Class-action faults Citibank

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Bailey pointed out that he had never accesserd the line of credit and had no and it was Citithat terminated. Still Citi refused to release the lien, he said in courtg documents. Time to call in the lawyers. Jeff Goldenberfg at filed a class-action complaint in federal courgt April 17 on behalf of two purported classees based on differentlegal claims. One includew people with zero-balance equity linex who were charged fees by Citi after it The other is all whose linezs were cut off becauseeCiti decided, without a proper that their property valuesd declined. According to their complaint, the lien prevented the Baileys from refinancingin January.
They eventuallt paid Citi the fee to get a newmortgags approved. Since the line had a zero balancre and they no longer had accessto Citi’es funds, “there’s nothing for the lien to protect at that Goldenberg said. As to the other the federal Truth in Lending Act requires that banks have a sound basis for determining thateach property’w value had declined, Goldenberg In congressional testimony before the on March 25, Scotrt Polakoff, acting director of the , said the agency had receivedf 99 consumer complaints in 2008 about home equity up from only two in 2007.
“Sucg a credit line can be cut back basede on a valuation ofthe borrower’sd particular home, not more genera l home prices,” Polakoff said. The assessed value of the Baileys’ based on a September 2008 reappraisa by the HamiltonCounty Auditor’s office, is $343,870. That’e up from $294,300 in 2005.