The Assertive Cancer Patient

Did Citibank Cancel Your Loan?

If you have (or HAD) a home equity line of credit with Citibank and it was canceled by the bank, and if you want to fight back, send me an e-mail: jeanne.sather@gmail.com In the past few days I've talked with some journalists who want to do a story about this, and also with a lawyer who is interested in a class-action lawsuit against Citibank. In the e-mail, please tell me what city and state you live in, and give me your phone number. I'll pass your contact info on. If you've already e-mailed me about this, expect to hear from me some time today or tomorrow.

@ Jeanne Sather 2009.

CITIBANK: Reinstated, Once Again

On November 3, Citibank canceled (they call it "suspended") my home equity line of credit, which I rely on for about half of my living expenses every month. 

On November 15, right before I left town for The Great Road Trip, I sent Citibank a letter, challenging the suspension, complete with documentation, and beginning with this line: 

"Before taking legal action, I decided to write to you."

Today I called to check on the status of my loan, and was told that it had been reinstated. 

Whew. The funny thing is that this is the second time Citibank has canceled my loan this year, and the second time they have reinstated it. So my first action is going to be to write myself a check for the remaining balance on the line of credit to stash away in MY bank account. 

I don't need this stress. 

No matter how good I am at stress management, and, after 10 years of living with cancer, I'm pretty good, there is no denying that I was incredibly stressed and anxious about this for the past month. That stress affects my health, both physical and mental, and it's exhausting. 

But does Citibank care about that? I don't think so. 

To those of you who were hoping that I would organize a class-action suit against Citibank, I have to say sorry, but I won't be. Because I no longer have a cause for action--my loan has been reinstated. 

A couple of things you might consider doing: 

** Send Citibank a strong letter. I'm happy to send you mine to adapt to your situation. It's a pretty good letter. 

** I don't know why Citibank reinstated my loan, but I suspect it has something to do with the fact that the "debt" (I didn't owe it, it was a mistake by my cancer center) that I was sent to collections for was medical debt. I'm not sure, but that's my suspicion, so if you can get the terms "medical debt" into your letter somehow, that might help.

** If you would like me to edit your letter before you send it off, I'd be happy to do that. Shoot me an e-mail: jeanne.sather@gmail.com

Remember, Citibank is breaking the law here. The only reason they can cancel a home equity line of credit is if you don't make your monthly payments. Oh, or if you lied in your original loan documents, which would be fraud. 

Read the whole sad story of my battles with Citibank, oldest posts are at the bottom: Citibank

@ Jeanne Sather 2008. 

Those Evil Folks at Citibank Do It AGAIN

I received a form letter from Citibank, my mortgage holder, today, telling me that the bank is canceling my home equity line of credit (HELOC), for the second time.

My HELOC was canceled by Citibank for the first time last May. I fought back, and the HELOC was reinstated, although the bank never bothered to send me a letter telling me so. I found out when I called to ask when they would reply to my letter.

The woman I spoke to on the phone told me it had been reinstated, and said I should have received a letter confirming that. Well, I never did get the letter, but that doesn't surprise me, considering all the e-mails I've gotten from others who had their HELOCs canceled by Citibank without notice. One woman said that she only found out when a check she wrote against her HELOC bounced! 

I plan to fight back with the same strategy I used last time--First, a strong letter, pointing out that I have not "experienced a material adverse change in [my] financial circumstances." Believe it or not, I'm in better financial shape now than I was at the time Citibank made me the original loan--at that time, I was teetering on the edge of bankruptcy. 

I also plan to consult with Steve Berman, class-action attorney extraordinaire, to see if he is willing to sue Citibank for me and others who have lost their loans. 

Stay tuned. If you want to be part of this lawsuit, send me an e-mail: jeanne.sather@gmail.com

To read more about my problems with Citibank, click on this link and then scroll down. The oldest posts are at the bottom. Citibank

@ Jeanne Sather 2008. 

 

MOMS ONLINE

Update on Citibank

This is an apology to the folks who wrote to me after having home equity lines of credit cancelled by Citibank or another bank.

When my HELOC was canceled, I planned to bring a class-action suit against Citibank, and I said that on my blog. Then, when my loan was reinstated, I had no grounds to bring the suit, so I never met with the class-action attorney.

I'll try to e-mail the folks who got in touch with me individually, but in case I miss anyone, I wanted to post this update. I think a class-action suit is a good idea, I just won't be the person carrying the flag.

For more, go to this link and scroll down:

Citibank

@ Jeanne Sather 2008.

Want to Sue Citibank?

I have an appointment with a class-action attorney on Thursday to talk about suing Citibank for cancelling my home equity line of credit.

I know I'm not the only person Citibank did this to, and if your home equity line of credit was cancelled by Citibank (or another bank, for that matter), and you would like to join in a class-action suit, or would like more information, send me an e-mail: jeanne.sather@gmail.com

Don't know what I'm talking about? Click on this link Citibank and then scroll down to read my older posts.

@ Jeanne Sather 2008.

Citibank: A Victory Dance!

So, I had all my ducks in a row this morning to call a class action and personal injury attorney I know to see if he would sue Citibank on my behalf.

