Consumer complaint received 2018-02-18
Company: BARCLAYS BANK DELAWARE
State: NY
Product: Mortgage
Sub-product: Other type of mortgage
Issue: Struggling to pay mortgage

Complaint:
We want our last purchase of XXXX XXXX XXXX points costing {$140000.00} cancelled and refunded because we were victimized by XXXX sales agent XXXX XXXX. 

Purchase price {$140000.00} Down payment {$29000.00} Two Barclays cards were opened to pay down payment Loan balance as of XX/XX/XXXX {$100000.00} We were told to attend a meeting because of the changes XXXX XXXXXXXX XXXX was making described as new information and new opportunities. The information and opportunities described by XXXX XXXX were false and constitute white collar crime, financial institution fraud, fraud for profit, as defined by the FBI. 

We have learned through an advocacy group we joined XXXX XXXX earned {$1.00} to {$2.00} million a year in commissions at XXXX, and also someone inside XXXX reported to our advocacy group that XXXX XXXX is a financial XXXX. I have connected with another one of his victims, XXXX XXXX, XXXX, also sold by identical misrepresentations and fraud. I am in possession of a report of 42 XXXX XXXX XXXX complaints ( as of XX/XX/XXXX ). Upon checking into the background of XXXX XXXX, it appears he has opened several LLCs. I did not directly check his background, but due to the obvious fruaud, members are working with other members to expose what appears to be widespread corruption.It is rumored he is back in the XXXX XXXX, but there are complaints against three other XXXX XXXX XXXX sales agents and we talked to one of them when we were there. There names are XXXX, XXXX, and XXXX XXXX. An attorney who lives in XXXX XXXX, has been assisting XXXX victims as a volunteer because she was sold by deceit and bait and switch as well. She is now dedicated to assisting other victims. 

Fraud for profit as defined by the FBI matches exactly what happened to us. I have filed a complaint with XXXX and orally through the public access field office line : " Those who commit this type of mortgage fraud are often industry insiders using their specialized knowledge or authority to commit or facilitate the fraud. Current investigations and widespread reporting indicate a high percentage of mortgage fraud involves collusion by industry insiders, such as bank officers, appraisers, mortgage brokers, attorneys, loan originators, and other professionals engaged in the industry. Fraud for profit aims not to secure housing, but rather to misuse the mortgage lending process to steal cash and equity from lenders or homeowners. The FBI prioritizes fraud for profit cases. '' We owned enough points as we were already XXXX members with XXXX points, but XXXX XXXX presented a program in which XXXX would buy back our points from us or our heirs should a need to sell arise. According to XXXX XXXX, You wont get all your money back but you will get a big piece and your kids can sell back to XXXX. You can make some money on it. It sounded like it would be enough money to buy a house with the proceeds. He also told us how we could reduce our maintenance fees over ten years to nothing using points. He showed us on a piece of paper. XXXX XXXX said we had to purchase XXXX points to be eligible. The purchase price was {$140000.00}. 

According to the FBI agent I spoke with when reporting through their public access phone line, it is not legal for any company to hide behind fine print, allowing such obvious criminal activity. 

Account information XXXX we purchased XXXX XXXX XXXX applied to purchase at XXXX XXXX  XXXX we purchased XXXX XXXX XXXX XXXX XXXX points purchased Sales Agent XXXX XXXX XXXX XXXX at XXXX XXXX additional points purchased XXXX XXXX Purchase price {$100000.00} Sales agent : XXXX XXXX XXXX and bait and switch is not limited to the XXXX XXXX sales centers. 

At XXXX we were told to sign a paper. The agent said, Dont sign this yet because wherever you were last they have to hold that price. That price is way below what you would pay today! If you sign this paper you wont get that price. She also said we could not think about it overnight. The offer will expire with this members update, so we were not allowed to think it over. Management does want you to lose this offer because they wont want to honor it because the price is so low. 

