Washington Mutual /Chase Bank

In September a Washington Mutual representative informed us that we had a Home Equity Line Of Credit that we should do something with. We called and confirmed with a different Washington Mutual rep; then we used a portion of the loan to pay off some higher interest bills.

A month later, Washington Mutual froze our accounts and stopped payment on our checks/auto-pay. It turns out that the line of credit that had been attached to our account for over a year was someone else's account.

For more than a month, Washington Mutual/Chase Bank has continued to change the terms of the offer while holding our accounts hostage. We feel helpless against an institution this size. An organization with the ability to freeze our accounts until the mistakes they made are corrected. We really need some help and do not know who to go to at this point. The executives who said they would help (Rosie Alvarez and Anibal Cardona (800-225-5497) are no longer returning our calls.

We believe the easiest and best course of action would be to separate the HELOC from the other person's account for the amount borrowed. This could be attached to our accounts and we should be required to make the payments as outlined when we accepted the loan as stated by two separate Washington Mutual representatives (Tom Bushman and the Customer Service Rep.). This may need to become an unsecured loan, or it might need to be changed to a HELOAN. Regardless, we were told the loan was ours to use by two representatives of the bank, we used 1/5 of the loan, and we want to pay the loan back according to the original terms or those verbally offered to Sandra Anderson by John Goodspeed (206-500-6410) on December 04, 2008.

Dagny Hooke (503-238-3367) changed the offer to a higher rate and worse terms an hour later when Sandra spoke with her concerning finalizing the loan.

Please help. We have documented everything.

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In September 2008 my wife and I were considering our options for locking in our mortgage. We have an ARM through Washington Mutual and Washington Mutual was advertising an offer of very low or no fees for people wanting to refinance. We called Tom Bushman of Washington Mutual ( PH. 949-477-3985).

Tom ran our credit and said everything looked great. My numbers are in the high 700's, my wife's are in the low 800's. We were also told how well our home has held its value. Then Tom said that our debt to income ratio was a problem. Tom also mentioned a $250,000 line of home equity credit that we had opened a few years earlier at a very low interest rate. Tom suggested closing or using the line of credit. We said we'd think it over.

My wife and I discussed the pros and cons of closing the line of credit. With the looming financial crisis, we figured credit would become very hard to get, at least for a while. We further discussed paying off some of our debt.

A few days later I called Washington Mutual’s customer service (PH. 800-788-7000) to verify the home equity line of credit as it was showing up on my wife’s online banking, but not on mine. After correctly answering the identification verification questions, the service representative said she did not know why the line of credit was not showing up on my account, because I was listed as having access on her end. She confirmed the interest rate, amound of the home equity line of credit and told me I could access the line via check writing, debit card, or by going into a branch.

My wife and I decided to use 1/5 ($50,000) to pay off a credit card and a car loan. We used the online banking system to transfer the funds from the loan to accounts where the bills could be paid.

10/31/2008: My wife and I both tried to transfer money via on-line banking to our joint fund, as we do every month, and the request was denied with a message that the transaction could not be completed at that time.

On 11/01/2008: I tried to use my debit card to get gasoline and was informed that my card was no longer good. I went home, attempted to access my online banking, and received an error message. I assumed that Washington Mutual (now JP Morgan Chase) was having technical difficulties.

We tried to schedule the transfers to occur the next business day, Nov. 3, 2008. When we saw that the transfer still had not gone through, we became alarmed. We have automated payments for several large items the beginning of the month – our mortgage, our auto insurance, etc.

The following day my wife went into the branch to see what was going on. She was told our accounts were “frozen” and our ATM cards were not valid. After a bit of research on line and via telephone, Jennifer Simon (PH. 503-238-3367), a Sr. Personal Financial Representative, explained that the line of credit that had been attached to our “profile”, was not actually supposed to be there. There had been an error made on their part. The home equity line of credit that Washington Mutual had attached to our account, recommended we use, and confirmed its availability to us, was actually someone else’s, and the Fraud Department put a hold on all of our accounts. This included an out of state relative’s account. Jennifer said there was nothing she could do at this point but would look into finding a resolution soon.

11/ 4/2008: We received a voice mail message from Donna (PH. 866-513-9186, ex. 4284) stating we need to contact her in regard to this account. I called back at 3:15 PM and received her voice mail. I left a message notifying her that we were trying to call her back. He answering system mentioned a supervisor names Jane Compose (PH. 209-460-2850) and suggested trying her if Donna was unavailable.

I called Jane at 3:20 PM. She informed me that she could not find any information as there was not an “open case.” I provided her with my social security number and she said someone would call me back. It is now November 11, 2008, and the return phone call has still not occurred.

After hanging up with Jane I called Jennifer Simon to provide the contact information for Donna and Jane. I also called Donna again, left Jennifer Simon’s contact information, and let her know that I had called Jane.

11/05/2008: My wife emailed Jennifer Simon the contact information for Tom Bushman.

11/06/2008: I spoke with John Pereira (PH. 503-238-3367), an assistant financial center manager with Washington Mutual (JP Morgan Chase). He said he could not unlock my account, but did unlock our out of state relative’s account. He also said he unlocked my wife’s’ account and transferred money ($2,110) from my checking account to our joint checking account to cover our bill payments. John stated that his manager, Janelle Burns (PH. 503-238-3367) would look into helping resolve the issue of our locked accounts. He stated that, “Janelle is very good. She can get things done. You’re in good hands.”

11/07/2008: Called Janelle, who was busy, asked for John, who was at lunch, and then asked for Jennifer, who was with a customer. John called me back. I expressed the of access to our accounts for bill paying and depositing funds. He said he would look into it and call me back.

Ten minutes later John called back and informed me that he was unable to lift the lock. He said that my account is still attached to the other person’s account (Sheila Anderson?). Informed me that there is a restraint to not honor any debit from my accounts and that the situation is in the hands of the Washington Mutual (JP Morgan Chase) legal department. John recommended stopping our automatic deposits into our accounts.

11/08/2008: My wife logged onto her account and based on John’s unlocking and money transfers on 11/06/2008 we submitted our regular automatic bill payments. We also made a payment of $200 toward the home equity line of credit loan. Confirmation number 345.




11/10/2008: All auto bill-pay payments through Washington Mutual/Chase Bank failed.

I called customer service 8:35pm PST (PH. 800-788-7000) and spoke with Jonathon who informed me our accounts, including bill pay, had been blocked. Jonathon said he would transfer me to an escalation account supervisor named Kim. A few minutes later Jonathon came back and said Kim did not need to speak with me, but had removed the hold on the bill pay. As directed by Jonathon, I logged back into the account ending 8001, canceled the failed payments, and resubmitted new payments.

Called Washington Mutual fraud dept. Asked for Donna, received Lacey (PH. 866-513-9186). Lacey stated that there was not an open case involving my social security number or any of our bank accounts. After placing me on hold to look into our accounts being locked, she came back and said that Donna would be returning the call.

Donna called back. Said my wife and I both have an account open, but that the joint accout where our household bills are paid from is still locked. I requested for that account to be unlocked. Donna informed me that they had to keep a lock on at least some of the accounts, so I asked her to look into switching the lock from our joint account to my personal checking account so that our automatic payments would not be held up. She said she would see what she can do tomorrow (today is a holiday) and get back to me.

11/11/2008:

Faxed a complaint to the OCC and copied the document listing all of our phone calls and records, the printed-off list of failed automatic payments due to our household account being locked, and a summary of how we would like to see the situation resolved. Also emailed document to everyone we had been in contact with, including customer services @ Washington Mutual.

11/12/2008:

All of the payments that customer service (Jonathon and Kim) said would now go through failed. The account it still locked.

Sandra called Janelle and she said she was surprised that our account was still locked and would work the problem and call me back. She called back in an hour or two and said the account was now available for Bill Pay. She also said to stop making any payments to the HELOC. Asked about late fees since our bills couldn't be paid on time, and she said to let her know about any charges. She said that legal is working on a solution and that we should get notification from her regarding status tomorrow or Friday. We also received a call from Donna who said our account was now available and then received another call from Anibal Cardona who expressed his apology for our situation.

11/13/2008

Received a call from Anibal Cardona (PH. 800-225-5497). He asked if it would be acceptable to receive a new loan (HELOAN...? instead of the HELOC), so that they could close out the HELOC that was still attached to someone else's' account and settle the issue. I told him I would talk with my wife about it. He assured me the loan would be approved on the "back end," apologized for the inconvenience.

Called Janelle, who said we could meet on Saturday, November 15, 2008.

Called Anibal back and informed him of the discussion with Janelle.

11/15/2008

We met with Dagny Hook, Sr. Loan Consultant at the Uptown Financial Center. We provided the information requested, and got a small list of additional information needed to process a new loan.

Janelle Burns provided a cashiers check for a $25.00 fee for returned check to Kroger. She again said to keep track of the late fees, additional charges, etc. that occur as a result of this error. She also provided a letter stating that the error was caused by Washington Mutual.

Later that day, we received notice from Brinks that the auto pay had failed. We tried to pay over the phone and the customer service representative told me our joint account (8001) was still frozen.

Called and left a message for Anibal and tried to reach Janelle, but could not get through to her voice mail.

11/16/2008

Bank check for groceries refused at Fred Meyer store.

11/17/08

Anibal called Sandra and said the fund account ending in 8001 was not locked.

11/18/2008

We received a letter in the mail stating that our automatic mortgage payment with Washington Mutual was rejected, our payment plan had been cancelled, and a fee had been affixed to our account. The letter recommends re-applying for auto-pay.

I called Anibal and left a message notifying him of the letter, since he had said our mortgage payments were covered until this was settled. Sandra spoke with him later and he said he accidently erased the voice mail, and did not know what the message was about.

