Consumer complaint received 2017-10-10
Company: ZIONS BANCORPORATION
State: CO
Product: Debt collection
Sub-product: Other debt
Issue: Took or threatened to take negative or legal action
Sub-issue: Sued you without properly notifying you of lawsuit

Complaint:
I would like to lodge a complaint and request a formal inquiry into the lending practices for XXXX Bank and specifically XXXX of its XXXX here in XXXX Colorado, XXXX XXXX. 

I am a XXXX who owes a private XXXX XXXX that opened in XXXX. I applied for a line of credit with XXXX Bank around XXXX of XXXX for my expanding XXXX  XXXX. We were in the process of building a new office and starting a new dermatology group. I needed the money for cash flow during the transition. This information was discussed up front and in great clarity when we applied for the line of credit. 

After the application and underwriting process, a line of credit for {$150000.00} was approved XXXX of XXXX while the office was being constructed. In XXXX of XXXX the space was finished and we moved into the new building. We used the line of credit to cover some of the expansion expenses. Less than 60 days afterwards XXXX requested that I pay back the entire note. The main ( and clearly stated ) reason that I applied for the line was because I knew my business would have a cash flow shortage while the building was stabilized and the new dermatology practice grew. I had no cash to pay back the note in full. 

I tried to negotiate with the bank to simply make the line non active and allow me time to pay it off. I requested minimum payments of interest only until we had better cash flow. The bank demanded that I sign documents that forced me to pay the note back at an accelerated schedule at a cost of {$3500.00} a month for 48 months. I was shocked that they called the note and communicated that my expectation after conversations with my loan XXXX was a minimum of 12 months with interest only. I was not aware they would or even could term the line out less than 60 days after the money was used. I informed them that could not afford that much with the current cash flow situation and requested a $ XXXX payment. The bank sent over documents with the $ XXXX payments and tried to force me to sign them despite the fact that I did not have XXXX hours to review them. 

When I did not immediately sign and return the documents in XXXX hours the bank put the note in default and sent me into their collections. At this point in time I started to deal with XXXX XXXX XXXX directly although I suspect he had had multiple conversations with my loan office prior to these encounters. Even though I had been paying the {$3500.00} a month on time, every month, XXXX XXXX saw it fit to start bullying and trying to intimidate me. He sat in my office and asked me, how I sleep at night. He stated with no uncertain terms in email correspondence that the bank wanted no relationship with me and wanted to get me off their books. With the threat of higher fees, continued litigation and collections, XXXX XXXX forced me into signing and even more accelerated schedule where I would continue to pay the {$3500.00} but instead of having 48 months to pay it off, he would only offer an extension for the next 12 months. 

Afterwards XXXX XXXX had me sending payment directly to his office and then I would have to spend hours on the phone with XXXX until the payments were applied in a timely manner. I had to started copying XXXX XXXX superior in emails due both the intimidation directly from him and the unscrupulous nature of having to send payment directly to him. After several emails, I was able to use another address to send in payments after which all have been applied correctly. 

During the following months I offered repeated incentive to try and get my new building rented out to improve our cash flow. I also worked diligently with my new dermatologist to improve her practice, again to try and create more cash flow. Originally, I had a verbal agreement with my construction lender to refinance and consolidate all of the companies outstanding debt ( including XXXX 's ). However, in XXXX of XXXX my construction lender was purchased by a larger bank and I was told that we would not be able to proceed with a consolidation loan until the last 25 % of the building was rented out. Unfortunately, we have not able to rent out the remaining space despite increasing incentives to the brokers and tenants. This information has been directly shared with XXXX XXXX and XXXX Bank. My office also ran into some significant insurance billing and collections issues which almost stopped our cash flow and has required XXXX different billing companies to get back track. Our current A/R is over {>= $1,000,000} and we are desperately trying to collect those monies owed. Complicating the situation further, I have been dragged through an almost three-year divorce which was finalized approximately 30 days ago. The other party in the matter brought my XXXX XXXX down from XXXX to XXXX. With that XXXX XXXX there was no way for me refinance the debt during this time. Despite these issues, I have continued to work with my original lender for the building but have not been able to get a consolidation loan approved. I have brought my XXXX XXXX back to XXXX in the weeks following the divorce and sought several other lenders but have not yet been able to get an approval. 

Despite the onerous amount that I have been requested to pay, I have not been late on any payments. I have clearly stated my situation to XXXX XXXX and XXXX bank as well as my intent to continue to pay that amount every month until the note if fully paid or I am able to obtain new lending and can pay the note even sooner. The bank is now harassing me with a law suit in the form of a complaint and civil case filed in XXXX court on XXXX XXXX, XXXX. They are threatening me by running up their legal fees which the bank made clear in their court filings are going to push on to me and are asking the court to rack up additional interest. My position was made very clear to XXXX as my application clearly states this is for expansion of a XXXX medical practice and there should have been no reasonable expectation to be able to collect that money less than 60 days after it was used. 

I do not know if XXXX XXXX intent is to try and legally steal my practice, collect fees and higher interest for the bank or if he is merely an incredibly nasty human being who gets some type of sick enjoyment out of tearing holes into other peoples lives. I have never presented anything to XXXX other than my willingness to try and pay the note. I have been on time with every payment and stuck to their ridiculous repayment schedule. There is no reasonable person who would have expected to have to pay back a line of credit in full with 60 days of using it. I acted in good conscious and the bank was well informed during the both the application and review processes of my businesses financial situation.

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