bank increased my mortgage interest rate by 0.75% for no solid reasons

[Jitao Niu]

A local bank suddenly increased the rates of several loans, resulting in over $40,000 increase of interest annually.

when I found out, I asked for the reason. They said it's because I did not follow the rules for marinating operation and deposits accounts at the bank. In fact, I deposited all the rent to the bank and only paid the mortgage from the account, leaving large amount in balance in checking accounts in about two years. The bank have been  ignoring my emails and calls. 

Not sure what to do now. Wonder if anyone had similar issues?

[Randall Alan]

Quote from @Jitao Niu:

A local bank suddenly increased the rates of several loans, resulting in over $40,000 increase of interest annually.

when I found out, I asked for the reason. They said it's because I did not follow the rules for marinating operation and deposits accounts at the bank. In fact, I deposited all the rent to the bank and only paid the mortgage from the account, leaving large amount in balance in checking accounts in about two years. The bank have been  ignoring my emails and calls. 

Not sure what to do now. Wonder if anyone had similar issues?

@Jitao Niu

Being that it is a local bank - I would make an appointment with a real estate loan officer at the bank and go in and speak with them.  So it sounds like they wanted to see you maintain deposit accounts with the bank and now they have possibly removed a discount they had given you when you took out the loans?  

I would review my loan agreement - as the bank must abide by the terms within that.  If it is a fixed rate loan, I don't see how they can increase the rate if you are not defaulting - but your mortgage / loan agreement should spell things out for you.   

Make an appointment, be civil, and talk it out with them.  Worst case try pleading ignorance and ask them to rescind the increase now that you understand the situation and you will be sure to do whatever it is they are wanting.  Smaller banks have more leeway than bigger banks.  Realistically most banks would send you a warning letter if you were doing something they didn't like.  

Depending on what your current interest rate is, it may be worth looking at refinancing the loan to get a lower rate?  You've got 40,000 reasons to try and figure / work it out!

Hope you do!

Randy