Consumer complaint received 2023-10-16
Company: JPMORGAN CHASE & CO.
State: NY
Product: Debt collection
Sub-product: Mortgage debt
Issue: False statements or representation
Sub-issue: Attempted to collect wrong amount

Complaint:
COMPANY : XXXX XXXX XXXX XXXX XXXX XXXX XXXX Chase ) PRODUCT : XXXX XXXX XXXX Agreement and Disclosure ( Agreement ). Ex. 1 SECURITY : 582 shares of Co-op Stock and a Proprietary Lease ( Title ) SUMMARY : The Agreement guaranteed {$160000.00} of Credit for ten years and was a result of drawing the entire {$160000.00} Credit Line and electing a fully amortized Fixed Rate Loan Option ( FRLO ) on the {$160000.00} balance. This resulted in the creation of two distinct loan accounts : ( 1 ) a Primary HELOC and ( 2 ) a FRLO Sub-Account. Ex. 2.

Pursuant to Section VII 2 ( d ), any repayment of FRLO principal restores the HELOC available Credit by an equal amount. Thus, each party had a monthly performance obligation that was contingent upon the other partys performance. For example, Chase was not obligated to extend additional Credit unless I repaid a portion of the FRLO principal. Conversely, I was not obligated to make principal payments if Chase keeps the principal for its own use and benefit without providing me with additional Credit for use. 
To that end, nonperformance by either party constitutes a material breach of contract. 
Chase did not just breach the contract. Chase committed outright FRAUD and closed the {$160000.00} Credit Line. Ex. 3. Chase concealed the fraud by transferring the FRLO principal to a new account with a numerical sequence matching the closed HELOC. Ex. 4. Chase sent monthly statements that referred to the new account with the FRLO as a Home Equity Line of Credit with a limit of {$160000.00} and {$0.00} Credit available for use. Ex. 5. Chase even reported the new account to the Credit Bureaus as Revolving Credit with a limit of {$160000.00} and a balance greater than 95 % of the limit. Ex. 6.

At the time, my new business was making over {$100000.00} per month. Ex. 7. I planned to pay over 50 % of the FRLO principal and have {$100000.00} Credit available for use. This would have strengthened my personal XXXX XXXX. Chase made that impossible and destroyed my credit instead, causing my business to fail and ruining me financially. Ex. 8.

Although I was ruined financially, I never defaulted under the Agreement, so Chase had no right to force the repayment of the FRLO principal prio
r to maturity in 2027.

Instead, they used a completely fake loan number to try and collect the debt. Ex. 9. When that failed, they used the fake loan number to try and enforce the debt. Ex. 10. When that failed, they used the fake loan number to try and liquidate the collateral. Ex. 11. None of Chases collection, enforcement, or liquidation efforts were based on an existing loan account, and Chase never filed suit against me in any Court. They never accused me of having defaulted on the terms of the Agreement and never sought judicial confirmation of my default. Instead, Chase conspired with a Co-op Insider to steal my Title under the false pretenses of a real estate transaction. In particular, the Co-op Attorney/Transfer Agent paid Chase {$50000.00} for an occupied Unit with no Title. Ex. 12. Chase even instructed him to reference the fake loan number with his payment. Ex. 13. They both knew the Unit was occupied. Ex. 14. And they both knew that Chase lost the Collateral Stock and Lease ( i.e., Title ). Ex. 15.

All of this was revealed for the first time in discovery after the attorney commenced eviction proceedings against me in Housing Court. Ex. 16. He lost after a three-day bench trial. To this day, I am still without a Title to my Co-op Apartment even though I have never defaulted on the Agreement.

Any WaMu HELOC customer who exercised an amortizing Fixed Rate Loan Option and was assigned two loan accounts was similarly harmed by Chase 's mass cancellation, reduction, and suspension of WaMu HELOCs.

Company response to consumer: Closed with explanation