Here's How to Beat SLS if you Live in Michigan

I'm from Michigan- so this may not work for those of you in other states, but check into it.
When SLS tried to charge fees to close our HELOC that they'd bought from GMAC, we call the state's office of financial and insurance services, OFIS, (www.michigan.gov/ofis). We filed a complaint against SLS. They tried to explain why they were entitled to charge us "servicing" fees for a loan that had no balance and was frozen (as all HELOC's were) due to the mortgage crisis.

During the first few letters, which went through the OFIS, the SLS agent was arrogant. Speaking down to us as if we were deadbeats trying to get out of the money they were owed. In truth, I think they were shocked that we'd file a complaint over a nominal amount. However, we felt they were wrong for charging us arbitrary fees for services that were never provided. We also felt that contracts protect both parties - not just the lender. Finally, we felt the best way to prevent these abusive practices is to report them.

We held our ground and responded to each letter, still through the OFIS agent, by restating our position.
After a few letters and a couple of months, they gave in and closed the inactive HELOC without us paying a cent.

Here's where it gets really interesting- the OFIS looks at the practices of the agency with each complaint. If they determine a company is engaging in illegal/shady practices- they'll investigate. If they find there's a pattern of inappropriate behavior- they have the authority to pull that company's license.

So, one complaint can level the playing field for everyone!

Best of luck!