This week Bill Moyers' Journal included a very thoughtful and profoundly depressing discussion with Rep, Marcy Kaptur and former IMF chief economist Simon Johnson on the virulent role being played by our major financial institutions. You can find the discussion and links to the video here.
I noticed that among the comments were several people who praised credit unions. I would like Bill Moyers to take a look at credit unions. In light of that discussion, I think it is worth a reprise of an unbossed post on credit unions.
A month before the election, I "penned" a piece called: I am a conservative, and that’s why I am voting Democratic.
Among the virtues commonly thought of as stereotypically conservative - but which I contend many on the left have in abundance - and that are currently not typical of the Republican Party - and have not been for a long time - was being conservative with one's money.
In a section of the piece headed "I am fiscally conservative" I said:
I bank at a credit union, because, in my experience, they offer the best credit terms and eschew the predatory practices so common at banks now.
So it was with great interest that I stumbled across a piece from a few months ago in the Washington Monthly - a magazine that should be on everyone's radar screen - called Too Small to Fail - While the behemoths of Wall Street stumble and fall, humble local banks are
doing just fine, thank you. Their surprising resilience holds a key lesson for twenty-first-century global finance.
They are not talking about credit unions alone, but about an array of small, local banking institutions that have been doing OK amidst the financial storm. The article concludes:
Since the Progressive era and earlier, community banks, thrifts, and credit unions have served customers in a manner that has promoted community building and mutuality while also serving as a check against monopoly finance. Before the recent meltdown of the global financial system, singing the virtues of such small-scale banks might have seemed nostalgic and romantic. After the painful bursting of three financial bubbles in a decade, however, paying attention to those virtues is both essential and hard-headed. It’s a vital first step as we attempt to recover from years of financial abuse and excessive faith in all things large.
I have long banked my money in credit unions. I like the neighborly feel, the ability to walk in and talk to the people handling my money. There are no complex fees for things so basic as talking to a human cashier, something many banks started putting in place a few years ago.
I was pleasantly surprised a few months after the financial meltdown began when I went in to roll over my CD to learn that it was paying 4% interest. This at a time when 0% seems like a pretty good deal.
My current mortgage is through my credit union. Here's why. When I bought my most recent house, I first talked with a mortgage broker who was recommended by my realtor. But my interactions with him were really negative. Despite a sterling credit record, including with houses, he insisted I had to put my house insurance and taxes in a no-interest bearing escrow - and this was not waivable. So I went to my credit union. The interest rates were roughly the same, but - as I was pleasantly surprised to see - there were none of the fees tacked on that you see with mortgage brokers and most mortgages.
So, more on small banks from the WM
These institutions are weathering the storm - and that's a strong positive - and they are weathering the storm, in part because of their conservative values, but also because they were regulated.
Easily overlooked amid the crisis of big banks today, small-scale financial institutions are, for the most part, holding steady—and sometimes even better than steady. According to FDIC data, the failure rate among big banks (those with assets of $1 billion or more) is seven times greater than among small banks. Moreover, banks with less than $1 billion in assets—what are typically called community banks—are outperforming larger banks on most key measures, such as return on assets, charge-offs for bad loans, and net profit margin.
One reason community banks are doing so well right now is simply that they never became too clever for their own good. When other lenders, including underregulated giants like Ameriquest and Countrywide, started peddling ugly subprime mortgages, community banks stayed away. Banking regulations prevented them from taking on the kind of debt ratios assumed by their competitors, and ties to their customers and community ensured that predatory loans were out of the question. Broadway Federal, for its part, got out of single-family mortgages when they stopped making sense. "A borrower comes and asks, ‘Do you do interest-only, no-down-payment, option ARMs?’ " recalls Hudson, with a chuckle. "No!"
The article notes that while large institutions were refusing to loan, the local banks continued to extend credit that was needed to keep local institutions afloat, including nonprofits and churches.
Today, with the world’s system of anonymous high finance in crisis, small-scale community banks, thrifts, and credit unions—all regarded until recently as vestigial players in a new world of global consumer finance—are setting an important example. If federal policies were in place to provide proper support to small-scale financial institutions, Washington could do a lot to alleviate the country’s most serious economic problems: its lack of savings, its runaway consumer debt, its dwindling supplies of social capital, and its vulnerability to financial contagion brought on by Wall Street excess. By encouraging thrift, responsibility, and a sense of community, small-scale financial institutions could play a leading role in helping us dig out of this financial meltdown—and in helping to fend off the next one.
All this goes against the assumption that bigger is better and that rapacious consolidation coupled with competition leads to the best results for us little people. Many of public radio's shows are underwritten by Lending Tree - When Banks Compete, You Win. But do you?
You can find a lot of problems with Lending Tree that mirror those of banking on-line - never actually having a physical place and person you can see in person. The problem of chasing down scams. I include complaints about Lending Tree's practices below so you can read them but DO NOT need to CLICK on the URL - which has a pop-up.
These day's the phrase - Buy Fresh - Buy Local - is all the rage with the food we eat.
But maybe it's time to see the virtues of local in many other areas of endeavor. And maybe one now is . . . Bank Safe - Bank Local.
~~~
Here are the LENDING TREE complaints and the url from which they come, but it has popups.
at http://www.consumeraffairs.com/finance/lending_tree.html
Steve of Comstock Park MI (12/04/08)
My wife and I have lived in our home for 21 years. Our arm expires in March and we saw how aggressive Lending Tree was advertising. We own 3 businesses, have credit scores in the 750's, have not missed a payment in 15 years. We were told we were approved. They solicited all of or sensitive financial documents, locked up our credit lines, incurred us costs, took our $ 600 REFUNDABLE deposit, messed up our credit reports and they continue to do this over and over.Hey, $ 600 for several phone calls and some faxing isn't a bad income now is it? Way to keep them employed! We are filing complaints with the State of Michigan Attorney General and the Predatory Lending division of the FBI. Boy do I wish I would have Googled this first. Google rules!. How about a high profile Class Action Suit. One of you proud Lending Tree casualties has got to be a brazen legal expert.
