.

And what fees are they talking here? Credit report only, they never processed the loan or sent out income verifications if you never signed a loan app.

 

[Seanscott]

They claim they did an appraisal and also processed the loan - A $10,000 loan against a $120,000 property with no mortgage or liens on it. It was a drive-by appraisal, if anything.

I never signed anything. I never went to their bank, and had no contact other than the one phone call.

Thank you nextwife for the good advice about the APR!

 

[HomeGuru]

Send the bank a certified rrr letter along with a copy of their last bill stating that you are not paying the bill and the reasons.

 

[advicesucks]

they can try to collect these "alleged" costs but you can dispute them. Send the dispute letter and dont worry about it further if/until it gets sent to a collection agency. Then follow the steps to dispute a collection as outline in other forums here or on creditinfocenter.com

 

[HomeGuru]

Also request a letter from then confirming that the matter has been resolved.