Consumer complaint received 2023-06-19
Company: REGIONS FINANCIAL CORPORATION
State: FL
Product: Mortgage
Sub-product: Home equity loan or line of credit (HELOC)
Issue: Struggling to pay mortgage

Complaint:
Vile Regions Bank Home Equity Variable Interest Rate Loan PREDATORY UPON A SENIOR CITIZEN WITH A FIXED INCOME [ 1 ] Regions bank provided me with a fixed interest rate mortgage loan initially. ( XXXX or XXXX ) [ 2 ] Regions bank then destroyed the fixed interest rate mortgage loan on the pretense that a variable interest rate would be lower and would provide me with more money. ( XXXX ) [ 3 ] XXXX, the home equity lender, ( XXXX, Florida, Regions ) said my monthly payments would be lower. I relied on her word and trusted her. 
[ 4 ] XXXX did not give me a copy of the paperwork for the new improved loan. She said she would keep it in her desk for safekeeping. Two weeks later, XXXX was no longer employed at that Regions bank. 
[ 5 ] XXXX also found a friend of hers in the City of XXXX, as I recall, to put insurance on my house. XXXX said that the insurance payments to her friends company would be on auto pay. 
[ 6 ] I was later to learn that the payments were not on autopay. When I called Regions bank to ask the name of the insurer ( e.g., the friend of XXXX ), no one seemed to know. They said they no longer had that original paperwork ( which I never got a copy of ). 
[ 7 ] During COVID, this better loan that XXXX talked me into grew, grew, and grew in monthly payments. It is now unaffordable, and I never knew this would happen to me. I was nave and XXXX took advantage of my lack of knowledge. 
[ 8 ] Today ( XX/XX/XXXX ), I found out something even more horrific about this horrible, variable interest rate loan that is killing me. I found out that the exorbitant costly insurance forced upon me has a {$9300.00} wind deductible for roof damage. I can not tell you how stunned I am. 
[ 9 ] About a year ago, I called XXXX at Regions Bank ( downtown XXXX, Missouri ). His solution was for me to cancel the variable interest rate loan and start all over with ANOTHER loan, more money, with another 15 years on my head. This is NOT a solution. It is simply a way to saddle me with endless debt. 
[ 10 ] Another Regions Bank employee ( XXXX, Florida ), when made aware of this horrific loan on my head said, Well, who could have predicted that interest rates would go up so much? 
This rhetorical question is not an apology and it does not solve the financial damage being done to me. 
[ 11 ] No employee at Regions Bank should have ever talked a XXXX-year-old woman into a VARIABLE interest rate loan. That was unfair and predatory. 
So, thats when I decided to look up the definition of predatory lending, here : The loan Regions gave me matches the definition : XXXX XXXX XXXX And here is more proof that I have been saddled with a predatory loan from Regions Bank , with predatory loan practices. 
Predatory Lending : How to Avoid, Examples and Protections By XXXX XXXX Updated XX/XX/XXXX Reviewed by XXXX XXXX What Is Predatory Lending? 
Predatory lending typically means imposing unfair, deceptive, or abusive loan terms on borrowers. In many cases, these loans carry high fees and interest rates, strip the borrower of equity, or place a creditworthy borrower in a lower credit-rated ( and more expensive ) loan, all to the lender 's benefit. 
Predatory lenders often use aggressive sales tactics and exploit borrowers lack of understanding of financial transactions. Through deceptive or fraudulent actions and a lack of transparency, they entice, induce, and assist a borrower in taking out a loan they will not reasonably be able to pay back. 
KEY TAKEAWAYS Predatory lending is any lending practice that imposes unfair and abusive loan terms on borrowers. 
Some aspects of predatory lending include high-interest rates, high fees, and terms that strip the borrower of equity. 
The economic impact of COVID-19 gave way for cash-strapped consumers to become vulnerable to predatory loans.1 Predatory lending disproportionately affects women, XXXX, and XXXX communities. 
Predatory lending often occurs in conjunction with home mortgages. 
How Predatory Lending Works Predatory lending includes any unscrupulous practices carried out by lenders to entice, induce, mislead, and assist borrowers toward taking out loans they are unable to pay back reasonably or must pay back at a cost that is extremely above the market rate. Predatory lenders take advantage of borrowers ' circumstances or lack of knowledge. 
Predatory lending puts many borrowers at risk, but it especially targets those with few credit options or who are vulnerable in other wayspeople whose inadequate income leads to regular and urgent needs for cash to make ends meet, those with low credit scores, those with less access to education, or those subject to discriminatory lending practices because of their race, ethnicity, age, or disability. 
Predatory Lending Tactics to Watch Out for Predatory lending is designed, above all, to benefit the lender. It ignores or hinders the borrowers ability to repay a debt. Lending tactics are often deceptive and attempt to take advantage of a borrowers lack of understanding of financial terms and the rules surrounding loans. These tactics can include those identified by the Federal Deposit Insurance Corporation ( FDIC ), along with several others : Excessive and abusive fees : These are often disguised or downplayed because they are not included in a loan 's interest rate. According to the FDIC, fees totaling more than 5 % of the loan amount are not uncommon. Excessive prepayment penalties are another example.2 Loan flipping : The lender pressures a borrower to refinance, again and again, generating fees and points for the lender each time. As a result, a borrower can end up trapped by an escalating debt burden.2 Asset-based lending and equity stripping : The lender grants a loan based on your asset, say a home or a car, rather than on your ability to repay the loan. You risk losing your home or car when you fall behind on payments.2 Equity-rich, cash-poor older adults on fixed incomes may be targeted with loans ( say, for a house repair ) that they will have difficulty repaying and that will jeopardize their equity in their home. 

