My building, Lustra LLC had a 5 year commercial loan of $1, 500, 000 with Suntrust Bank which matured in December 2009 with balance of $1, 349, 616. I maintained my payments in the past even under extreme financial hardship where my building was vacant for over a year in 2008. Since February 2009, the building was 75% occupied and 100% occupied by December 2009. I have all documentation supporting my ability to maintain monthly payments, yet I'm facing foreclosure because I cannot meet my lender's loan extension requirements.
Initially the bank offered me only a 6-month extension so I proposed to decrease my loan balance by $200, 000; the money would come from a private loan. When I finally received a loan restructuring offer on 2/23/2010, It was far from fair and it was much too late to get financing anywhere else: the loan would be extended only to December 2010 (just for another 9 months) and other terms were even more difficult to accept:
1) A $200, 000 principal payment was required at closing.
2) An additional $200, 000 paydown was required on or before 8/31/2010.
3) A $100, 000 escrow was to be posted to mitigate any potential judgment.
4) A $200, 000 prinicpal paydown was expected by 1/30/2010.
5) Additional fees included a $10, 000 loan renewal fee, $1, 900 appraisal, bank attorney's fees, survey & building plans, most likely adding to well over $20, 000
After discussing these terms with Suntrust, the offer was slightly modified two days later: The loan was to be extended for another 6 months, to June, 2011 (just for 1 year & 3 months), but the option to extend it for additional 6 months was cancelled, the $200, 000 payment due Nov, 2010 was dropped and the loan renewal fee increased from $10, 000 to $15, 000.
My complaint against Suntrust Bank is based on Suntrust fraudulent & dishonest business practices, unfair treatment and acting against public interest (unless it is in public interest to have more foreclosures). Our modern society cannot function without banks, not banks acting like ruthless extortionists, but ones which provide services to the public and our economy. Unfortunately, Suntrust Bank does not fit in to this category. Instead, it accurately fits that of a loan shark. The restructured loan proposition, offered by Suntrust clearly reveals predatory mechanisms. Characteristics typical for loans designed to exploit the vulnerable borrower include:
- not taking into account the borrower's ability to meet the loan terms
- excessive and unfair loan & legal fees (this is not a new loan - it is just an extension)
- purposely structuring the loan with terms the borrower cannot afford (huge principal reduction requirement)
- establishing impossible, abusive terms & conditions that will trap borrower and lead to a foreclosure
(huge payments and a very short term) which is not intended to recover a non performing property
I am fully capable to continue my loan payments but a foreclosure is going to cripple this otherwise healthy, self sustaining property. Are more foreclosures a "Suntrust way" or "Suntrust vision" of how to improve our currently ailing economy, because there appears to be a discrepancy between their actions and their motto listed on their website: “The Company’s mission is to help people and institutions prosper by providing financial services that meet the needs, exceed the expectations, and enhance the lives of our clients, communities, colleagues, and ultimately our shareholders.” Suntrust’s unwillingness to discuss its abusive loan terms and clear push towards foreclosure raises suspicions that it is an attempt to obtain this property at a discount. Examples of this include a low appraisal of $1, 100, 000 by the appraiser hired by Suntrust for a property which is well maintained, has 100% occupancy, has a gross rental income of $351, 876 per year, and was thoroughly renovated in 2009 at the government tenant expense of over $500, 000. This property was scheduled to close only a few months earlier, on 10/2/09, at the price of $2, 000, 000, with only 75% occupancy, while real estate firms such as Marcus & Millichap want to list it on the market at &2, 400, 000.
Interestingly, the empty parking lot 117ft x 205ft with no building and $0 income which is located right next to my property is currently listed at $700, 000 and the property directly across the street from mine, being a much smaller building and currently vacant with $0 income is listed on the market at $800, 000.
If this is not an unethical attempt to obtain my property at extremely discounted price, than it is a mystery why Suntrust wants to foreclose on the property appraised at $1, 100, 000 when the loan balance is $1, 349, 000 and the borrower is fully capable to maintain his monthly payments. Logically there is no real need to foreclose. It is common knowledge that any foreclosure proceedings further decrease the value of foreclosed properties usually leaving banks with substantial loses.
I am not asking for any preferential treatment, or for any reduction of my financial obligations towards my lender. I'm asking for fairness and a feasible, mutually beneficial, loan restructuring offer. No loan should resemble extortion scam. I believe that any predatory behavior and unfair lending practices, displayed in this particular case by Suntrust should be exposed and discouraged by proper, government regulatory agencies. I believe it is worth investigating whether unethical, predatory behavior is an official policy of an unscrupulous lender, discretely enforced upon Suntrust employees or it is individual initiative exceeding official policies requirements.

I am so fed up with suntrust Bank. I have spent the past 4 days on the phone with them for over an hour wasting time for unecessary things. First off I made a mortgage payment to them on Feb 9th inside the bank and I got a receipt for it. They said they never received the payment therefore they revoked my January mortgage payment so it looked as though I didnt pay Jan or Feb payment. I talked to 3 or 4 different people and everyone kept telling me we will resolve the issue in 24 to 48 hours. This was unacceptable. I finally spoke with a manager and she informed me that she saw what happened. She even said that the notes annotated were not very clear and done poorly. It was ridiculous. I couldnt believe that I paid over 1, 000 dollars for a mortgage payment, got a receipt and some knucklehead didnt put it in right.

