Here at my bank, we have two SCs who are (hopefully) about to be former customers.
SC1 and his wife have a mortgage with us. I've only dealt with him, though I suspect some of the SCness carries over to her. Several years ago, SC1 lost his job and the bank moved the loan to non-accrual (meaning the accrued interest goes into a separate bucket and all the payments are applied to principal - this way, the bank attempts to collect the principal balance first and only collects the interest if there's money left over). SC1 has since found new employment, but the loan remains on non-accrual because they have intermittent lates.
About two months ago, SC1 informs us that they have made a claim to their insurance because a drain pipe "exploded," spraying sewage around several rooms in their house. I can only imagine how much that stinks (literally). They weren't satisfied with the settlement the insurance company offered them, so they hired an independent adjuster for a second opinion. It seems that went nowhere, since SC1 eventually brought in a check from the insurance company. Per standard practice, the check was made out to SC1, his wife, the independent adjuster, and my bank. SC1 brings the check in and expects us to sign it over to him so that he can complete repairs. Um, no. He's telling me that the house isn't livable, so basically the collateral is worthless, yet he wants me to give him the insurance money without paying off the loan. I politely told him no. He asked if there was any other option, since in his estimation, the loan would be paid off, but he'd be left with a shitty house (literally) and only about $200 of the insurance money. I said I would talk to my boss, Goodhair. He left with the check.
I talked to Goodhair when he returned the next day, and he agreed with me. SC1 needed to pay off the loan with the insurance money. I called SC1 to tell him, and he started to argue with me about the balance. Though I tried to explain it several times, he just couldn't understand why he had to pay so much accrued interest. He also didn't understand why he had to pay off the loan, trying to play the sob story angle by repeating that the house wasn't livable and he and his wife and children needed someplace to live. But I stuck by what I said. I told him he could apply for a new loan either to repair the house or to buy a new house, but he had to pay off the current loan.
Then he asked me to talk to his attorney. He said that several companies were trying to screw him over, and he wanted to make sure we weren't, too. The attorney asked for a copy of the original note, so I faxed it to him. We went over the right of set-off on the back of the note, which says that any items payable to the customer that he presents to us can be used to pay any amounts due and owing on the loan. So we can use the insurance check to pay off the loan. The lawyer seemed ok with that. Then he asked about the accrued interest. Apparently, SC1 had told him that we were trying to collect interest through the maturity date of the loan. When I explained that, no, we're only trying to collect interest through the day the loan is paid off, and the reason it's so high is because we put it on non-accrual status about 3 years ago, he seemed to deflate.
He must have explained the situation to SC1 because SC1 just came in to pay off the loan. I gave him a receipt for his paid loan, a check for the independent adjuster, a check for the remaining amount, and an application for a new loan. Chances are we'll turn him down for the new loan, but we can't legally discourage him from applying.
SC2 we've had issues with before, ending about 10 years ago when he served jail time for writing checks on a closed account with us. Before that, he had 3 loans with us. Each one was done because of an overdraft or a cashed check that he couldn't pay back. We eventually got paid back all money owed to us. But now, less than a month ago, CW opened a business checking account for him. Why he came to us, I'll never understand. His business is in a town 20 miles away. He must remember that he tried to screw us out of a lot of money. All I can figure is that every other bank in the area has already turned him down. CW must have bought his line of BS that his debt is all his wife's fault and that he's turned over a new leaf. It's my guess that he told CW that he found Jesus, because that seems to be the kind of thing that would convince her that he's changed.
SC2 opened the account about 3 weeks ago, and it's already overdrawn. He claims that he's supposed to be receiving a $2800 deposit from his merchant credit card account, but that hasn't arrived. He should know better than to write checks on an account before verifying that the deposit has arrived. Additionally, a $1700 check he deposited when he opened the account has been returned by the bank it was drawn on. From his account at that bank. When I called to ask about it, he said that after he deposited the check with us, his shop was broken into. They stole checks off his account at the other bank as well as some cash and even a car. He said he informed the bank the checks were stolen, but they wouldn't allow him to return them as unauthorized. The whole story reeks like last month's seafood.
