Consumer complaint received 2016-06-28
Company: PNC Bank N.A.
State: MO
Product: Mortgage
Sub-product: Other mortgage
Issue: Settlement process and costs

Complaint:
In XXXX I opened up a line of credit with PNC Bank in the amount of {$50000.00}. In XXXX, PNC bank decided to force me to close out my line of credit and that I had to pay off the loan balance otherwise they would foreclose my collateral real estate holding. My credit was not very good since I just got out of a bad business where I was using the line of credit to operate a failing business. PNC bank knew I was in trouble with my business and they will no longer wanted to keep the line of credit opened. I told them that I only had another six to twelve months on a fraud legal case and that if I settle I could pay off the line of credit. I asked them to leave the line of credit as current as I was willing to pay the interests and some principle until the court case is either settle or complete. However, PNC bank insisted that I must move it to a mortgage type loan and that they would charge me pre-payment penalty if I did settle with the other party and payoff the loan before mature date XXXX/XXXX/XXXX. I told them that I did not want to open a new loan with pre-payment penalty knowing that I would have the funds to pay off the loan once I settle with the court case. However, PNC bank said that if I did not have the funds to pay off the line of credit that I would lose my Real Estate collateral and that I must apply for the new loan and pay the pre payment penalty. I had a very lengthy discussion with the loan officer at PNC bank about the new loan PNC wanted me to do. Therefore, PNC Bank had not really giving me any choice but to sign the line of credit into a loan with pre payment penalty. 
On XXXX XXXX, XXXX, I was able to pay the loan off with the settlement money. I paid {$38000.00} leaving a balance of around {$3000.00} to pay off. PNC bank was still enforcing me to pay the pre-payment penalty after I told them that I was not employed and money was tight. 
On XXXX XXXX, XXXX, I was working with XXXX XXXX an executive Client Relations Specialist to try and help me with my situation. I asked her if they could eliminate or reduce the pre-payment penalty and that I could pay off the loan completely since I currently do not have a job and money is very tight. She said there was nothing she could do to remove or reduce the pre-payment penalty. 
On XXXX XXXX, XXXX, they have send me a letter demanding that I pay them the pre-payment penalty otherwise they will either foreclose on the collateral or place a lien on the property. 
I believed that PNC bank knew my situation and basically forced me into moving the line of credit into a loan that has pre-payment penalty knowing that I would settle my court case to pay off the loan or if I did not settle, they would foreclose on the property. I believe this is unfair since they also knew that I was financially in trouble and my credit was not very good to get a standard loan to payoff my line of credit. They knew I was cornered and that I had no choice but to get into a loan where they forced me to pay the pre-payment penalty.

Company response to consumer: Closed with explanation