Consumer complaint received 2024-05-06 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — Foreclosure
Company: AMERIS BANCORP
State: FL

Complaint narrative:
Re : Formal Complaint Against Ameris Bank for Violating Truth in Lending Act ( TILA ) and Predatory Lending Practices Dear Consumer Financial Protection Bureau, We are writing to file a formal complaint against Ameris Bank for engaging in predatory lending practices that violate the Truth in Lending Act ( TILA ) pursuant to 15 U.S.C. Chapter 41, Consumer Credit Protection. We believe that our experience with Ameris Bank constitutes a clear breach of consumer protection laws and warrants investigation and action. 
We obtained a one-time close construction-to-permanent 31-year loan from Ameris Bank for the construction of our new home . The terms of the loan were explained to me by my loan officer who assured me that my 4 % interest rate would be locked, and we would have the option to modify to a lower rate after construction or keep my initial construction phase rate. We closed on the loan on XX/XX/2021, with the understanding that we would make interest-only payments for the first 12-months, followed by full mortgage payments thereafter. 
However, despite being current on my mortgage payments and following the terms outlined in my mortgage documents, Ameris Bank forced us to refinance the loan to avoid foreclosure. The bank claimed default due to delays in construction caused by factors beyond our control, such as labor and supply shortages exacerbated by the COVID-19 pandemic. This forced refinance resulted in significant financial loss for us, as we were forced to accept a much higher interest rate of 7.5 % with another lender and pay closing fees. 
Furthermore, Ameris Bank failed to disclose essential information about the risks associated with construction loans, including potential delays and the possibility of additional fees for extensions. Other banks, such as XXXX XXXX, offered free extensions for construction-permanent loans, while Ameris Bank XXXX XXXX impose egregious fees ( .5 % of loan amount per month ) for a 6-month extension followed by a full refinance for 30-year mortgage portion to a market rate, paying closing costs, essentially, treating it as a 2-time closing loan. 
Despite our builder 's pleas and our attorney 's attempts to resolve the situation and provide evidence of our compliance with the loan terms, our consistent payment history of full mortgage payments as agreed to in the mortgage note, Ameris Bank proceeded with threatening foreclosure, disregarding the fact that we were ahead on payments according to our mortgage documents and amortization schedule. 
Moreover, Ameris Bank made misleading statements regarding the terms of our loan, including falsely claiming that our interest rate was no longer locked and attempting to impose penalties and fees not specified in the loan agreement. 
We believe that Ameris Bank 's actions constitute predatory lending practices and violate the Truth in Lending Act, which aims to protect consumers from unfair and deceptive lending practices. We respectfully request that Consumer Financial Protection Bureau investigate this matter and take appropriate action to hold Ameris Bank accountable for its actions. 
Enclosed with this letter are copies of relevant documents, including loan agreements, correspondence with the bank, and communication with our attorney, to support our complaint.

Thank you for your attention to this matter. We look forward to a prompt resolution and justice for us and other consumers whove suffered financially due to illegal tactics by Ameris Bank. We request compensation for escalated cost of the loan from 4 % to 7.5 % over 30-year term, our attorney fees, and closing costs.

Company response to consumer: Closed with explanation