I left a message at the lawyer's office, and then called Citibank's home equity line of credit dept. to see if they had responded to my letter of May 28, asking that my loan be reinstated.

And ... the person I talked to--Michele, No. 8608644--told me that my loan had been reinstated as of June 6!

Incredible. Of course, Citibank hasn't gotten a letter out to me yet.

So here I am with all this energy, ready to fight, and the fight is over.

I immediately wrote myself a check for $10,000, just in case Citibank changes its mind again.

However, for those of you who have written to tell me that your home equity LOC was cancelled in similar circumstances: I will be talking to the attorney about a class action suit anyway.

Also, send Citibank a letter--it couldn't hurt. I'm happy to help with the drafting of any letters, and one of my readers who just graduated from law school has offered to help with letter-writing too. I may ask her to help me write a generic letter that people can adapt and send.

@ Jeanne Sather 2008.

Wanted: A Lawyer to Sue Citibank

I need a lawyer willing to sue Citibank (or its parent company, Citi, I'm not picky) over the cancellation of my home equity line of credit by the bank.

Don't know what I'm talking about?

Read these two posts, and then send me an e-mail (jeanne.sather@gmail.com) if you are a lawyer licensed to practice in Washington state who is willing to take this on, either pro bono or for a percentage of the settlement.

Blindsided by Citibank

Citibank: Fighting Back

@ Jeanne Sather 2008.

Citibank: Fighting Back

Time to start fighting back against Citibank, which cancelled my home equity line of credit last month.

I sent a letter to Citibank protesting this cancellation, and asking that my home equity line of credit be reinstated.

See: Letter to Citibank

The letter was mailed on May 28, and I asked the Post Office for delivery confirmation. I just checked this on the automated phone system, and my letter was delivered on May 31, at 2:15 p.m.

Today is June 13, not quite two weeks later. How long am I supposed to wait for a reply?

In any case, I won't be sitting back and waiting for Citibank to do the right thing. I know better than that.

I've already made a complaint to the FTC, and received a form letter back. Not expecting much help there, either. Or not timely help.

See: FTC Complaint

I've also sent an e-mail to the lawyer who saved me from bankruptcy several years ago, asking her to write to Citibank on my behalf. Citibank refinanced my mortgage just months after I nearly went bankrupt, at a time that my credit score was in the toilet, and even gave me cash out on the refi.

At that time, Citibank, like other lenders, was EAGER to loan money. Now that the bank is in trouble, it wants to change the rules.

Suggestions From the Cheeky Librarian
In addition to the FTC complaint form, my friend Teri, the Cheeky Librarian, sent me these sources to complain to:

Homepage of the Bureau of Consumer Protection

There are regional offices for the FTC also. And the Office of the Inspector General

They also link nicely back to the House/Senate subcommittees/committees, in case you want to write to someone higher.

If you really want to go higher, here is the e-mail page to Oprah. (Note from Jeanne: Maybe I'll just start there, and skip the rest. Who has more power in this country, Congress or Oprah?)

I don't know if Suze Orman will be of much help.

I (Teri) e-mailed her a couple of times in 2006 after diagnosis, just to ask how does one with cancer "plan for retirement," since all rules appear to be off. I have since figured that I need to pretend that I am 10 years older, and have adjusted my plans accordingly.

From Anna, Our New Lawyer
Anna, a young breast cancer survivor and reader of this blog, has just finished law school (Go, Anna!)

She sent me these suggestions:

To save you some time down the road, you probably want to review your loan agreement (did that) and credit report. If you don't have a copy of the agreement Citibank should provide you with one upon request. Be sure that none of the conditions stated in the agreement that would allow them to cancel have occurred.

Bear in mind that ambiguous contract terms are interpreted against the drafter (Citibank). You may have an error on your credit report or something else that is independent of Citibank that allows them to cancel so you want to rule that out.

Also, it's probably a good idea to compile documentation of your timely payment of the loan as agreed. Copies of the checks or your bank statement showing an automatic payment should suffice.

I would definitely recommend filing a complaint with the consumer protection division of your state's Attorney General's Office.

If you think they are doing this because of your cancer you should also complain to the civil rights
division. The AG won't give individual legal advice, but they have the ability to make things very unpleasant for certain lenders depending on Washington's laws, and the state level enforcement entities tend to be more responsive to individuals than the feds. They can also sue Citibank on behalf of the citizens of the state if they have done this to a significant number of people in Washington. Predatory lending is huge right now so the politics of the issue may help you here.

You can also complain to the feds through the Department Housing and Urban Development (HUD), if you think Citibank may be discriminating against you on the basis of your cancer

Discrimination in mortgage lending on the basis of disability (your cancer should count) is illegal and HUD can investigate. If you have no idea why they cancelled the loan, I would file a HUD complaint if you think this is a possibility.

My theory is generally if you complain to enough regulatory agencies something will stick eventually. But bureaucratic wheels turn slowly so nothing beats suing if you can afford it. Your local legal services office
may offer free representation if you meet their income criteria.

