Bank of America to Some Small Businesses : pay your loan in full NOW

Totally disgusting. Also, is this the start of a trend? How long before they tell homeowners the same thing?

Bank of America Cuts Off Credit to Some Small Businesses

Bank of America is severing lines of credit for some of its small-business owners and calling due full payment on existing debts. Absent that, the bank is offering businesses abbreviated repayment plans at high interest rates.

Bank of America needs to IMPLODE already.

reply to post by Vitchilo


As soon as the Euros is destroyed, banks WILL start to call in their loans to be paid in full - these will mostly be bad loans and risky loans. Towards end of 2012 to early 2013 this will become common place. Banks also by this time won't loan out to businesses and it will become very difficult to get a home loan.

You think this is the start of the credit crunch?

Everyone should know by now the bankers create fiat and then destroy it by calling in their loans. They called it a recessesion as an excuse to create credit through bailouts, now they are calling in the loans. Expect record high bankruptcy of businesses.

can they do this on houses - mortgages?

I don't know anything about how this works.

Originally posted by hadriana
can they do this on houses - mortgages?

I don't know anything about how this works.

you'd need to read your mortgage contract as it will have details on how they can possibly call in the debt

Why does anyone bank with them?
Credit Union all the way.

But, that is not surprising.
Very bad news indeed.

The greedy just want to maintain their addictive habits. They're like druggies that keep needing a fix. What needs to happen, instead of B (unch) of A (holes) imploding....PEOPLE need to stop using all banking services, including: Wells Fargo, Chase, Citibank, etc, etc.

Which part don't people "GET"? You're being USED, by the SYSTEM, in general. Go to work: GET USED; Go to the bank: GET USED; Go to the doctor, GET USED. We are not human beings.....we are SLAVES. Crazy thing is....NO ONE seems to mind or care. I am NO ONE's bi-atch!

BTW....why do people use banks? What is their purpose...besides making a PROFIT?

A flashlight will not be enough! You're gonna have to travel DOWN the rabbit hole...to see how far goes. And, i will ASSURE you this....the rabbit hole is PREEEEEEETY DEEP. I'm not just talking banking...i'm talking EVERYTHING you/we have ever been taught. Right from the start...we're fed the lie, with: Santa, Easter Bunny, Tooth Fairy; to: Getting a j.o.b., paying taxes, voting; and every thing in between, including: Religion.

Wake up people! Life is about DOING WHAT YOU WERE CREATED TO DO! It's not about borrowing....it's about LENDING. It's not about hoarding.....it's about GIVING! Stop being SELFISH...and be SELF-LESS! Get out of the MATRIX!!!

My mortgage has been sold so many times - is the initial contract I had still what's valid?
I never got another.

The first 2-3 years after we bought the home we never knew WHO to pay - we were always getting letters it had been sold but nothing else. It finally ended up with Wells Fargo and has been there for years.

Originally posted by hadriana
My mortgage has been sold so many times - is the initial contract I had still what's valid?
I never got another.

The first 2-3 years after we bought the home we never knew WHO to pay - we were always getting letters it had been sold but nothing else. It finally ended up with Wells Fargo and has been there for years.

edit on 3-1-2012 by hadriana because: (no reason given)

If they come to you and ask for the money
Ask them for the mortgage agreement, if they cannot procure said mortgage (which they probably dont have) then your set, don't have to pay a thing

Or so i hear from ATSers

reply to post by hadriana


Actually you could call them RIGHT NOW and tell them you won't pay anything till they produce the note. If they don't have it, you don't have to pay anything.

There's already million of people in the US who have lived in their houses for 2-3 years now and have not paid a cent because they told the bank to show the note and they didn't have it.

The irony is that these same businesses were making money and had their tax dollars stolen from them by the government, then the government gave that stolen money to BofA, now BofA wants to put the people out of business who saved their business. It is insanity. Please, please let the revolution come. Please. I am so sick of these traitors. It makes me feel like I live in the Twilight Zone; it's just surreal what we allow these big businesses to get away with. I seriously hope that I live to see that day that these "Titans of Industry", and their politician tools, are strung up and hung by the neck until they are dead.

I don't want to disturb the water - but I bet they don't have our note. We only owe in the 20k range on the home but my husband lost his job and we are in a high unemployment area - he can't find work and I can only find a bit here and there w/no benefits. We don't have family to help us should we need it.

We tried to get that small amount refinanced and they would not do it! (We knew my husband would probably lose his job, so we were trying to get payments as low as possible because it is our home and we don't want to lose it.)
Everyone said that was just bizarre they wouldn't finance it, that the house should have stood for itself. Also they tried to tell us that cash was not an asset - the whole thing was MAJOR weird. His credit is stellar and I just have one bad mark on mine.

What will these businesses do if they can't pay? Will they have to go bankrupt or will they lose their business?

reply to post by hadriana


They will have to file for bankruptcy. Most likely they will still have to pay BOA as part of the bankruptcy settlement. Lose Lose.

reply to post by rogerstigers


It feels like a playback to occupy to me-not sayin it is but it feels that way-hurt us, we'll hurt you.

Originally posted by nuttin4U

Which part don't people "GET"? You're being USED, by the SYSTEM, in general. Go to work: GET USED; Go to the bank: GET USED; Go to the doctor, GET USED. We are not human beings.....we are SLAVES. Crazy thing is....NO ONE seems to mind or care. I am NO ONE's bi-atch!