Loss $ 600 dollars which we were told was refundable Had our credit scores abliterated Sent them personal financial data that in the wrong hands could crush us realized hoe seductive these Internet companies can be, stupid human!
Nic of Holton KS (11/15/08)
I contacted lending tree for my loan to buy a new house. The officer-Michael Rose told me that I will have no problem getting the loan. He asked for $400 to lock in the rate of 5.99% and so I did( 3 weeks to closing). Two weeks we talked back and forth for my information. No manager talked to me but only emailed me once to introduce herself. Then in the last week, he-Michael Rose is gone, never returned my call or anything.My family was frustrated in the last week. I was stressed in the money ($400) and the time consumed in the process. Lending tree just took the money I earned from my job.
Billie of Thorofare NJ (11/04/08)
I applied for a debt consolidation loan through LendingTree. Two days later I was contacted by David (x592) from Cedarbrook Lending Group who stated he was the Account Executive. He said he reviewed my credit and I was approved for a $5000 loan. He said due to my bankruptcy, I was only eligible for a secured loan which was 6 months of payments ($910) upfront. He faxed me the contract.I had my attorney review it and she said it seemed legit. So I went to MoneyGram and wired the money to Michelle in NB Canada. The loan was to be deposited into my account on 11/3/2008 by 5pm est. At 2pm est I was contacted by Stanley in Customer Service (ext 0) who told me that the loan was reassessed by the lender and they required another 6 months of payments down, so I sent it. He then promised me that the loan would be deposited into my bank account by 3pm est on 11/4.
At 2pm est I was contacted by Richard (ext 173) who is the Executive Manager who then stated the lender backed out. I asked for a refund of the money because it was my rent money and he told me that I couldnt get my money until their next billing cycle on 11/24. Including the MoneyGram fees they got me for $1848.92. I have tried to call them over 50 times and they just hang up on me.
I was told today that if I didnt have my rent check by 11/5 that I was going to be evicted from my apartment with my 11 and 12 year old sons. My car insurance was cancelled because the check bounced.
Pam of Etta MS (11/04/08)
In 2002 we went through the same ordeal, out $500, constantly having to fax paper work to them, which had already been faxed numerous times. My work place verified several times that I had been with the company five years. All was well, lady for company came to our home we signed all the paper work for the refinacing of our home. Was told would take up to a week to finalize papers and we were set to recieve our loan and extra money for personal items.In the mean time I became sick and had a minor surgery an was off on sick leave for a week, they called to verify my job once again, now this had already been done several times. Robin calls our home to inform us the due to my sick leave they can not go through with the loan. As soon as I was back at work we could start the loan process over. Needless to say I tried to explain it was only a week leave and could not afford another $500 to do again. So there was $500 down the drain plus apprasial fee.
Loss of $500, plus the fact my husband is disabled and I was stuck struggling to recover from loss of the fee. Also due to there selling of information I could not get a loan and stuck with a high interst loan and may lose a home i have worked my hard to keep for last fifteen years. Are there not any truthful lenders out there to help people like us? If a large lawsuit is brought against this company please let me know. Something needs to be done.
Julie of Bowie MD (09/25/08)
In June 2008, I decided to try to explore options of refinancing or consolidating my equity line and mortgage. I had used Lending Tree for an auto loan years before, and had been pleased with the results, so I went to the website and started the application process. I was quickly contacted by Jerad, who reviewed my information and explained some options. He felt that the consolidation of mortgage and equity line would give me the best result (my mortgage rate was low, but my equity line was higher than current market). He then presented three offers from different banks, but I was extremely surprised to find that Lending Tree now offers their own loans. The rates were close to what was on the market, but certainly nothing special.Of course, the Lending Tree loan (aka HomeLoan Center) was the lowest of the three, and I agreed to lock in with a 600.00 deposit after having the closing costs explained to me. The next day I received the loan documents, and the closing costs were more than double what was originally disclosed. I immediately contacted the broker, who said that the disclosure was just an 'estimate' of what the costs would be, and that some of the costs wouldn't show at closing time. He wouldn't refigure the Good Faith Estimate, and I couldn't trust a verbal 'Don't worry about it'.
I then did what I should have done to begin with. I contacted the Bank that holds both my mortgage and equity line and spoke with them. They recommended not refinancing the low rate mortgage at all, and just changing the equity line to a lower rate. I was able to drop the rate on my equity line 2 points, plus pull some additional money for debt; all without a dime of closing cost. I did lose the 600.00 deposit that Lending Tree refused to return, but consider it a lesson learned.
I also suffered from multiple hits on my credit, I've received literally dozens of mortgage offers via mail and phone. They obviously sell the information as soon as the information hits their database. I think when Lending Tree started financing their own loans, we as consumers lost any true competition from the other lenders. Your personal information is open to all comers, the interest rates are poor, and they don't offer accurate information about the costs of the loans. I will never use them again, and will continue to tell anyone in the market for any kind of loan to stay away from Lending Tree.
Marshall of Mobile AL (09/20/08)
I was scammed out of the $600.00 Appraisal Fee. Lending Tree sends a 3rd rate adjuster out and your house does not appraise for what it is actually worth. They appraised my home at $250,000. My house appraised for $275,000 three years before. I even sent them comps in my area as they requested when the appraisal came back $100,000 lower than the actual value. I used another company and there was no question on the value of my home.Lending Tree is not interested in lending you money, they are interested in their $600.oo fee and that is it. Please do not be swindled out of $600.00. I promise you, it will happen. Lending Tree is a scam. Banks do not compete for your business, they have their own finance company and then they sell the contract off to another lender they use. I called my credit card company and disputed the charge and had it reversed.
