Consumer complaint received 2024-12-02 00:00:00
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Struggling to pay mortgage — Foreclosure
Company: FIRST NATIONAL BANK OF OMAHA
State: CO

Complaint narrative:
To all parties of interest Among the Colorado Attorney General, CFPD and CFPB I am writing to request your assistance, guidance, intervention, support, and/ or any resources available to aid in resolving commercial consumer lending conflicts that have ensued with FNBO pertaining to an SBA business loan and XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, pertaining to an agreement for the purchase of future receivables. Where both of these organizations performed many acts of deception, bad faith, breach, and potentially civil theft. Additionally, and if applicable, the commercial consumer bad faith of XXXX XXXX XXXX company along with multiple acts of fraud, deception, perjury, forgery, breach, malicious litigation, and potentially extortion that were performed throughout several partner disputes. These complex and unfortunate matters have collectively endangered my well-being and have placed me at imminent risk of homelessness and financial ruin. My home is being forced into foreclosure by FNBO with a foreclosure sale date scheduled for XX/XX/XXXX. I am knocking on your door, having exhausted all available resources, including consulting with attorneys and seeking assistance from various organizations. I believe these matters fall within your jurisdiction and I am hopeful you can offer your support to ensure these matters are being handled ethically and equitably. I have been approved for limited-scope legal consultation with XXXX XXXX and XXXX  XXXX services through XXXX  XXXX XXXX and XXXX XXXX XXXX. 
I have spoken with XXXX XXXX, XXXX XXXX Director of Foreclosure Defense. XXXX advised me to seek to file an error, omissions, and lost mitigation complaint with the Consumer Financial Protection Bureau ( CFPB ). I have submitted a complaint but have yet to receive a response. This has prompted me to seek your assistance. I have also spoken with attorney XXXX XXXX, who enlisted himself to assist me with XXXX XXXX through XXXX XXXX XXXX should I need to. Both of these gentlemen have educated me and guided me within the reach of their scopes thus far. I have CC 'd both of these gentlemen simply to keep them in the loop so they may remain informed. Should either of them need to confer with your organization. 
All of the claims I have made can be substantiated and verified. They have been meticulously documented in numerous audio recordings, written correspondence, loan documents, contracts, and agreements. I have provided a detailed narrative of the events that have transpired since XX/XX/XXXX, which have put me at imminent risk of homelessness and financial ruin. 

XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  XXXX located at XXXX XXXX XXXX, XXXX, XXXX XXXX, since XXXX XXXX XXXXXXXX. I operated XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  XXXX Unfortunately, I was compelled to cease operations on XX/XX/XXXX due to the financial harm incurred through existing partner disputes, necessitating a reliance on XXXX for temporary bridge funding in XXXX of XXXX. Followed by a breakdown of my hot water heating system on XX/XX/XXXX, ceasing operations on that dayXXXX XXXX XXXXXXXX XXXX did not pay this covered loss in bad faith. Then ultimately FNBO committed several acts of deception, offering unauthorized terms for the SBA I originally guaranteed and secured on XX/XX/XXXX in the amount of {$180000.00}, forcing me to default for reasons not related to failure of payment. Then finally, the sale of my home, with no consideration of any other options, resolutions, or cure. 
XXXX appropriated unauthorized remittances intended for future receivables in response to the failure of my hot water system on XX/XX/XXXX. This resulted in a depleted cash reserve, including payments to the XXXX XXXX  XXXX and the XXXX XXXX XXXX for sales and property taxes, leading to delinquent tax accounts. Additionally, the funds reserved for my employees payroll were also affected. On XX/XX/XXXX, XXXX sent my operating account negative after multiple pleas for them to cease their ACH attempts in the absence of generating sales. These occurrences are all breaches of our agreement according to the contract documents. 
