Class-action faults Citibank

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Bailey pointed out that he had never accessed the line of credit and hadno balance, and it was Citi that Still Citi refused to release the lien, he said in courf documents. Time to call in the lawyers. Jeff Goldenberhg at filed a class-action complaint in federal couryt April 17 on behalf of two purporte d classes based on differentlegapl claims. One includes people with zero-balance equity lines who were charge d fees by Citi afteerit terminated. The other is all whose lines were cut off becaussCiti decided, without a proper basis, that their propertg values declined. According to their the lien prevented the Baileys from refinancingin January.
They eventuall y paid Citi the fee to get a newmortgage approved. Since the line had a zero balancs and they no longer had accesato Citi’s funds, “there’s nothing for the lien to protectg at that point,” Goldenberg said. As to the othefr class, the federal Truth in Lending Act requirex that banks have a sound basis for determining thateach property’sa value had declined, Goldenberg said. In congressionapl testimony before the onMarch 25, Scot t Polakoff, acting director of the , said the agenct had received 99 consumer complaints in 2008 about home equityg lines, up from only two in 2007.
“Such a credi line can be cut back based on a valuatiobn ofthe borrower’s particular home, not more generak home prices,” Polakoff said. The assessed valus of the Baileys’ house, basefd on a September 2008 reappraisalk by the HamiltonCounty Auditor’s office, is That’s up from $294,300 in 2005.