Banks randomly shutting down Equity Lines: homeowners sue
We’ve been hearing about banks shutting down HELOCs (Home Equity Line of Credit) without just cause. But the practice seems to be not so random but purposefully calculated using more computer models rather than actual appraisals to cut off people who are otherwise, not candidates for such measures. But, as described in the article, homeowners who were doing the right things are now suddenly finding themselves being cut off (sound familiar?): i.e. being fraudulently turned off. Just when homeowners who have built up equity and may need to tap in during some financial difficulty, they are being told their lines are suspended for unknown reasons.
These supposed fraudulent practices have occurred so frequently, there is, as described in the article, a class action lawsuit developing in the wings involving the major banks like Wells Fargo, Chase and other banks. Yes, there are people whose lines of credit should be turned off if they are not doing the right thing and trying to play games with the system. But remember, these individuals were are discussing are not that category; these are people who are paying on time and not necessarily over-extending themselves. These are the people who are and have been doing the right things. It seems the little people who have been pushed down and trampled on have had enough and are now willing to fight back for their rights. Good for them!
