I am a business owner that has always paid his bills and has perfect business and personal credit. I have a line of credit with Professional Business Bank in Pasadena formally was Spectrum Bank in Montebello. The property that they are secured by is worth in the range of $700,000 to $750,000 in which I owe $125,000 which is under 20% of the value of the property. The Bank is telling me that since my financial condition has changed (lower income in 2008-go figure)they are requesting that I payoff my account. They have cancelled my credit limit of $250,000 and have told me via e-mail that they want me to close the account. While I was talking to the Vice President I was told that since my line of credit was at prime + 0.00(3.25%)they don't want that type of business and it should be at at higher rate.
Today March 3rd, I get a NOTICE OF DEFAULT letter (I am still up to date, have never missed a payment) from the bank stating that I have breached their loan agreement under the following:
Adverse change: Lender believes the prospect of payment or performance of the promissory have been impaired.
Insecurity: Lender believes it is insecure due to material adverse change.
The letter goes on to say since I am in default (which I am completely up to date-never missed a payment) I need to payoff by the 31st of March, 2010. Oh and here is the big kicker they are going to get their way becasue since they say I am in default they get to increase the rate 5% more to 8.25%. if I don't pay them. How fair do you think that is? Do you believe the bank practices are in good faith when they are attacking people that they have never had a problem with and has never missed a payment ever? I want to expose this bank on TV and show people that they have to fight back. Will you help me?
Ken Gunn
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