11/19/08

Received a call from WAMU wanting a phone number to verify Sandra's employment.

11/22/2008

Check from account ending 8001 was rejected at Bed Bath.

A personal check was returned to a manicurist.. There was another fee.

Sandra left a message for Anibal concerning the accounts and to inquired about the status of the loan.

An envelope arrived in the mail from Washington Mutual/Chase bank. It contained loan documents that referred to an interest rate of 6.050%. Email was sent to Dagny Hooke, Janelle Burns, and Anibal Cardona for clarification.

11/24/2008

Received a letter from Washington Mutual informing us of a payment that was made through the “FA’s Just In Time EFT service”. The letter stated that we had verbally authorized a payment of $2,686.25.

Left messages for Anibal but did not hear back.

Spoke to Dagny Hooke who said she thought we would receive final loan documents by Wednesday, November 26, 2008.

Spoke to Janelle Burns who said that the $235.00 removed from our account was for the principal for our mortgage. She said our three checking accounts are not frozen.

Received another packet from Washington Mutual. Loan interest rate @ 6.050% for 360 months.

Email sent to original Washington Mutual email exec list, including Dagny, Janelle, and Jon asking who we need to speak with and what we need to do to work this problem out with Washington Mutual/Chase Bank.

11/25/2008

Received another letter from Washington Mutual/Chase bank informing us of a payment that was made through the “FA’s Just In Time EFT service”. The letter stated that we had verbally authorized a payment of $235.68.

Dagny called around 5pm and left a voice message stating that she had not heard anything concerning the loan we applied for.

Rosie Alvarez (sp?) called at 5:20 PM. She is taking this problem over from Anibal. She said they are working on negotiating better loan terms for us. She stated that she will contact us again on Friday, November 28, 2008 or Monday, December 01, 2008 with information concerning an offer. She also stated that Washington Mutual/Chase Bank would not unlock our accounts until we sign new loan agreements.

11/27/2008

Called Washington Mutual/Chase bank (800) 788-7000 to reset online password. Still unable to access accounts online, including personal checking account.

8:30 Sandra left voice message for Rosie Alvarez, requesting information on loan application status.

Filed a new complaint/updated with the OCC.

12/01/2008

Sandra called Anibal, Rosie, and Dagny. Rosie and Anibal did not answer, no message was left. Dagny stated that Rosie and John Goodspeed (PH. 206-500-6410) are handling everything now, and that she (Dagny) is no longer involved with our loan/issue.

Rosie has not returned call, as per our conversation on 11/ 25/2008.

4:30 PM, called Rosie, left voice message letting her know that we were curious about her progress with our loan.

12/04/2008

Sandra called John Goodspeed (PH. 206-500-6410) concerning the progress of the loan. John stated that he had a loan offer of $50,000 for 360 months at 6% interest for us.

Sandra brought the returned check fees we have accumulated to Janelle Burns (PH. 503-238-3367.

After speaking with Janelle Burns, Sandra spoke with Dagny Hooke (503-238-3367), who said the best Washington Mutual /Chase Bank could do was $50,000 @ 6%, for 180 months. Sandra informed Dagny of John Goodspeed’s offer of an hour before. Dagny said she would research the discrepancy.

5:30PM. Dangy phoned our home phone number. She stated that the offer was now for 180 months and asked if we accepted or declined the offer. I stated that we would accept the 6% at 360 month offer that John Goodspeed had offered earlier in the day. She replied she could only take an acceptance or a decline on the 180-month offer.

12/05/2008

Sandra spoke with John Goodspeed. John stated that he was “mistaken” concerning the term he underwrote. The term offer is now 180 months. John also said that we would receive the offer in the mail on Monday or Tuesday (Dec. 8th or 9th) stating the terms of the offer. After a lengthy conversation, John said he would “try to help” us secure a longer term, but that if we did not agree to Washington Mutual/ Chase bank’s terms they would take our savings accounts and Certificates of Deposit we have with their organization, and send collections after us.


Hopeful conclusion:

We in good faith wish to settle our debts and have our accounts unlocked. This has gone on for more than a month, and Mutual/Chase Bank has continued to change the offer. We feel helpless against an institution this size. An organization with the ability to freeze our accounts until the mistakes are corrected.

We request that our accounts be unlocked so that we can pay our bills, maintain our good credit, and be responsible to our accounts.

We believe the easiest and best course of action would be to separate the HELOC from the other person's account for the amount borrowed. This could be attached to our accounts and we should be required to make the payments as outlined when we accepted the loan as stated by two separate Washington Mutual representatives (Tom Bushman and the Customer Service Rep.). This may need to become an unsecured loan, or it might need to be changed to a HELOAN. Regardless, we were told the loan was ours to use by two representatives of the bank, we used 1/5 of the loan, and we want to pay the loan back according to the original terms or those verbally offered to Sandra Anderson by John Goodspeed on December 04, 2008.