XXXX is now actively pursuing a default judgment against me in California despite numerous attempts to communicate with them. During these communications, I have consistently provided evidence of the contractual language that irrefutably establishes their bad faith and multiple breaches. Furthermore, XXXX XXXX was dissolved prior to XXXX filing their claims. The dissolution clearly cures XXXX XXXX from default, according to the contract language. 
On XX/XX/XXXX, FNBO amended the original XXXX loan offering 6 months of interest-only payments and gave me a new 60-month term and stated I could retain a percentage of the sale of my home should I choose to sell it and utilize the equity to pay down a large percentage of the principal and use the remaining proceeds to resume business operations and correct the fallout that was occurring. 
On XX/XX/XXXX, I met with FNBO to follow up on the outstanding business issues and discuss them in detail. I received a check from XXXX for {$17000.00} for equipment purchases, which required a co-signature from FNBO. My home was under contract and nearing its close. During the meeting, FNBO informed me that they would now take 100 % of the sale proceeds of my home because the business had been under-performing. However, the situation had improved significantly on XX/XX/XXXX, as we had secured funds and were receiving money from the sale that I had pledged {$80000.00} to the principal of {$160000.00} with 58 months remaining on the term. FNBO stated that I could write up an expense report, but there was no guarantee that I could recover any of the money from the sale. I expressed my disappointment and reliance on our previous agreement and the funds from the sale to move forward. Without these resources, I would not be able to proceed. 
I then informed FNBO that I should not accept the {$17000.00} check because without the proceeds from selling my home, I would not have the necessary operating capital to pay rent, property taxes, XXXX XXXX XXXX XXXX XXXX Without correcting my DTI and creditworthiness, I would not be able to continue doing business. XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, and my revolving credit was maxed and imbalanced. The only way to rectify this situation was through good faith from XXXX or the sale of my home ; otherwise, bankruptcy was imminent. 
I was transparent and informed FNBO that I would need to borrow XXXX XXXX XXXX XXXX XXXX with approximately {$9000.00} of the {$17000.00} to cover XXXX rent and {$4500.00} in unpaid property taxes. Knowing all this information, FNBO agreed to sign the check, release the funds, and allow me to provide them with receipts XXXX XXXX XXXX XXXX XXXX FNBO granted me permission to use the funds temporarily to cover expenses. 
First National Bank of Omaha ( FNBO ) repeatedly emphasized that as long as I continued to make loan payments, I was not obligated to sell my home. XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  FNBO subsequently requested that I provide a cost report and urged me to minimize my expenses. They would then contact the Small Business Administration ( SBA ) to ascertain whether they could authorize the release of funds from the sale of my home. However, this was not a guarantee, and it would take approximately one week for FNBO to receive a response. 
My expenses were due two days after our meeting, and my home was scheduled to close on XX/XX/XXXX. FNBO co-signed the check, making the {$17000.00} available to me. {$10000.00} of these funds were applied to the outstanding balance of a personal credit line I had on FNBOs credit card. I utilized these funds to reduce my debt-to-income ratio ( DTI ) and enable me to purchase the necessary equipment and make the required repairs that were allocated for once I resumed operations. The remaining {$7600.00} was allocated to cover outstanding expenses, equipment repairs, moving costs, and storage expenses. 
Regrettably, I had a partnership in the works and made every effort to restructure my entity to reflect this partnership appropriately. However, FNBO denied this opportunity on XX/XX/XXXX. FNBO informed me that a 100 % sole proprietor S-corp could not be modified, or they would forfeit their guarantee with the SBA. They also declined to consider refinancing the loan with my partners financial support without reviewing his personal financial statement ( PFS ), assessing his creditworthiness, or engaging in a conversation with anyone in underwriting or the SBA. The loan documents do not explicitly state that entity changes are not permitted ; they merely require an approved written request. 
Initially, FNBO presented several options but subsequently rejected each one. Consequently, I found myself with no alternative but to attempt to mitigate the potential consequences with the property owner of the commercial space I was leasing, where I also had a personal guarantee with nine years of leasing rights valued at approximately {$550000.00}. FNBO essentially demanded that I deceive the property owner and proceed without any guaranteed financial support. This entire situation was highly unethical, and I could not bear the thought of concealing these truths from all parties involved. 