Dyane of Nyc NY (09/09/08)
I have 4 homes, a great paying job, a Primere customer at HSBC and Citibank and I was turned down by the one company that turned up. What a disappointing service.Damage to Credit
Donna of Colcord OK (08/28/08)
Dear Lending Tree Victims, I just want to thank you for your online information. I always check Consumer Affairs.com now when I'm about to purchase anything. I'm sorry so many of you have been hurt. But I'm very grateful you were bold enough to make statements to help protect others. I will not be contacting Lending Tree, and I already had their form filled out when I remembered I needed to check for complaints about them. I deleted it.Gregory of Everett WA (08/19/08)
Just over three years ago my wife and I built a 480 square foot addition to our home consisting of a 5th bedroom and a home media room. Before signing the loan for the addition our home which is roughly 1600 square feet was appraised for $328,000. We figured that the $80,000 additionl would increase the value quite a bit.This week we started to consider refinancing and contacted Lending Tree who told us we had to make a payment of $600.00 in order to proceed with the loan process. This would cover the cost of an appraisal and other things as well and would be applied to our total loan. I estimated our home may now be worth close to $350,000+ having 5 bedrooms, 3 bathrooms and a home media room as well. Tom at Lending tree said this all sonded good and gave me estimates of the monthly payments, interest rates and APR which all sounded good.
Two days later an appraiser showed up and walked both inside and outside our home. I made some idle chit-chat with him and discussed what he thought our home was worth. He said it would be difficult to determine since there are very few homes to compare it to in our neighborhood.
Yesterday, we received a call from Tom at Lending Tree who said he had some bad news that our appraisal came in and it was only for $289,000! ($39K less then what it was appraised for just over three years ago without the addition. He then said because the loan to value had dropped that my interest rate junmped and closing costs nearly doubled to almost $9,000 because I was required to purchase mortgage insurance too. Well, this angered me, but what was even more frustrating was that my wife and I found out they only appraised the upstairs of our house or 995 square feet because they said downstairs is basement. A basement? We have two bedrooms, bathroom and a media room that has a sliding glass door out to the backyard! Tom stated that because we live in a split level home that downstairs is a basement. By that analogy then I guess going upstairs to the masterbedroom, kitchen or living room means we are in the attic.
Anyhow, I demanded to speak with a manager who refused to refund me any of my $600.00 and when I asked if I could hire my own appraiser they would not accept it. My wife and I are now out $600.00 and I'm almost certain that my credit is being pulled because as many stories that I've read, I'm receiving calls and emails from other lenders that I have not contacted. I will not do business with Lending Tree ever again and highly recommend that others don't either.
My wife and I have already filed a complaint with the BBB and our state secretary. We are considering also filing a small claims against them as well because of their shady business practice.
Christina of Tampa FL (07/30/08)
I have to concur with a comment made about Lending Tree. I am in the process of shopping for prices and found out that the potential lenders are all checking my credit without my permission. As I speak, my credit score is dropping. Lending Tree should include a disclaimer about the negative impact of shopping around. If it affects my ability to purchase at a good rate, I will sue them.Jim of Show Low AZ (07/25/08)
Had the same dissapointing experience with lending tree that most people did. Took my $600 up front and didn't come through as they say they will. Don't bother using them if you are looking for financing.Renata of Brooklyn NY (07/24/08)
We have basically reached the end of our rope. I own a income producing property, plus my husband works and brings in a good income. We aplied for a loan of 175K, which basically with the income from my property in NYC alone we can cover both mortgages, living expenses and not have to work. LendingTree had it's way of finding a problem. We were asured from the begining that because of our excellent credit and income this is going to be smooth, but don't forget to lock this for $600. right that magic number we all heard.We are now a few days away from closing on this property, and Lending Tree is nickel and diming us over silly issues, showing my child support income, so I did. Than rental survey on my property in NY, never heard of such nonsense. I live now in a highly desirable area, and rents have been and are at it's max, but they don't believe it. We were told that the underwriter aproved the loan BUT we now need 3 month proof of my child support income, the month and half I gave is not enough.
My husband works mostly from home and may have to commute to NYC from CT if necessary, so we were now asked to get a letter from his boss, that the 2 hour commute will not affect his work o pay. Whats next a letter from the gas station that we will fill up there daily and pay for it, or a survey on their prices of gas. This has been a joke, and I have a feeling not only will I loose this home, but also the $600. Be ware, Lending Tree is a SCAM!
May loose the property in question, plus over $1000. in costs of apraisal, etc.
Amber of Rio Linda CA (06/25/08)
In June of 2008 my boyfriend went to Lending Tree to try and refinance. He was told the cheapest way to go would be through them he just needed to give them a 600 down payment that would be applied back towards the loan. He told them he wasn't sure if the house would appraise at what they were shooting for and was told not to worry! These things have a way of working out and he would be pleasantly surprised.So he fell for these lies. They came out under appraised the house and on June 24th we received the call so sorry no loan we can't help you but hey thanks for the 600 have a great day. Is there a lawsuit going against them?
Kathy of Spirit Lake IA (06/23/08)
I inquired on their website, never went through with anything and they sold my personal information to companies,who looke up my credit report without my permission, my score has dropped by 80 points, I may not get refinanced now, and all my credit cards have raised my interest rate to around 28.99% because my fica score dropped! Interest is killing me, and Lending Tree sent me a letter admitting it, saying sorry about your luck were suing on our own behalf. Iam going to sue them. If nothing else I suggest suing them in small claims court for $5,000. I want more this has hurt my life a lot!Cameron of Independence MO (06/06/08)
I am finishing my PhD in Europe, and had a contract for a tenure-track position at a state university in the US. Lending Tree said that if I demonstrated evidence of being in a PhD program and a contract, they would give me the loan. I provided the necessary documentation. They knew the whole situation up front. Then, suddenly, they sent an email stating they were canceling the load. I could not get ANYONE to pick up the phone. We put a downpayment equal to 1/3 the value of the house, and had and excellent credit rating. I guess the first person just promised us what they could not fulfill. Beware!Our loan was delayed (a local bank has agreed to take it up) which means that the rates have gone up costing us a significant amount of money.
