HELOC Suspended Without Cause?

Home Equity and Commercial Lines of Credit

If you have a home equity loan or commercial line of credit, and the bank changed the terms of your loan or suspended your line of credit, you may have legal recourse to seek financial compensation. Allegedly, certain banks and mortgage companies have been unilaterally changing the terms of their home equity loans and commercial lines of credit without reasonable basis for doing so.

If your bank or mortgage company demanded proof of your financial situation to maintain your home equity line of credit (HELOC) or commercial line of credit, you may be able to file a claim seeking financial compensation. To find out if you are eligible, complete the free case review form today with the details of your situation.

Violations of the Truth in Lending Act

It has been alleged that certain banking institutions have been violating the Truth in Lending Act and other statutory and common laws when they alter the terms of their home equity loans and commercial lines of credit. Allegedly, the banks are improperly claiming that the borrower had a “materially adverse change in financial situation” and/or demanding that the borrower provide proof of their financial situation or else the Home Equity Line of Credit will be revoked.  In many cases, even upon presentation of the requested documentation, the banks and mortgage companies may have suspended or revoked the credit lines improperly. It is believed that these actions are being taken in an attempt to enhance the banks’ financial condition and appear “healthier” to federal regulators.

Banks Under Investigation

SunTrust and JPMorgan Chase have already been hit with lawsuits alleging that the banks unlawfully froze the accounts of unsuspecting borrowers. While the following banks have not been involved in legal action surrounding their home equity loans of commercial lines of credit, it is believed that other lenders may be engaging in practices similar to those alleged in the suits against SunTrust and JPMorgan Chase. We are currently investigating to determine if any of these following establishments have been unfairly changing or suspending their customer’s lines of credit:

• Bank of America
• Wells Fargo
• Citigroup
• PNC
• Citizens Bank
• U.S. Bank
• Regions Financial
• Fifth Third Bank
• TD Bank
• KeyCorp (Key Bank)
• HSBC
• BMO Financial 

This list is not exhaustive, and we are looking to hear from anyone who suspects they have been subjected to an unlawful commerical line of credit or HELOC suspension. If you believe the terms of your loan were changed or your line of credit was suspended without reason, contact us today for more information about your eligibility for legal recourse.