During a subsequent conversation with the property owner, I was able to reach a resolution that relieved my personal guarantee by assisting in locating a qualified operator who desired to establish their own leasing terms with the property owner to secure the rents I had guaranteed. This was a consideration that had been discussed with the property owners since XX/XX/XXXX. The location is highly desirable, and numerous interested operators had contacted both me and the property owners during this extended period of downtime to negotiate leasing terms. I had also exhausted all options for a partnership with these parties or a sale, if that had been an option. 
On XX/XX/XXXX, an interested party committed to a partnership and pledged {$30000.00} in cash to initiate operations. I conveyed this information to FNBO, requesting a restructuring of the entity to reflect this new ownership interest. However, FNBO declined this option, citing potential loss of the SBA guarantee. They also stated that they would not consider refinancing the loan with new ownership interests and were unwilling to continue their business with me. 
We subsequently discussed the status of my home sale and the costs report required for SBA consideration to alleviate some of the lien on my home. FNBO advised me to pursue financing through another bank, which was also an option available to me. Despite my efforts, FNBO appeared unwilling to offer a viable path forward, making it challenging for my business to continue. 
On XX/XX/XXXX, I notified First National Bank of Omaha ( FNBO ) that I had vacated the commercial space and secured the assets. 
On XX/XX/XXXX, XXXX XXXX, FNBOs director of commercial lending, abruptly suspended my business accounts without prior notice or communication. Notably, my loan payments were current at the time. There was no indication of default or any suggestion that the loan was in any way delinquent. 
On XX/XX/XXXX, FNBO met with me at the storage facility to confirm the location of the assets. FNBO subsequently advised me to sell my home, after which they would grant me time to sell the assets as close to market value as possible. I reiterated my intention to repay the loan in accordance with the agreed-upon terms and clarified that the loan was not in default or delinquent. 
XXXX XXXXXXXX XXXX initiated an Automated Clearing House ( ACH ) payment of {$15000.00} to XXXXXXXX XXXX FNBO business checking account ending in XXXX for lost business income. FNBO did not require my signature for the lost business income, as they had no liens on my income or any orders for garnishment. However, FNBO diverted those funds, along with the {$10000.00} I had paid to FNBOs credit card ( CC ) account without my knowledge. Notably, FNBO did not provide any notice of this action. Consequently, my XXXX XXXX accounts became negative due to the recalled funds without my knowledge. This action severely damaged my creditworthiness, rendering me unable to pay for or manage my business and living expenses. As a result, I am currently experiencing dire circumstances and am urgently seeking to avoid homelessness. 
On XX/XX/XXXX, I transmitted a written intent to repay my loan to FNBO via email to the director of commercial lending. 
On XX/XX/XXXX, FNBO dispatched a demand letter demanding full payment. I then began correspondence with XXXX XXXX of FNBO. 
I reported all of these facts to XXXX XXXX, also informing her I had the audio recordings and correspondence to establish the unethical nature of these circumstances. XXXX did not care to evaluate the legitimacy of my allegations and proceeded to bully me and financially cripple me to submit to her course of action. She ultimately took possession of the business assets, liquidated them, and has provided no documentation regarding the sale of the equipment since. 
I am in desperate need of support or any sort of intervention you may be able to offer urgently. Please feel free to contact me directly via phone, text or email at your soonest convenience. I will pause my calendar to accommodate any availability the Attorney General, XXXX, of CFPB has to speak and or meet with me.. Thank you for your valued time and consideration. It is genuinely appreciated. I have volumes of additional documentation and correspondence that I am able to provide with the ability to share a file exceeding XXXX XXXX 






With XXXX, XXXX XXXX XXXX : XXXX Email : 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