BTW....why do people use banks? What is their purpose...besides making a PROFIT?

A flashlight will not be enough! You're gonna have to travel DOWN the rabbit hole...to see how far goes. And, i will ASSURE you this....the rabbit hole is PREEEEEEETY DEEP. I'm not just talking banking...i'm talking EVERYTHING you/we have ever been taught. Right from the start...we're fed the lie, with: Santa, Easter Bunny, Tooth Fairy; to: Getting a j.o.b., paying taxes, voting; and every thing in between, including: Religion.

Amen to that!! I was so upset when I finally learned that I had been lied to my whole life about damn near everything(not so much the santa, easter bunny, lie)... Depression would be putting it lightly. Spent the next 10 years of my life learning how the system really works, and why I have always had this feeling deep down that something wasn't right with the world... I live in a free country but feel like a slave to peices of paper that have no backing what so ever. The banks and our elected officals are our masters. Every day I see the government waste my hard earned money on war's and stupid programs, that only benefit a small group of very rich elitist bastards. I refuse to get tangled up in a system of never ending debt and credit.

I really believe the day will come when "cowboy logic" takes over again. The whole you wrong me i'll wrong you mentality will resurface and our so called masters will be running for there safe room's. They may treat us like garbage but they are smart enough to know they are out numbered hundreds to one. Why do you think all these people feel the need for a safe room in the first place? Deep down they know they are doing people wrong and one day they WILL pay the price for there greed and evil ways... An eye for an eye so to speak.

Most loans, like mortgages, have set contractual due dates which the lender (bank) cannot change. If, however, there is small print in there that allows for exceptions, they are within their rights to exercise that small print. For instance, I have heard some mortgages can be called in, at least partially, if the value of the mortgaged property falls below a certain level.

That's why you should always, always, always read a contract thoroughly and ask questions if you do not understand it before you sign it.

As I understand things in this case, these are open lines of credit, sort of like a company credit card. It works like this: you have an idea to start a business, but you need money. You make a sales pitch to a bank and get an approved line of credit. You can then spend that money as you see fit on the business, be it payroll, leases, equipment, supplies, whatever. Each month you pay the interest on that debt and hopefully some of the principle.

The downside is that apparently the debt can be called for about any reason. If it is called, you have to pay it back. Period.

This was a seriously bad decision on the parts of the businesses who signed the line of credit, but it is also a seriously bad decision for BofA in the sense that it will further erode the economy. It seems to me that BofA is in some serious financial shape anyway, based on their recent decisions (like trying to charge debit card holders for access to their funds). This despite their bailout using our tax money.

Without that bailout, I would say this is another case of buyer beware, but when they accepted the bailout money they accepted some responsibility for stimulation of the economy that went along with it. They have miserably failed to live up to this responsibility IMHO.

TheRedneck

I would read my loan contract carefully and then initiate a class action lawsuit against them for breach of contract if it was at all possible.

Barring that, I would simply and immediately declare bankruptcy.

Screw these big financials. I hope that this is a sign than Bank of America is biting the dust.

This is just wrong.

Everytime i have to go in there to cash a check it makes me feel uncomfortable. It's like vultures looking at prey. I know that sounds a bit much but I have never had a good personal experience with them. So far they are nice to me cause they keep trying to get me to open and account and it will never happen. I will go to a Credit Union in the future for work purposes. I just don't like the big banks. They never care about their customers and it shows.

I dont know why anyone would want to deal with them. I do know that our local Credit Union has been having a lot of new customers that have left BOA, so maybe people are starting to realize how bad these banks are....

reply to post by filosophia


It's obviously far.. far.. far more complicated than that? But yes, it is the beginning of a Credit Crunch. Credit has been contracting gradually since August. They always start with consumer cards, though the Feds leaned on banks to ease their line reductions.. beginning in August however most banks began reducing credit lines on credit cards again .. stop over the holidays (so people maxed them out ) then will continue reducing in January.

Calling in a business line of credit usually is an indication that the loans cannot be packaged and traded, swapped or sold.. meaning the credit crunch isn't just with BoA, but with all of it's major business partners.. or, in other words, the entire banking industry.

It should be clear to business owners, and even anyone with a personal line of credit at a major bank, they need to move their business transactions and loans to smaller Credit Unions or Regional Banks.

reply to post by AnIntellectualRedneck

I hope that this is a sign than Bank of America is biting the dust.

Herein lies the real issue.

Yes, agreed, BofA deserves to fail, miserably, taking the financial futures of its controllers along with it. But it will take much more than that: hundreds of small businesses that still depend on BofA for operating capital, perhaps millions of jobs that depend on those small businesses, and millions of hits to retirement plans that affect average hard-working families whose only 'sin' is trying to invest for their future.

The failure of BofA will deal a serious blow to the entire economy, you and I included. And when all the dust is settled, I would bet good hard-earned and rare money that the ones who are hurt the least are the controllers responsible for the problem in the first place. That's what happens when corporations get 'too big to fail'. Thus I agree that 'too big to fail' should equal 'too big to exist'.

That's what the now-forgotten anti-trust laws were there to prevent. Now, at least in this case, there's no way to spite your face without cutting off your nose.

TheRedneck