- Report: #1494092
Complaint Review: Capital Bank NA - Rockville MD
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Capital Bank NA
One Church Street, Suite 100 Rockville, 20850 MD, United States
Phone:
301-468-8848
Web:
https://capitalbankmd.com/
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Capital Bank NA Bait and switch scam Rockville MD
Around Jan 28,2020 I attempted to refinance 2 investment properties with Capital Bank NA.I requested and was provided quotes outlining the terms including rate and closing costs involved and based on this information I decided to proceed with them (I had other quotes from other lenders).I provided them the necessary personal information which they processed and following this they ordered appraisals for the properties.
The valuations of the appraisals came back with one property being higher than the originally estimated amount and the second lower than the estimated value.Initially I was advised by them that due to the lower valuation (for the property that came back lower) the loan amount will be lower for that property and I agreed to that.After I agreed to the lower amount, they said that they will not be able to do the loan under the original terms (rate and closing costs) and provided me revised closing terms with a much higher rate (addition of 0.375% to the rate) as well as much higher closing costs (Additional 2.25 points to the original closing costs quoted).
The revised terms will end up costing me thousands in additional closing costs as well as thousands in additional interest over the life of the loan. For the second loan (the one that the value came back higher) they raised the closing costs significantly (raised the title fees). I tried to get an explanation as to the drastic changed terms and they stated that since my new loan amount is lower than the original (which is true for one of the properties ,the second loan amount being higher than the initial amount) they can no longer honor their initial commitment and provided me with the new outrageously high rate and terms.
I ultimately decided not to pursue the loans with them and now they want to charge me fees over $1000 for their services since I did not close the loan with them.It seems to me that this is a classic case of a bait and switch techniques in order to attract customers with low enticing rates and terms and during the process, switch to substantially higher rates and fees.
1 Updates & Rebuttals
FloridaNative
West Palm Beach,Florida,
United States
Those fee's sound like Appraisal fees
#2Consumer Comment
Tue, August 25, 2020
You didn't say what the fee is for but it sounds like a fee for the appraisal on the properties you didn't refinance. If so, then that fee would be your fee to pay if you had an agreement to pay for the appraisal(s) since they are a third party fee. Nomally you would have paid the fee in advance, at the time the appraisal was ordered, rather than at completion. If the fee is not appraisal related, did you sign anything with the lender agreeing to pay something else?
BTW, good call on walking away when the lender suddenly comes up with much higher closing costs after the appraisal is completed. The lender is supposed to provide you with a Loan Estimate right up front so you can accurately compare your costs between various lenders. Waiting until after the appraisal is completed to hit you with extra costs is a sneaky tactic. You did the right thing by cancelling the refi with that lender.
