JPMorgan Chase Mortgage Refinancing Scam -
Short version - We've had a mortgage with Chase about 8 years - $400K house w/ $50K loan balance @5.62%. No interest in refinancing. Out of the blue Chase rep calls wife's cell phone mid September. "How would you like to get a lower interest rate of 4.25 on your loan for $500?" What's in in for Chase we ask...we retain you as a client... sounded reasonable. Met the Chase caller who was the local Loan Officer September 21. We ask some very pointed questions and are asked to write them up in an e-mail which we did...no answer despite repeated requests. If he had answered we would have stopped the process right then and there. Get the official GFE in the mail Oct 21. $5K estimated closing costs on a $50K loan. What happened to the $500 cost we ask - Oh that is the non-refundable loan application fee...Which Chase will credit once the closing costs are paid. Complain - no response, escalate within Chase, no response. They don't care, they have my $500 and the sales guy will get a bonus for every customer like us.
Classic Bait and Switch.
In a Aug 25 2010 Chase press release - They hired 8,000 new employees to handle mortgage mess. 913,000 applications, 270,000 approved. At $500 per application that is over $321 Million in revenue just in declined applications. Not a bad business. No wonder they posted record quarterly profits.
Many, many similar complaints. It is legal theft.
Product or Service Mentioned: Chase Bank Loan.