Consumer complaint received 2016-12-19
Company: BMO HARRIS BANK NATIONAL ASSOCIATION
State: IL
Product: Consumer Loan
Sub-product: Installment loan
Issue: Managing the loan or lease

Complaint:
XXXX XXXX, XXXX Consumer Financial Protection Bureau Dear Complaint Department : In XXXX we took out a Line of Credit loan from BMO Harris Bank. In XXXX we learned by letter that our loan was coming due in full on XXXX XXXX, XXXX. We had no idea a Line of Credit loan matured with a balloon payment 15 years in the future. It was a Line of Credit! We always made our loan payment of approximately {$90.00} per month on time and never late. Around three years ago, we started increasing our monthly payment to {$150.00} per month. This allowed us to pay on the principle and pay off the loan quicker. 

When we were notified that the full balance of the Line of Credit was coming due XXXX XXXX, XXXX, we tried to refinance our home mortgage including this balance of {$40000.00}. But because of our financial hardship at the time, we could not qualify. 

I 'm a XXXX Veteran with a XXXX XXXX. Once again, we tried to refinance our home mortgage, and this time we qualified. We were also able to lock-in a very good interest rate before they recently increased. Everything was going great until BMO Harris indicated we were 252 days late on our Line of Credit balloon payment. Even though we were continuing to pay our monthly payments on time, we were trying to include BMO Harris as a Subordinate positon to our home mortgage and get this loan active again... they refused. See, they have already written off this Line of Credit loan. But because BMO Harris wants to play hardball, we are going to lose our lock-in and may not ever to be able to qualify for a loan again. The interest rates have already gone up since we locked-in this great rate. 

Our lock-in expires XXXX XXXX, XXXX. This means we must pay an additional {$300.00} to lock-in for two more weeks. BMO Harris is intentionally blocking our refinance opportunity knowing we are about to lose our lock-in. This after being loyal customers for over 40 years. I guess if you are meeting their expectations you are FAMILY, but once you fall out of place they treat you as if you have the plague. 

After making phone calls to BMO Harris ' Loss Mitigation department over several weeks, XXXX recommended providing them with a settlement letter. We could come up with {$10000.00} from a friendly legal outside source. I spoke with XXXX, the Team Leader through XXXX and XXXX has declined our {$10000.00} Settlement offer. XXXX requested {$24000.00} as a Settlement, but {$10000.00} is the maximum amount we could obtain. 

We do n't understand why BMO Harris would intentionally block an opportunity to receive our {$10000.00} Settlement offer, or get this {$40000.00} loan back on the books and let us pay our monthly payment again like we have for 15 years. 

We can extend our lock-in two more weeks, at an additional cost of {$300.00}, and then all hope is lost. Why is BMO Harris being like this? 

Please help us. 

Sincerely, XXXX & XXXX XXXX XXXX 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