Consumer complaint received 2022-02-15
Company: ZIONS BANCORPORATION
State: CA
Product: Mortgage
Sub-product: Other type of mortgage
Issue: Closing on a mortgage

Complaint:
I got a mortgage loan from California Bank and trust ( Address : XXXX XXXX XXXX XXXX, XXXX XXXX, CA. XXXX ) in XXXX of 2013 in the amount of {$420000.00} on my office building. The building was appraised at the time for about {$560000.00}. I am a XXXX and this building is my XXXX  office. There is no other tenant in the building. I arranged for monthly auto payments for this loan to be paid from a checking account I opened in the same bank. The monthly payments have been paid every single month with no delay. Not even one payment has been late or unpaid. 
I am an established XXXX  with solid financials. I have never been late or missed any payments on any other loan or mortgage. My financial condition has dramatically improved since I was approved for this loan back in 2013. My credit score in 2013 was below 700 and is XXXX now, which is considered exceptionally good. My income easily supports all my obligations, including the payments on the loan from this bank. 
Starting some 4 or 5 years ago the bank started asking for annual financial statements. I was very surprised about this and asked for the reason. They told me it is part of the loan, and it should be done. They did not provide any details. I followed their request and provided my tax returns, financial statements, and few other documents every year. They were also asking the building to be appraised. Again, I objected to this. I told them there is no need because the property values are increasing every year while the balance on my loan is decreasing. I told the person XXXX XXXX XXXX ) that I do not agree with appraisal and will not pay for it. They never informed me if any appraisal was done or not. Neither they ever sent me any statements for appraisal or legal fee. 
I recently I decided to refinance this loan, mainly because I was very unhappy about these annual requests. I was approved for new loan with XXXXXXXX XXXX and when they requested a payoff, the California Bank added {$8200.00} for legal and miscellaneous fees and over {$5000.00} for interest. I tried getting an explanation from XXXX XXXX who had provided the payoff. I was told he was on vacation for 2 weeks. They referred me to XXXX XXXX She basically told me she does not know the details of the loan. She said she has sent a message to XXXX XXXX to call me. I waited for 3 days and did not hear from XXXX. I called her several times and left messages for her, but she did not call me back. I emailed her several times but was not able to get a clear response. After about 4 or 5 days she finally answered my call and told me that my loan has been in default since years ago and the {$8200.00} is for legal fees related to default and appraisal fees. She did not explain what the {$5000.00} interest charge is. She did not have a clear explanation on why the bank considered my loan in default. 
I was never notified by California Bank that my loan is in default and why. I have been a responsible consumer with solid financial condition and excellent credit. all my payments have been paid without any delay. The building value has gone up every year and is worth now close to {>= $1,000,000} while the balance on my loan is down to {$330000.00}. What more assurances does a bank need about a loan? 
So far, I have not been able to get a clear accounting about these 2 charges, neither a clear explanation about the reason for default. About 5 days ago an attorney ( XXXX XXXX ) emailed me and said he is contacting me on behalf of California  bank. He said he is reviewing my documents and will write me back to explain the charges. This was another surprise to me. I felt the bank is trying to intimidate me. I explained to him that I did not believe the service of an attorney is needed and asked him if I would be charged for his attorney fees. He wrote back and said he does not know. So far, his tone has been intimidating, not helping. Right now it seems I have been blocked on any service about my account unless it is done through this attorney. 
I have been in a state of shock about this. This looks like a scam by a big bank to take advantage of an honest consumer. I desperately need help from your agency to fight this abuse.

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