Edward of Waterford MI (06/04/08)
They undervalue your home just to scam you out of the supposedly totally refundable $600.00 up front fee then tell you it's not refundable. They appraised my house at 120,000 when it's been appraised by everyone else at 160,000 and up, suing them now!Merry of Lake Worth FL (06/02/08)
Applied for a mortgage and during the 11th hour (the day before closing) was informed that different type of documentation was needed. Encouraged me to seek full time employment even if it was not full time. I am a teacher and like most teacher have the summer off, even though I am paid through August. Contact with this person has been almost none existant. She has lied regarding sending documentation to attorny or realtor regarding closing. Closing time has come and gone and still have not heard from Lending Tree.On the house I wish to buy I have paid for appraisel, inspection, termite inspection, application fee putting me out $2000. Lending Tree has also pulled my credit report, again, lowering my FICO to 619, whereas it started out a 648. With all there inquiries they have gotten the FICO too low to qualify for a mortgage. I have lost the house of my dreams. I feel that the Lending Tree associate has discriminated against me due to sexual orientatiion.
Danielle of Lynn MA (05/13/08)
I received emails stating their current issue of employees hacking into personal information and releasing it to unauthorized personnel. The first e-mail mentioned that they would provide ONE free credit report, yet I should monitor my credit due to this for at least 24 months, at my own expense.The 2nd email now mentions to place a security freeze on my credit with all 3 bureas, explains how to do so, and then says it's also at my own expense. All documentation available. I further read into their FAQ's which state that they only sent these emails to those they thought may be at risk.
Furthermore, I have read articles that inform one that when contacting Lending Tree, despite the numerous times that the calls get disconnected, they do not provide names, email addresses or telephone numbers for any of their legal department. If you ask to have your files removed it is being noted they they refuse to and will ramble of state regulations, but cannot provide any further information. I feel that it is not fair of this business to be aware of a problem that was a result of their own employees and not compensate affected people.
Requires to monitor credit for minimum of 24 months at my expense because of their mistake. Suggests the highest protection is for me to place security freeze on credit, also at my own expense.
Anthony of Arlington VA (05/13/08)
After several phone calls with LendingTree, I was confirmed (Transcripts of phone calls are available) that my promotion code was switched to the appropriate promotion code because my loan was not closed or funded. This was quoted by a representative. The switch never took place and customer relations refused to honor the desired promotion even with evidence. Isn't it unlawful to not honor the original terms and agreement when authorizing the loan to be funded?I lost 10,000 Continental miles (a market value of $250). I could have just canceled the loan and reapplied under the correct promotion before authorizing my equity loan to be funded.
Stephen of Crockett CA (05/13/08)
We were looking to Refinance in order to save $75-$100 per month on our current mortgage payments and decided to contact Lendingtree via their website to see what kind of offers we could get. A few minutes later we were contacted by phone from one of their sales persons. He told us that Lendingtree itself had the best loan to offer us, so we proceeded with the application. After running a credit check and a preliminary appraisal check, he assured us that with the numbers he was seeing, that he was confident that that we would definitely be saving $85.00 per month with the new loan . He again assured us that because of our excellent credit and high equity ratio, that we qualified for $217,000 loan 30 yr fixed rate loan at 5.5% with 2.145 discount points. He went on to say , that even if the appraisal came back lower, there would be no problem because everything else looked excellent. The total fees associated with the loan would be appx $3600 for closing costs and 4600 for a total of $8200.00We were then told that in order to lock in this fantastic rate we would first have to pay $600.00 to Lock-in the rate We were told that the $600 would be credited back to the closing costs after the loan closed. At that time, I made a point of asking the sales person, what if the terms of the loan change and I decide I want to cancel this loan? His response ( which was supposed t be audio taped was If you change your mind the $600.00 will be credited back to your credit card. Like an idiot I agreed without reading the fine print and before I knew it, I had signed an electronic form and the $600.00 was immediately debited from my charge card.
To make a long story short, the appraisal came back $100,000 less than the salesmen himself said it would, which now changed all the terms of the loan completely. Naturally , we protested the validity of the appraisers finding, but Lending tree refused to have it re-evaluated by a 3rd party . As a result, The discount points jumped to 2.5 and The total cost of the loan was now $9800 with an expected monthly saving of only $55.00 a month. At that point I decided to cancel further processing of the loan which was due to close the next day. When I asked for my $600 back, of course they refused, stating that unless the loan was canceled due to their fault, that the $600.00 was not refundable.
The reason I am complaining and want my money back, is that I believe, that indeed, it was their fault. I contend , that they knew all along that the terms of the loan would be grossly different than what they quoted us, but that they stirred us toward it anyway. The salesmen used high pressure boiler room tactics to get us to fork over the $600.00 fee ,when he knew along that the terms of the loan were ridiculous. Who in their right mind would spend $10,000 over the life of the loan to save $55.00 a month.
Company will not refund one penny the so- called $600.00 lock in fee. Quoting that its clear stated in their disclaimer We do not give refunds. As of this time, they refuse to answer the question about weather or not all of the phone conversations being taped. This would prove beyond a doubt,that we were lied to.
Jennifer of Washington DC (05/08/08)
I received a letter date April 21, 2008 from Lending Tree. The letter indicated that former employers of Lending Tree may have given my information (name, address, phone number, SSN#, income and employment information) to non-authorized mortgage lenders. The letter suggested that I continually monitor my credit and to obtain a copy of my free annual credit report, which I did.The problem is that I have no assurance that my information is safe within Lending Tree. I know it is out there and not safe because of the information theft. I called Lending Tree to request that they eliminate my data from their records. I was told by numerous customer service reps that they could not do this. When I asked why, they cited state and federal regulations. When I asked WHICH state and federal regulations prevented this, each staff at Lending Tree told me the did not have access to that information. When I asked who at Lending Tree did have access to that information, I was told to send a letter to their legal department. I asked if that could be expedited via email and was told no. I asked if I could speak to someone in the legal department and was told that nobody can call the legal department. I persisted with getting answers to my question and was subsequently hung up on three times, twice by a manager.
I then pushed for, and obtained the names of two senior level employees, have left messages and have heard nothing back. It is apparent that Lending Tree did not have secure measures in place of safeguarding my information. Upon realizing this, it is apparent that Lending Tree believes that it is only my responsibility for tracking potential damages that may occur to my credit (and at my expense). Finally, it is apparent that Lending Tree will not relinquish my personal information, though requested, for legal reasons they cannot cite.
I have had exceptional credit my entire life. I now run the risk of having my credit record tarnished do to their lack of security processes. I also understand that I must pay (time and money) to continually monitor my credit.
Christopher of Las Vegas NV (05/07/08)
I just wanted to let people know of my Lending Tree troubles. Mid Last year we inquired to lending tree with about wanting a loan. We were in the Market to buy a mobile home.The guy we spoke to couldn't be bothered with only a twenty thousand dollar loan. So we moved on and in febuary bought a mobile home outright. 2 Days ago we received a letter from LENDING Tree at our new address(which by the way we didn't give them) Letting us know about our file being hacked.I was curious as to why we were getting phone calls 3-5 times a week from mortgage company's.Today May 7th 2008 I called up Lending tree trying to get some info to better protect us. I asked, when did Lending tree find out about the BREACH------would not tell me I asked, who iniated the breach the Mortgage company or the former employees------would not tell me. I then asked to speak to a manager and was passed to someone called NIKITA. Very pleasantly I asked the same questions. I was told that is not our business and to just let it go. I then asked for their lawyers telephone # and she HUNG UP on me. I than called back and asked to speak to NIKITA and was put on hold for about 5 minutes. When NIKITA picked up the line and I asked her to explain why she hung up on me she said this matter does not concern you. When I asked her to give me lending tree's lawyer telephone # she said i can give you an addrress. I said I want the telephone # to the LENDING TREE'S LAWYERS----------SHE SAID NO AND HUNG UP AGAIN.
Guess RUINED CREDIT OF so many People Doesn't MATTER TO lENDING TREE. The fact that ID can be stolen, INQUIRIES will hurt credit and the fact for the next 2 years we have to spend our own money to monitor our credit and that might still not work and could destroy our lives is NOTHING to Lending Tree. Is their anything we the people can do? Their lack of compassion is ASTOUNDING. PLEASE CAN SOMEONE HELP.
Economic Consequence could be catastrophic. Not to mention if our I:D is stolen, someone could commit crimes in our name. My wife was working so hard on building up good credit since she never had any before that all her work is most likely ruined. The not knowing is what worries us the most.
Nalini of Bloomfield NJ (05/01/08)
A few months ago I decided to shop around to see if I could get a good deal on a home equity line of credit. I decided to use Lending Tree. I immediately starting getting calls from mortgage companies and I specifically asked them not to run my credit since I had decided to go with my own Bank who gave me a better deal. A few months later I decided to apply for a loan and was shocked when I was turned down. I asked why and was told that I had too many inquiries on my credit report. I pulled my credit and was astonished to find that many inquiries had been made for my credit report and all of them had been from mortgage companies. I called Lending Tree to complain since aside from my bank they were the only ones I had ever contacted.Lending tree customer service was unapologetic and said that this was basically how their company operated and that I should not be surprised to see inquires. I informed them that a number of companies that were not even on the list sent to me by Lending Tree had made inquiries. They did not care and again reiterated that this is normal. A few weeks ago I got an e-mail from Lending Tree informing me that some employees had stolen my data and that I should monitor my credit.
I called their customer service and indicated that these companies had adversely affected my credit score. All the customer service guy could tell me was to run my credit and monitor to see if any fradulent activities had occurred. I asked is they could at least offer to pay a credit monitoring agency to monitor my credit since it is impossible for me to do so on my own. They said they could not help me at all. I am so upset, my social security all my data was stolen and the company responsible for this is unwilling to even pay for credit monitoring.
I lost the opportunity to obtain a loan since the number of credit inquiries caused my credit score to fall. All my data was stolen and I can be a victim of identity theft because of Lending Tree's breach of security.
Scott of Portland OR (04/27/08)
I too received the same letter as Michelle (see: Michelle of Conway SC (04/25/08)) from Lending Tree stating that they had several employees release company passwords which gave access to all inquires to LendingTree, which included names, addresses, employment history and soc. sec. numbers to unauthorized brokerage houses. I too, did not retain LendingTree for any of it's services. As I spoke with various individuals at LendingTree, I was basically told to constantly monitor my credit report to ensure that my credit was not being compromised. I am fully aware that this is the new way to commit crime in this century.However, I was just appalled that LendingTree is taking NO ACCOUNTABILITY in at least offering some kind of identity theft credit monitoring service to those that may have been effected due to their negligence in having some kind of identity theft implementation program in place. Due to their negligence, I now have to spend countless hours monitoring my credit report and contacting credit bureaus insisting that they remove any potential inquiries or fraudulent activity off of my credit report. I just don't have time in my day, mainly due to work, to combat against anything such as this. If LendingTree were even remotely interested in showing some level of concern in regards to some remedy in this situation as opposed to placing the responsibility on the consumers to undue what they caused, then I would not be as angered as I am right now. If there is some kind of class action lawsuit of there against this kind of careless activity, please let me know and sign me up!
I am now having to pay to have my credit monitored on a daily basis, as opposed to just ordering my FREE credit reports quarterly. This situation will/is causing: financial loss due to having to pay for a credit monitoring service; potential negative credit report; more lost hours of work time; and numerous hours of worry & stress.
Michelle of Conway SC (04/25/08)
I received a letter from LendingTree today in the mail. I had applied on their internet site in January 2006 and never completed any transaction with this firm, instead finding an alternate re-finance company.The company I went with informed me that my credit was pulled 42 times in a 3 week period, did I know why that happened. I informed them that I had applied to LendingTree a month before. I was very concerned at the time, as this impacted my credit scores.
The letter I received today informed me that several employees released company passwords which gave access to all inquires to LendingTree, which included names, addresses, employment history and SOCIAL SECURITY numbers to unauthorized brokerage houses. This certainly explains the 42 hits on my credit report.
My phone call to LendingTree this afternoon was quite frustrating as all the personnel ( Lisa, supervisor & Noel, customer service ) could suggest to me was to contact each credit bureau and Tell Them to REMOVE the 42 credit inquires against my report. I further asked them if LendingTree had informed the credit bureaus of their lack of employee supervision to assist consumers affected by this breach of their security process. I was advised that they were not responsible for any activity on consumers credit reports and felt no need to intercede on consumers behalf with the credit bureaus. What arrogance! What total lack of professional, ethical behavior! Their company employees have impacted how many consumer credit reports and they have no responsibility?
The letter states that LendingTree has filed suit against 3 brokerage companies involved with the scam, covering their own backs, but leaving an untold number of consumers to deal alone with the credit bureaus. This has to fall under some consumer fraud law. I was looking for assistance from LendingTree in resolving the excessive hits on my credit report and all I got was the brush off. Has anyone else received this letter? We need to band together and pressure LendingTree to help all the consumers affected by this mess.
I paid a higher interest rate with another lender because my credit score was impacted by the number of inquires in such a short time frame, caused by LendingTree employees.
Victoria of East Kingston NH (03/04/08)
My husband and I applied for a loan on LendingTree. com and received a call from their rep, Jerad Douglas, to discuss our options. He offered rates with two other lenders that were similar; but as Jerad explained, only through Lending Tree's lender, Home Loan Center, Inc., could they guarantee what the closing costs would be. We agreed, provided a deposit that was necessary to lock in the rate, and began the process. An appraiser came out the next day, and that is where the problems began. They claimed that we had an illegal in-law apartment over our garage and would not fund the loan, nor would they refund our $600 deposit. I informed Jared the in-law apartment was indeed legal and asked what paperwork they required from my town office for their records. They could not tell me what they needed; they just kept giving me the run around. I found my original building permit and occupancy permit from the town and faxed it to Lending Tree. I had to follow up with them several times over the next week, while they told me they had to wait for the appraiser to update the appraisal.A week later when I called, I was told that the appraiser determined that it was still illegal because the of the kitchen, even though the town ordinances and my permits clearly showed that the space was legal. Now they want me to get another building permit that specifically spells out a kitchen. It is just 3 days short of the deadline to close with the locked in rate, and it looks like we will be out our $600.00 deposit. I have used Lending Tree in the past, BEFORE they had their own loan center, and it worked well. Now it seems they are looking to scam people out of fast money and they don't really want to refinance loans.
We are out our $600.00 deposit and the time and effort to get this done.
Cindi of Stockton CA (02/20/08)
I am closing escrow with an FHA loan through Lending Tree in two days. Using Lending Tree was one of the worst decisions I've ever made. For starters, my husband and I applied for loans with several companies, with Countrywide giving us the best GFE. Lending Tree told me they could meet or beat the Countrywide rate, beat the APR%, and not only beat the fees, but give me $700+ cash back at closing. Lending Tree, which now funds their own loans (so much for when banks compete, you win), makes sure to quote you a better rate than the other banks, but then springs a higher rate/fees on you once you're so far into the process you can't turn back. They used high pressure sales tactics to get me to give them the $400 for an appraisal. Once that was paid, they supplied me with a GFE (good faith estimate) that didn't match what they verbally told me on the phone. Not only were LT's fees MUCH higher than what we had been quoted by Countrywide, but the APR% was higher (not lower, as they had promised). All in all, with Lending Tree the down payment was higher, the amount financed was higher, and therefore our monthly payment was higher.On top of that, their incompetence is amazingly high at LT. I've had two previous FHA loans, and I know what documentation is required. I sent all required docs at least 30-45 days before the loan was to close, but they'd turn around and ask me for stuff I already sent them two weeks down the road. Supposedly, they sent my loan to underwriting THREE times, and I don't have any issues that need explaining. My credit is good, I have the 3% down in the bank, and good job history. Also, rates were at 6.0% when I applied, and I asked how long till we should lock the rate. LT's rep told me that the Fed was going to drop interest rates, and we should see if that would have an impact on mortgage rates. Apparently it did, and they told us our rate dropped to 5.875%. I then asked LT to lock the rate in an email, and they refused, telling me some line about how FHA doesn't allow them to lock the rate until closing.
I sent them several emails asking them to lock the rate, and asking them to fix the supposed good faith estimate. They asked me to contact them via phone, and refused to give me anything in writing or email. This is the 4th house I've bought, with a handful of refi's, and I swear this is the most stressful experience I've ever had. After 6 weeks of misery, we now found out that our rate went up to 6.375%, surprise surprise. About 1-2 weeks ago, I started trying to find another loan, but it was too late at that point. Apparently, it's very difficult to transfer an FHA loan application # once one has been created. I would not recommend Lending Tree to my worst enemy. Please stay clear of them when shopping for a home loan!
Stephen of Germantown TN (01/28/08)
I was ONLY inquiring about current mortgage rates on line. I filled out some info and decided that it was too much just for a rate. I thought I had backed out of the site and deleted it.Lending Tree sold my information without my consent to many mortgage a/o lending groups. I have had over 30 calls trying to sell me a loan.
Ray of Bronx NY (01/17/08)
I was told by Mark that I could put a totally refundable deposit down to lock in my rate. I asked if I found a better rate, which I did, would I be fully refunded--and he said of course. I put a $500 deposit on my credit card. When I asked for a refund, he said he would get back to me or that his manager would. I have called many, many times to no avail. I will not give up. They are not going to steal my money just like that, right in my face. I have seen that there are many others who have suffered a similar fate, and Lending Tree will keep on doing this until they suffer some damage to their bottom line.I'm out $500 plus interest on my credit card that I desperately need. I'm unemployed, and this has just added to my increasing debt.