A lawsuit has been filed by XXXX 's second highest producing agent, formerly working for XXXX in Hawaii at XXXX, detailing in a lawsuit she filed XX/XX/XXXX, the deceptive " price freeze '' Case XXXX filed in Hawaii XXXX XXXX Page 10 of complaint # 43 Owners Update is deceptive because it is to sell points.

# 44 Customer is told the current list price but the agent has to see someone else. 
# 48 the sales agent has customer sign a form indicating they were updated and the agent has to have the manager sign off.

# 49 the sales manager has reviewed all prior customer contracts and the manager falsely states the customer was given a price freeze but none exists.

# 50 ( In bold ) because of the price freeze only today can the customer buy for the discounted price.

# 51 ( In bold ) the price given is the real price planned from the outset.

# 52 the price freeze never existed because ( a ) The special deal available to this customer only is available to anyone and ( b ) Urgent to buy only for today # 54 this is lucky news for the customer brand new information!

# 55 the sales agent waits for the customer to step in There have also been many complaints of XXXX agents selling against each other from Hawaii and US because they are different point collections XXXX XXXX and XXXX XXXX, telling the member they should have not bought one or the other, depending on what side of the XXXX they are on. 

XX/XX/XXXX XX/XX/XXXX Sales agent XXXX XXXX XXXX XXXX said we should not have purchased XX/XX/XXXXpoints because it would be more difficult to book XXXX stays. 
XXXX XXXX points purchased Purchase price {$27000.00} Hawaii XX/XX/XXXX Purchase price {$16000.00} XXXXXX/XX/XXXX points Sales agent : XXXX XXXX We were told real estate was harder and harder to come by in Hawaii for XXXX. XXXX is going to start buying points so it made sense to buy Hawaii points because there would be a diminishing number of points available making an attractive investment. 

( There has also been a lawsuit filed Friday XX/XX/XXXX by a New York Class Action law firm and a Nevada law firm accusing XXXX of selling points as an investment, violating the Securities Act of 1933. ) My husband worked as an XXXX and is familiar with research procedures. 

At this point, before we met with XXXX XXXX, we owned a total of XXXX points ( XXXXXX/XX/XXXX and XXXX XXXXXX/XX/XXXX ) We were happy up to this points despite the fact that we were a victim of the deceptive price freeze outlined in XXXX XXXX lawsuit. 

All purchases up to this point have been paid in full. 

XX/XX/XXXX Sales agent XXXX XXXX at XXXX XXXX XXXX XXXX said we needed to attend an update because of XXXX XXXXXX/XX/XXXX. When I asked how we would find out about the new programs if we had not come to XXXX, XXXX XXXX said XXXX would send someone to our house. 

We were told we or our heirs could sell points back to XXXX if we bought XXXX additional points. You wont get all your money back but you will get a big piece and your kids can sell back to XXXX. You can make some money on it. It sounded like we could buy a house with the proceeds. He went on about how we could reduce our maintenance fees over ten year to nothing using points. He was showing us on a piece of paper. 

Purchase price {$140000.00} Down payment {$29000.00} Two Barclays cards were opened to pay down payment Loan balance as of XX/XX/XXXX {$100000.00} Note number XXXX The ability to sell back the points and no longer have maintenance fees! Sounded great! We were exhausted from being kept in a tiny room for 6 hours of high pressure. We discovered it was a lie ... we are in debt, our maintenance fees have doubled. 

At this time we are all paid up with XXXX on our other purchases. My husband talked to XXXX XXXX at XXXX XXXX ( VP director of sales ) about the lies perpetrated on us and the financial situation we are in now. She only replied to one email and mentioned claiming financial hardship but no response since. 
XXXX XXXX When I read the 42 XXXX XXXX reports and also a report of the number ofXX/XX/XXXX up-sells, it really sound like XXXX and their agents are victimizing their most loyal and satisfied customers in an effort to take back their points so they can start over with a new victim and get the initial purchase price again. 

There is no question the actions of the XXXX XXXX, XXXX sales agents, and Barclays, as Barclays is aware of the volume of complaints, and the criminal nature of the complaints, yet turns a blind eye.

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