The Consumer Complaints Blog

Fighting the trained monkey in modern society.

January 9, 2011

CitiMortgage Scam

Filed under: Financial — Editor @ 9:53 pm

I have had a mortgage with CitiMortgage for a number of years and have never missed a monthly payment. I recently decided to pay our mortgage off early. In order to do that I called the “anonymous” 800-number to understand the process of how to do an early payoff. I was told that I needed to request a payoff statement and it could be faxed to me (and that a fee for the fax MAY apply). I provided my fax number. Before long, I received a 2-page fax with the payoff information.

I was utterly in a state of shock to see that a $25 “fax fee” had been added to my basic payoff amount.

Assessing a $25 “fax fee” for a measly 2-page fax is unconscionable. What a rip-off!! I would think CitiMortgage might want to reward responsible people like me who never miss a payment and payoff loans early. Instead, it chooses to penalize such responsible behavior.

These are the type of silly and unjustified “financial fees” that gives the financial industry a well-deserved reputation as corrupt and without ethics. Shame on you, CitiMortgage!!! If I ever need another mortgage, it will not be through you.

This article was submitted by one of our readers. Penciltrick cannot make any claims as to its authenticity but the article was accepted on a good faith belief that it is an accurate and truthful account of the events listed.

2 Responses to “CitiMortgage Scam”

  1. HJ Says:

    Well, here is another sneaky bank attempting to rip off current customers. SunTrust.

    It is no secret that banks are not doing so well. SunTrust Bank executives have apparently decided on a way to pull in some extra bucks. Unfortunately, they have resorted to sneaky and illegal tactics to do so. Current customers all over the country, who signed up with SunTrust Bank under a “free checking account”, are getting emails or letters stating that the company has decided to change all free checking accounts to “pay accounts”.

    Funny, upon searching my terms and agreements, paperwork, and the like, I could not locate any terms that gives SunTrust the right to change my agreed upon service (my free checking account) to a pay account whenever they want. When I called I was told that “due to industry changes all free checking accounts would be converted…sorry”. Being a law student, I explained that I did not consent to this change and nowhere in my agreements/terms/or disclosures is it stated that SunTrust has the right to do this. In fact, my terms state that the only change allowed is a conversion from a “student checking account” to a “free checking account” upon graduation. This is the agreement I signed. Changing terms after the contract is formed is illegal. I was transferred to a supervisor who told me that the bank reserves the right to change my account anytime. I ask her where that reservation was located. She put me on hold to “find it”. After 20 minutes she came back on and said she would have to find out from someone where that legal disclosure was. I explained that if it wasn’t accessible to their customers and it wasn’t disclosed at the time of contracting the “free checking account” than it isn’t valid. I further stated that nowhere in my paperwork is an additional legal document even referenced. If the management can’t even find the disclosure that states “we reserve the right to alter your account” (i.e. change your contract) then how do they expect their current customers to know about it at the time they signed up for an account.

    So, I understand that banks are hurting. They over extended themselves when loaning money to unqualified candidates and now they are attempting to stay afloat. But instead of scamming current customers who deposit their hard earned cash and place it trustingly into their hands why don’t the executives consider cutting their own bonuses or selling a few of their Hampton estates.

    If you currently have a free checking account with SunTrust, watch out. As of November you will notice monthly charges going to SunTrust. You will also be charged every time you use your check card. If you signed up for a free checking account and did not agree to any such change than file a complaint with the Federal Reserve (click on the link bellow)…. that is, right before you find a new bank . . . a bank with some character and honesty.

  2. Leslie styles Says:

    I was recently called regarding a missed payment of $160. for a tv purchased about a year ago. It was simply an oversight — i have lots of funds available to make the payment. Sear’s financial people, Chase, were on my case right away and asked to speak to my husband. When i told them he was recently deceased, Chase proceeded to treat me as if i had used this credit card fraudulently (even though it has my own name on it) and made me feel that since my husband was no longer alive, i had no right to continue using my Sears account. Chase advised me that my account was to be closed immediately. it was all handled so incredibly rudely and insensitively and for this reason I will never set foot inside another Sears store as long as I live. Chase did not even bother to identify themselves when they first called and just kept brutally asking information about my husband;s death and demanding a death certificate. Well, i dont think i am going to send it to them and i certainly dont feel like paying anything else towards an account that i have no right to use.

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