Then the day after I got that squared away they called me about my HELOC and said it was past due, once again I have a receipt from the bank that I went to and paid cash for the bill. They said I was 20 days past due, but I wasnt. The bill was 461.00 and I paid $460.00 but once again some knuclehead put it in wrong and they said i only paid 330.00. I really couldnt believe it and I was told I would have to wait to speak with a manager to clear up the situation.

Suntrust will call you and tell you what you owe them without even checking their system first. I am truly disappointed in this bank and I can't wait to be done with them. I will take this complaint higher if I have to.

My name is Nelson Reid Phifer; I am 60 years old and have been a row crop and a poultry farmer for 40+ years. I have been a customer of SunTrust Bank, which was formerly Central Carolina Bank, and Security Bank, since 1964. I have never had a blemish on my credit and have maintained a superior credit score even as a farmer in some extremely lean years. I am thoroughly disgusted with the current situation that SunTrust has caused to lower my credit score.

I have written and called to every department available to me in both the bank and to all the banking regulators. I am appealing directly to the public to get an opinion on my plight in the banking bureaucracy.

As a farmer and friend I co-signed the above referenced account for a Hispanic gentleman that works for me since his English is limited. He has always been prompt in making payments. This late payment was due to a breakdown of communications, I was not contacted until the loan was 30 days past due. Mr. Lopez had bundled his phone package with a different provider which required a phone number change, the bank could not reach him and the bank which has access to all of my telephone numbers made no attempt to contact me until the account was already in late status by six days which was criteria for the negative credit reporting. I was told by Suntrust employees that the bank only had to contact the primary borrower, which is incorrect according to their own “Unsecured Credit Line Agreement and Disclosure”. In this document we as the borrower, are equal co-owners of this loan with the terminology such as “you”, “your”, “Applicant” ‘means each and every person who signed the contract’”. Since it was my credit score affected by this problem, it was imperative that I also be contacted. Immediately upon learning of this problem, I went to my local bank and took care of the problem in less than one hour. I feel that this entire transaction has been a major breakdown of communication, which has damaged my credit score. Since I am a farmer it is extremely important for me to keep my credit score high and this misunderstanding is the only blemish I have had in 60 years. This problem has consumed days and months of my time that is needed to do my job (which is feeding the world) instead of fight the bureaucracy of banking.

At this point, having contacted all resources available to me to no avail, I am convinced that this has become a racial problem since the gentleman that I co-signed for was Hispanic. I am appealing directly to the public to get your opinion on my plight in the banking bureaucracy.

I had four charges pending on my account from 10/19. I had $300 in the account when my wife charged and paid three bills electronically for $220 each on 10/20. This morning I went online to check my account and noticed $144 dollars in penalties, but still had a balance of $40 dollars and $600 in pending charges. I was going to depositi money today to cover those pending charges. When I called Suntrust, they told me that the unavailable funds penalty(UAF) is done on available balances including pending items. They told me that they put two of the $220 items first, then posted the other four transactions(but not the two $220 ones), all with penalty fees because the two transactions of $220 put my available balance into the negative. I got run around for two hours, everyone including supervisors giving me different answers. They told me I would be charged more UAF penalties if my available balance remained negative, even if they do not clear the pending transactions. Also, I would be charged NSF(Non sufficient funds penalties if they did clear. The only answer that was consistant was "That's how we do things". They are ripping people off with their penalty charges. SUNTRUST is the worst bank I have ever been associated with. After everything clears, I will be closing my account!!!

So I deposit a check at Suntrust Bank on October 2, 2009. On Wednesday the following week, the check has still not been deposited so I call up Suntrust. The operator that I talk to confirms that the check should have been posted already and is unsure why there is no money in my account.

So I then get told that Suntrust lost the deposit for $571.59 and that they need my authorization to look for it and that it could take 10 business days or more. The authorization cannot be given over the phone. I have to file a report with them which I did and provide them everything I can including a copy of the check (which they lost). I couldn't provide a copy of the check to thema nd am now being told that they still don't know where the money is located and that someone else may have been given the money instead but they're not sure.

Fast forward to today and I get told that them losing my check and making me late on my payments is just something I'm going to have to deal with. If they cannot locate teh check in 10 days, then someone will need to work with me and that could take months while they sit on my money. I asked if I could charge interest since that's what they would have done if I lost their money or was holding onto it. They obviously said no and that it's not the way it works. They are allowed to lose my money and not do anything to help find it while I am supposed to wait.

I suppose I could ask the check issuer to cancel the check. But that will cost them and they in turn would charge me. Moral of this story - Suntrust likes to steal money from little people. My car payment is probably going to be late now thanks to them and my CC rates could go up if I don't find a way to pay the balance off soon.

By the way, I think I'm also going to "tweet" about this every day until I get my money back from Suntrust. Maybe I'll tweet twice a day. :-)