Try calling:
Columbia Legal Services
101 Yesler Way, Suite 300
Seattle, WA 98104
(206) 464-1122

I would also try Appleseed of Washington.

Legal services entities are funded by the federal government and have income guidelines for which clients they can serve. They tend to handle smaller disputes between individuals, i.e., divorces, landlord/tenant, etc., here in Boston, but they take all types of cases and can usually direct you to good resources if they can't help you personally.

For additional free legal services see if any law schools in your area offer clinical programs where
law students participate in individual cases under attorney supervision.

I would also look to see if your local bar association offers a lawyer referral service. They can direct you to lawyers that charge fees in your price range or are willing to take the case as a contingency fee. Try Washington state bar association.

Have you received any response from Citibank regarding your objection to them cancelling the loan? If you want to try writing another letter to them yourself, this area is governed by Regulation Z of the Truth in Lending Act.

Keep in mind that if they illegally cancelled the agreement intentionally then you may have a tort claim.

Based on your first letter, they are on notice of your cancer as the reason you need the money. Usually, in a breach of contract case you are limited to recovery based on the terms of the contract, plus reasonably foreseeable damages that result as a consequence of breach. However, in some cases, particularly where one party is an individual and the other is a huge corporation doing something evil like this, the court may allow a tort claim if the breach was intentional.

Tort = possibility of punitive damages/greater recovery, which can make it easier to find a lawyer to take the case on contingency (for a percentage of any award).

Back to Jeanne: Whew! Thanks, Anna. That's enough to make my head spin. But I'm going to work my way through all of this, as I said. I don't want to lose my house, which is what I'm facing without the $40,000 that was still remaining in my line of credit when it was cancelled.

In addition to all of the above, which I will be working my way through this afternoon, I will be advertising for a lawyer willing to sue Citibank on my behalf. And I will be letting my radiation oncologist and social worker at Swedish Medical Center know that the medical center sent me to collections for a bill that I did not owe--and failed to respond to my letters about the matter--which gave Citibank the excuse it was looking for to cancel my home equity line of credit.

Meanwhile, a friend tells me that Citibank is about to go belly-up. What happens to loans when the bank that holds them goes bankrupt? Can anyone answer this question?

Here's the headline in today's NY Post: CITI IS BEYOND REPAIR

@ Jeanne Sather 2008.

Complaining to the FTC About Citibank

Here is the text of my complaint to the FTC about Citibank's "suspending" (i.e., cancelling) my home equity line of credit:

I have a home equity line of credit with Citibank. I received a letter from Citibank dated May 12 that said it was suspending my home equity line of credit because of a change in my financial circumstances.

According to the FTC Web site, a bank cannot do this unless the borrower fails to make payments. I have always made my payments on time and usually paid more than the minimum required payment.

Also, my financial circumstances (and my credit report) are no worse than they were when Citibank increased my home equity LOC last October, and refinanced my home mortgage in early 2006. I am happy to document all of this.

Need to make a complaint to the FTC? Here's the form (it's easy):

FTC complaint form

I'll be calling Citibank soon. Here are the phone numbers I got off the Web for Citibank PR people, who are more sensitive to this kind of issue than the folks in the Business Service Center, which cancelled my home equity LOC.

Business

Corporate: 212-793-0710

Global Consumer Group: 212-559-1299
(Credit Cards, Consumer Finance, Retail Banking, Women&Co.)

Corporate and Investment Banking: 212-816-6750
(Capital Markets and Banking, Global Transaction Services)

Global Wealth Management: 212-783-2781
(Citigroup Private Bank, Smith Barney)

Citigroup Alternative Investments: 212-793-5462
(Hedge Funds, Credit Structures, Private Equity, Real Estate)

I haven't decided yet which of the PR folks I'll call. Maybe all of them.

@ Jeanne Sather 2008.

WHY Do We Get Home Equity Lines of Credit?

From Teri, The Cheeky Librarian:

The figures I heard from the health professionals on Saturday--the most recent figure for the number of people in the United States with cancer is 10.8 million. The next numbers due out are estimated to be 12 million.

That is a lot of households that are affected by the catastrophic costs and upheaval to their lives, and the homeowners in those situations probably figure to access their HELOC as they pay for their living expenses and care while they heal.

How dare the mortgage company pull that vital resource away just at the time it is most needed?

I can't find any figures on what folks usually do with their HELOC--pay for college, renovate and add value to their home, pay for long term care, whatever. But my home's equity should be available to me for any and all of these reasons--that is why I have invested in my home, in order to get the investment back in some fashion in the future.

Thanks, Teri.

Back to my situation:

I own a house. (Well, Citibank owns 2/3 of the house and I own about 1/3.) In addition to my mortgage, I have (or did have) a home equity line of credit. This LOC allows me to draw against the value of my house, which fortunately is in Seattle, still a strong real estate market compared to the rest of the country.

I have been using money from the LOC for home repairs, and also for part of my living expenses, since I have an incurable cancer. That's what these lines of credit are FOR, was always my understanding.

I don't want to sell my house yet. I don't want to move. I was managing my loan payments just fine, until Citibank yanked the rug out from under me by canceling my line of credit.