Nathan of Seattle WA (01/09/08)
I visited the website, started the process of filling out the forms but when I got to the LAST page, and read the terms and conditions, I did not agree with them, so I attempted to back out my information. I never clicked agree on the terms and conditions and never submitted the information. Yet they kept all of my information. I got a call early Sunday morning. I told the person I did not sign up with lending tree and I wanted to have my information removed. He refused. I spoke with a very polite manager, who also refused. I asked to speak to someone with enough authority to remove my information. I received a call two days later from Robin Chandler, who refused to remove my information and said that by filling out any information on their website they had a right to keep my information and report it to other agencies as they deem fit. If my ID gets ripped off, it's because of lendingtree.com.I've complained to our state attorney general's office, and plan to make additional complaints with any and every legal entity I can find. Their site is misleading, it says nothing about keeping your information if you don't accept their terms, and they don't honor their do not call list. I've been on it for a while and keep getting calls and emails, despite unsubscribing. The bottom line is, the Internet is not safe and I should never have given out my information over it. I will never go through any banking process without sitting down in person with a live person!
Pete of Columbia CT (12/19/07)
DO NOT DEAL WITH THIS COMPANY. I feel like $600.00 was blatantly stolen from me. Got to the appraisal process of a refinance package and appraisal came back very low. I had a previous appraisal done for another lender, sent it to Lending Tree, but they refused to consider it. The appraisal that Lending Tree issued shows no increase in equity from the purchase of the home 4 years ago.They refuse to refund the $600.00 rate lock fee that was charged. They expect me to re-apply in 6 months in the expectation that home values will rise to a point that the process can be completed. Unbelievable.
Jean of Olyphant PA (12/09/07)
I have never been given such a run around as I have experienced with Lending Tree. They are lacking in knowledge and operating a poor site. I am totally disappointed with the service I received and will never recommend them to any sane person. They are misleading and in my opinion fradulent.Patrick of Winter Park FL (12/03/07)
This company has to be the worst loan experience I have dealt with yet. I have felt myself falling into the same old hook and sink. Lending Tree will tell you about all the great things that they can do for you and after receiving all the information about the property, due taxes and recent sales within the community, they told me that my appraisal should not be a problem. Then the appraiser spent only a whole 5 minutes in and out of my residence. This individual took about 6 pictures of my property and then left. My appraisal was so low balled by the company that they said they had to use sales from over 2 miles away, in the ghetto nevertheless. Let's compare some apples to rotten oranges. Now Lending Tree wants me to gather previous appraisals from various residents who have refinanced with other lenders who had no problems with their appraisals. Imagine me doing all the foot work? What am I paying closing cost for? And all the other fees? They had the audacity to tell me since this was a FHA loan that my appraisal would be significantly different. I see my property is valued upon the type of loan they chose for me. A nickel is worth a penny if you are FHA, but yet a dime if you choose another program. $200,000 is $200,000! Well, they took me for the $400.00. Monica Hernandez assured me about the security and smooth process of my loan. Wrong! Then I was transferred to another who had no clue about what was going on and totally ruined the remaining process. It was Katie Heran. Down right clueless! I am not writing this because of my measly $400.00 loss, but maybe to save others from making the same mistake I made.Rebecca of Shannon IL (06/26/07)
We contacted Lending Tree based on the fact that they would attempt to get creditors to compete for a lower rate they sent us to there own loan company Home Lending or something like that and sent out the worst appraiser this side of the Mississippi who compared our house value to a house that sold over 30 miles away and in a different town.Everyone in this area knows that the town she used has nothing going for it with the only real business being a bar where as the town we live in is close to the town where everyone works and is an easy commute so folks can live in a basically rural setting and still get to work easily.
When we had a realtor from Century 21 provide a real CMA they told us it was not appropriate as they sold over 6 months ago (it isn't a gallon of milk where the value would change that much in 6 months) They also took 400.00 up front and refuse to give it back and when I spoke with Noah regarding the crazy appraisal he advised that he had just gotten off the phone with another customer who was fighting the appraised value.
Paul of Lincoln CA (03/29/07)
We called for information after receiving an advertisement in the mail regarding mortgage reduction. Spoke to Scott and were told in order to start process, we had to pay $400.00 up front. We were quoted 5.875% + 2 points and an additional $3505.00 in other costs and fees for a total of $9600.00 in settlement charges. We decided to check with our bank and found that we were being overcharged points, the upfront fee was not reasonable and the settlement charges were considered high. We decided to go with our bank and when we called Scott he said he would match our bank's quote with a couple of exceptions.
We advised him that his company was no longer an option. We called and asked that the appraisal be cancelled and we submitted an e-mail to the company also. Unfortunately, the appraiser showed up at our door and we were told by Scott that they were keeping our $400 so we let the appraiser do his job. On the back of the form we responded to, it stated that there are no fees to get started and no obligation... and yet they took and kept our $400.00. In the meantime, we have sent letters (2/21 and 3/7) requesting at least a copy of the appraisal, but to date nothing.
Wayne of Washington, DC (10/17/06)
We had an excellent loan offer from a lender sponsored by my wife's employer. No one could match it, and they told us it was a great deal (Citi, Bofa, Wells, Countrywide.) Lending Tree, however, said they could.After collecting all of our information, the saleman pressured us for a $600 deposit and promised that he would send the detailed breakdown afterward. Since hearing about several problems from other people about the deposit we asked for someting in writing. He refused and promised us it is refundable.
Pressing him some more, we found that the deposit creates a binding agreement and is only refundable under very strict conditions. We also found out that there were many other costs that would be sent our way in the process of closing the loan. After he refused to give anything in writing we refused to do business.
