A few weeks ago I almost became a financial disaster as I put my faith on a bank that has had my credit card business for seven years. We never missed any payments and many times paid more than the minimum required. Between two cards that we held for our business they recruited us with glad handing us as such good customers that they found they could give us a generous line of credit for our brick and mortar business. It was like manna from heaven and would give us the opportunity to not have to struggle if we wanted to buy new equipment, pay for a strong public relations program and increase our business by establishing online stores to sell products related to our business.
The economy went into recession and banks were scrambling for whatever they scramble for and received millions and billions of dollars from our government to bail themselves out. Besides their bailout money they have turned to their customers to help bail them out even more. This bank gave us a whopping $40,000.00 line of credit and with one letter in the mail they wiped the slate clean by disbanding their credit card division, increased interest rates and claim they do not have any authority to negotiate any new terms or interest rates. This a fairly large bank in the northeastern part of our great country and you know that there will be many people facing the same thing. If this happens to you consult a reputable debt resolution service to help you out and their fees are fair.
Any bank customer that has an equity loan on your home, business or assets, beware, as you will find your self with out a credit line. We have been customers of this bank for 30 years, stayed with them through many mergers and even through the last one where they were merged into another larger bank through government negotiations with bailout funds. Banks do not know what customer loyalty is on their part and here is what happens and has happened to us many loyal customers to this bank that have equity loans. Banks crunch numbers through an electronic program that develops for them, your market or loan value to arrive at you loan equity.
This program is very arbitrary and no consideration of you as a customer. At the time of our loan application our loan value was set at the mid $200 to $300k level. This gave us a credit line of $105k plus. We used some of the line to purchase our brick and mortar business, made all our payments on time and the loan was about 5 years old. We had an open line of over half of the $110k. Again, without any notice or warning that letter comes and states that the bank has re-valued your property and your equity line is now $3,000.00 instead of $55,000.00. The bank states, "If you want to question our numbers please complete this form and we will be charged $200.00-$700.00 for the bank to take a second look." This decision is so arbitrary and does not give any consideration to the county appraisal which is almost $40,000.00 higher than their computerized program.
So here we are, at the whim of a couple banks and two letters we lost a line of credit of about $90,000.00. Now add up the thousand of customers these two banks did the same thing to and you know why the small business person finds it hard to survive. Our business has supported 6 families for 7 years. If this happens to you please write to your congressman as they need to know what goes on behind the scenes, not just the billions they have loaned these banks.
Dean Greenstreet - Pen Name John Patters
http://www.internetbiznovice.com
This site develops an opportunity to start your own on line business.
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