Consumer complaint received 2016-02-22
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: NJ
Product: Mortgage
Sub-product: Home equity loan or line of credit
Issue: Application, originator, mortgage broker

Complaint:
Problems with Home Equity Loan from Bank of America Closing Date - XXXX/XXXX/XXXX Line Amount - {$390000.00} When I first spoke with Loan Officer, I had asked to see if I can get an increased amount in my current loan. I was told that I should apply as the interest rates were better and I could get a better rate and possibly an increase in the loan amount. There was absolutely NO discussion that the entire type of loan would change. 
I wanted to ensure that nothing be taken out of the loan at closing, so I made sure all of my credit card had a XXXX balance at closing. 
On my old loan, the last Outstanding Variable balance was {$220000.00} based on my XX/XX/XXXX statement. 
On my new loan, at closing, the balance was {$220000.00}. When I questioned the person handling the closing, I was unable to get a clear answer from him why the balance was different. He clearly did not know. There was nothing to be charged against except for the {$450.00} early termination fee of the previous loan. 
On XXXX XXXX, XXXX there was a {$3000.00} deposit made into my checking account from my credit line. I did not make nor authorize this transaction. When I called the loan department, I was told it was a mistake and it would be credited back into my credit line. 
On XXXX XXXX, XXXX it was credited back. 
On XXXX XXXX, XXXX I noticed a {$450.00} debit made to my checking account for a Line Payment. I went back to the bank and asked what this was about. Once again, nobody could give me an answer and after them calling the loan department, found out that this was the early termination fee that was already charged on the closing date of the loan. I was told that I would be credited back that money plus {$53.00} in errors nobody could explain to me. 
On XXXX/XXXX/XXXX, {$450.00} was credited back to my checking account. 
On XXXX/XXXX/XXXX, {$43.00} was credited back to checking account - not the {$53.00} that they said would be. 
On XXXX XXXX, my first payment was due on this new loan. They automatically withdrew {$560.00} from my checking account for Interest Only which is the type of loan I have always had ( this is my third Bank of America Home Equity Loan ). 
I received my XX/XX/XXXX statement last week and noticed that on XXXX XXXX, they will be withdrawing {$900.00}. When I questioned this, I was told that I had agreed to a new loan that required both interest and principle to be paid monthly. 
Why would anyone in their right mind accept a loan that is giving them a XXXX point less in interest but requires double payment each month? Who would accept these terms? 
Second question - why was the XXXX payment in line with all the payments I had paid previously and then doubled on the second payment of the loan? 
Now, I will need to borrow against the loan in order to pay back both the principal monthly. This loan was taken to pay for college which I now have to borrow against to pay monthly as I ca n't afford to pay principal while I 'm still paying for college. As with my other loans, I expected to pay for the principal from the equity in my home once I sell my house. 
There have been problems with this loan since day one and I was clearly misrepresented and misinformed on the loan. 
After contacting the branch manager last week, she expedited this and got back to me about all the charges that they were unable to explain to me over the first couple of weeks with the loan. This is the least of the problems. The problem is the change in the loan and having to pay principal which they said was discussed which is clearly false. I would not have accepted those terms as they make no sense in order to pay for college which is what I need the money for.

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