Predatory Lenders typically target vulnerable populations, such as those struggling to meet monthly expenses ; people who have recently lost their jobs ; and those who are denied access to a wider range of credit options for illegal reasons, such as discrimination based on a lack of education or older age. 
What Is an Example of Predatory Lending?

Whenever a lender seeks to take advantage of a borrower and tie them into unfair or unmanageable loan terms, it can be considered predatory lending. Telling signs of a predatory lender include aggressive solicitations, excessive borrowing costs, high prepayment penalties, big balloon payments, and being encouraged to consistently flip loans. 
Is Predatory Lending a Crime? 
In theory, yes. If you are enticed and misled into taking out a loan that carries higher fees than your risk profile warrants or that you are unlikely to be able to pay back, you have potentially been the victim of a crime. There are laws in place to protect consumers against predatory lending, though plenty of lenders continue to get away with it, partly because consumers dont know their rights.

Can I Sue for Predatory Lending?

If you can prove that your lender violated local or federal laws, including the Truth in Lending Act ( TILA ), you may want to consider filing a lawsuit. Its never easy going against a wealthy financial institution. However, if you have proof that this lender broke rules, you have a reasonable chance of being compensated. As a first step, contact your state consumer protection agency. 
The Bottom Line Predatory lending is any lending practice that imposes unfair and abusive loan terms on borrowers, including high-interest rates, high fees, and terms that strip the borrower of equity. Predatory lenders often use aggressive sales tactics and deception to get borrowers to take out loans they can't afford. And in many cases, predatory lenders have targeted vulnerable populations. 
Predatory lenders aren't all loan sharks. A great deal of predatory lending is carried out by more established institutions such as banks, finance companies, mortgage brokers, attorneys, or real estate contractors. The subprime mortgage boom in the years leading up to XXXX was, arguably, an example of predatory lending.26 This above article was quite the eye opener for me, and it let me know that I am the victim of a predatory loan from Regions Bank . 
XXXX at Regions bank -- Most everything she promised me turned out to not be true, including that the insurance person she found for me would be paid automatically every three months. Regions has instead placed the highest insurance on me in addition to the fluctuating ever rising 10-years-more payments. The insurance they selected is a train wreck for me with a {$9300.00} deductible. 
Here is another relevant article. 
XXXX XXXX  XXXX What is the Regions Bank controversy ? 
Customer fraud In XXXX, Regions paid {$200.00} XXXX to settle with the U.S. Securities and Exchange Commission over mispricing risky mortgage-backed bonds in its conservative mutual funds in its Morgan Keegan subsidiary . 

https : XXXX Why is fixed better than variable? 
The main advantage of a fixed rate home loan is certainty. You can lock in or 'fix ' your interest rate for a certain period of time typically between one and five years and plan for the future, knowing that your repayments will stay the same during that time. 

SOLUTIONS : *I WANT A LOWER DEDUCTIBLE ON THE HORRIBLE INSURANCE POLICY CREATED BY REGIONS TO BENEFIT ONLY REGIONS BANK WHO HAS TAKEN EXTREME ADVANTAGE OF ME, A SENIOR CITIZEN, AS APPLIED TO THE CURRENT CLAIM. 
*I WANT REGIONS TO PAY THE DEDUCTIBLE ON THE CURRENT ROOF DAMAGE CLAIM. 
*I WANT THE LOAN TO GO BACK TO WHAT IT WAS, FIXED, WITHOUT GIVING ME MORE MONEY AND WITHOUT MAKING ME RESPONSIBLE FOR ANOTHER 15 YEARS OF DEBT UNTIL I AM XXXX YEARS OLD. That is a predatory solution suggested by Regions Bank. 
BEST SOLUTION : I WANT THE LOAN COMPLETELY TERMINATED FOR FRAUD COMMITTED UPON ME. IN FIVE PLUS YEARS TIME, THEY ALREADY GOT SO MUCH MONEY OUT OF ME. 
I CANT EVEN AFFORD TO FIX MY ROOF, THANKS TO REGIONS BANK. I CANT EVEN AFFORD ANYTHING, THANKS TO REGIONS BANK. 
Sincerely, XXXX  XXXX XXXX XXXX XXXX XXXX XXXX. XXXX XXXX XXXX, Florida XXXX ( XXXX ) XXXX XX/XX/XXXX XXXX

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation