Grounds to Sue Lender

[Justin Joseph]

Hi All,

Have been enduring a frustrating experience with a lender and I am wondering if I might have grounds to file a law suit against them.  I am looking to refinance a home I own and have engaged a new lender, primarily because they quoted a much lower rate than the lender I typically work with.

Opened a loan app with a lender in early February.  Sent them a round of document requests, including tax returns 2/15. Appraisal ended up being scheduled for March 6th.  Survey ended up being scheduled for March 9th.

On March 7th they tell me they need payoff requests for my car loan and a credit card. I inform them that this is the first I have heard of any need to payoff these debts to proceed with the loan and I am not interested in taking that approach.  I did not hear back.

On March 10th I am told that I cannot proceed with the refinance unless some of the funds are applied to paying off my car loan and a credit card balance.

They had my financial details for 20 days before telling me of the terms of the loan, and I ended up incurring over $1100 in expenses (survey and appraisal) related to the loan. Had I known this information in a reasonable time, I would not have gone forward with the loan. 

With money already invested in the loan however I felt compelled to move forward, but only because after inquiring they told me they would not refund me any of the costs I had incurred had I sought to cancel the loan application.

Now, and I realize that this part is completely my fault, today I receive notice that my interest rate is going up 0.5% from what they quoted me because I did not lock it. That is my bad for not catching that in the original documents, but it also speaks to how incredibly poor the service of this company is. Everybody with a pulse knew interest rates were going up, yet they didn't lock in my initial rate. This change is going to cost me $31/mo for the life of the loan (should I go forward with it).

Anybody think there's a chance I have a claim against them based on negligence or anything else? I really detest these people, their incompetence is astounding. I'll admit I bear some fault, but I feel like I was bait and switched once (with the requirements to use funds to pay off other debt), and now again (interest rate going up).

[Jason Hirko]

@Justin Joseph Why would the lender have locked in a rate for you before today, when two weeks ago you told them you weren't interested in moving forward?