I’ve debated whether I should share some of these incredible nightmares with you….but there are just so many of these coming up that I had to report them….If you have a similar story, please send me a note so that I might review and share and maybe even try to help.
Bank Horror Story 1
Last year, I had the pleasure of helping out a young family….. They have 5 kids and were in the wrong mortgage product with a short amortization and the bank had recently given them a consolidation loan to help out… The banker did not do this family any favours…
Their monthly payments were still totaling around $2900/mth….A simple review would have revealed that this family had plenty of equity in their home to leverage…. After all, the cheapest money is mortgage money.
I recommended they roll that loan into the mortgage, break the current mortgage, extend the amortization and the end result would be a much lower and manageable payment with a lower overall interest rate….3.75% vs 4.94% and their monthly payment would be $1600/mth...saving them over $1300/mth.
The bank quoted a $5k penalty.. that’s ok… it was still well worth it… the interest savings would be around $13k over 5 years… but then they charged him over $10k in penalties at closing... well, with the help of Ellen Roseman of the The Star newspaper, he got his $5k back…..
Bank Horror Story 2
Here’s another story with a happy ending that just occurred this year… A single mother with disabled son needed to get their payments lower and pull out some money for a new roof….Her mortgage was coming up for renewal so no concerns with penalties, right? WRONG!!
This Bank ( a Big Six bank) decided to renew the mortgage into a closed 6 month term…even though they had been informed by the client that she was paying them out… and informed by her lawyer that they were paying them out…. WHY? I have no idea….but they ended up charging and collecting a penalty for $1600…
Once again, with the help of Ellen Roseman from The Star, the bank refunded the entire $1600 to that client some 3 months later…. The worst part about this story is that the Branch Manager refused to return any calls to the client or her lawyer….. Quite Pathetic.
The Big Banks are reporting $Billion quarterly profits
Have you read some of the financial reports from the Big Banks? Do you know where they are making most of their money? From Domestic Banking… The above stories are just 2 examples where clients are being gouged and ripped off….how many more of these situations exist?