John of Chester NY (08/02/06)
When setting up my HELOC, I was VERY specific that I wanted a Fixed rate. I was promised it and was also given a maximum payment that my monthly payments would never exceed. Unfortunetly, I did not keep that e-mail. My loan was transfered to Country Wide. In a conversation with them today, I found out my rate is adjustable. When you read what I signed, it is very confusing. The papers are thrown in front of you for you to sign, and you assume that the information is what you agreed upon. It says it is fixed but in small words states it is introductory. The only introductory thing I was advised of was 3 months interest only.Aimee of Fort Worth TX (07/24/06)
I purchased my home in December 2005 and was promised a gift card of $500. I followed up in March since I had not received the card. It is now July and I still have not received the incentive that was promised to me.Deborah of Brandywine MD (05/02/06)
I contacted LendingTree.com regarding a refinance loan and was told by the representative Mr. Daniel Lete that I would have to give him a $400.00 deposit to secure the lock-in interest rate on the loan and receive additional information regarding the Mortgage lending process. I stated that I was concerned about providing my credit card information without getting any information in writing first. Mr. Lete assured me that my deposit could be refunded. However, after giving my credit card information I was sent an e-mail from Mr. Leta which included detailed information on the loan and the very limited circumstances which I would be entitled to a refund of my deposit. Mr. Lete was quite misleading.The matter resulted in my not getting my deposit back after the loan agreement was never signed or processed. After getting the lock-in interest rate, I needed to change my refinancing amount. I was advised by Mr. Lete to get a home equity rate because of the low amount I was requesting. I declined to proceed with the process after I was quoted a very high interest rate.
Delaine of Alexandria VA (12/26/05)
I subscribed to a lead service advertised by Lending Tree.COM AKA Realestate.Com. The service was suppose to send QUALIFIED LEADS to me for a fee per month. The leads were terrible and I cancelled it immediately. I wrote them, called them, and sent emails. They CONTINUE to bill my credit card for the monthly fee. So now every month I have to call AMX to dispute the charge. They refuse to stop billing me.Richard of Myrtle Beach SC (11/17/05)
I had a good faith estimate on my new home of 5.125% this past year. I have been wondering why my rate was higher than my friends when he had a 6% rate. Come to find out they charged me 6.125. This is a rip off and I fell for it. Throwing all those papers in front of me at closing and me not seeing the difference between a 5 and a 6 on the closing docs.Michael of Lunenburg MA (10/30/05)
I was promised a Home Depot or AMEX Gift Card after closing with the relator that Lending Tree referred me to. I completed the necessary paperwork within 24 hours of my closing in June. It is now 17 weeks after the closing and I have not received the incentive despite a promise of an 8 week turnaround. I had made 2 calls between the closing and the beginning of September to check and make sure everything was submitted properly and things were progressing. I was assured it was.When I called mid-September to ask where the gift card was, I was told they were missing paperwork from the realtor. Over the course of the next 2 weeks, I was told that they were getting all of the proper paperwork from the relator. Late in September they stated the gift card was approved and in for processing and should take 2-3 weeks. It has now been 4 weeks and no gift card. I called today and they claim to have mailed it out on 9/22 despite 2 conversations (and emails) after that time that state it was being processed.
Loreen of Palatine IL (10/01/05)
The process seemed to be coming along fine until the closing date. It was only then that I was informed that my property was legally considered a condo, instead of a townhouse. This changed my rates significantly and cost me quite a bit more in points. I was obviously very upset by this, but Joe Mendoza told be that this was not a big deal. As this did not negatively effect his pocketbook, I am sure that for him it was not a big deal. To me, it was.Of course at this point there was nothing I could do. If I tried to seek another lender I would be in default. Gail B sent me an email on 8/22 (more than one week before the closing) stating that she received the appraisal for the property, which, according to Joe, is where he discovered that my property was actually a condominium. On 8/22 I would have had time to look for another rate. It seems at best irresponsible and at worst deceptive to not check this information and inform me on 8/22. I was also informed on the day of my closing by Gail B that there was litigation pending against the condo association and that she did not know of any lender that would approve a loan with this type of litigation pending.
After speaking to my attorney, he explained to me that although there are some lenders that would deny a loan on these grounds, it was very common for a loan to go through under these circumstances and was rarely a problem. My attorney also explained that this information had been available and that the sellers had informed him that lendingtree had not requested any information until the week before the closing from them (the sellers), much later than they expected. I realize that I was working with a tight time frame on my property, but I was assured from day one that this was not a problem. I also realize that problems can arise with any deal and can understand a few bumps in the road. What I do not understand is why the people that worked on my loan were so irresponsible.
Steve of Mesa AZ (05/19/05)
Lending Tree is using an unusual disclosure technique to hide actual closing costs from borrowers and build in "junk" fees. I have had good experiences with them in the past when they were operating as a referral source, but now they are licensed as a bank and closing the loans in own name, acting as the lender and playing by their own rules with the federally required disclosures. They also tried to force me to use their settlement services company so they can pocket those revenues as well. Unfortunately, even though I am a banking professional myself, I did not realize what they were up to until after they had already collected $600 from me, which they refused to refund.Basically they quoted me a standard rate and origination/discount cost which a agreed to. They also mentioned there could be up to $2900 in additional closing costs. They quoted this as the "True Cost" of the transaction. I was unconcerned because I had already selected a title company that I routinely worked with and knew that my actual costs would be about $1300, plus some nominal charges for doc prep, etc. When I received their initial Good Faith stimate I was concerned that they did not break out the settlement costs, and they also asked me to sign a disclosure indicating that I had not paid for the appraisal and therefore had no right to a copy of it. What was my $600 for? The secondary investor's lock fee I was told.
As I am an employee of the secondary investor, I knew this was a lie and that this was really a tactic to keep me from taking the appraisal I paid for and going to another mortgage source. They want to inflict as much financial pain as possible if you figure out you are being ripped off and try to leave. Sadly we lost $600 to Lending Tree, but even with that I am saving over $1000 by going somewhere else. I spoke to several managers at Lending Tree and this was not a one off, but standard operating procedure. I suspect thousands of people are being treated this way and there are probably grounds for a class action suit.
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