When I relayed this to Goodhair, he said that we WILL be closing the account tomorrow. If the $2800 deposit comes in, we'll send SC2 a check for the funds remaining in the account. If it doesn't arrive, we'll turn it over for collection. Time to close the account before we take a loss.
SC1 and his wife have a mortgage with us. I've only dealt with him, though I suspect some of the SCness carries over to her. Several years ago, SC1 lost his job and the bank moved the loan to non-accrual (meaning the accrued interest goes into a separate bucket and all the payments are applied to principal - this way, the bank attempts to collect the principal balance first and only collects the interest if there's money left over). SC1 has since found new employment, but the loan remains on non-accrual because they have intermittent lates.
About two months ago, SC1 informs us that they have made a claim to their insurance because a drain pipe "exploded," spraying sewage around several rooms in their house. I can only imagine how much that stinks (literally). They weren't satisfied with the settlement the insurance company offered them, so they hired an independent adjuster for a second opinion. It seems that went nowhere, since SC1 eventually brought in a check from the insurance company. Per standard practice, the check was made out to SC1, his wife, the independent adjuster, and my bank. SC1 brings the check in and expects us to sign it over to him so that he can complete repairs. Um, no. He's telling me that the house isn't livable, so basically the collateral is worthless, yet he wants me to give him the insurance money without paying off the loan. I politely told him no. He asked if there was any other option, since in his estimation, the loan would be paid off, but he'd be left with a shitty house (literally) and only about $200 of the insurance money. I said I would talk to my boss, Goodhair. He left with the check.
I talked to Goodhair when he returned the next day, and he agreed with me. SC1 needed to pay off the loan with the insurance money. I called SC1 to tell him, and he started to argue with me about the balance. Though I tried to explain it several times, he just couldn't understand why he had to pay so much accrued interest. He also didn't understand why he had to pay off the loan, trying to play the sob story angle by repeating that the house wasn't livable and he and his wife and children needed someplace to live. But I stuck by what I said. I told him he could apply for a new loan either to repair the house or to buy a new house, but he had to pay off the current loan.
Then he asked me to talk to his attorney. He said that several companies were trying to screw him over, and he wanted to make sure we weren't, too. The attorney asked for a copy of the original note, so I faxed it to him. We went over the right of set-off on the back of the note, which says that any items payable to the customer that he presents to us can be used to pay any amounts due and owing on the loan. So we can use the insurance check to pay off the loan. The lawyer seemed ok with that. Then he asked about the accrued interest. Apparently, SC1 had told him that we were trying to collect interest through the maturity date of the loan. When I explained that, no, we're only trying to collect interest through the day the loan is paid off, and the reason it's so high is because we put it on non-accrual status about 3 years ago, he seemed to deflate.
He must have explained the situation to SC1 because SC1 just came in to pay off the loan. I gave him a receipt for his paid loan, a check for the independent adjuster, a check for the remaining amount, and an application for a new loan. Chances are we'll turn him down for the new loan, but we can't legally discourage him from applying.
SC2 we've had issues with before, ending about 10 years ago when he served jail time for writing checks on a closed account with us. Before that, he had 3 loans with us. Each one was done because of an overdraft or a cashed check that he couldn't pay back. We eventually got paid back all money owed to us. But now, less than a month ago, CW opened a business checking account for him. Why he came to us, I'll never understand. His business is in a town 20 miles away. He must remember that he tried to screw us out of a lot of money. All I can figure is that every other bank in the area has already turned him down. CW must have bought his line of BS that his debt is all his wife's fault and that he's turned over a new leaf. It's my guess that he told CW that he found Jesus, because that seems to be the kind of thing that would convince her that he's changed.
SC2 opened the account about 3 weeks ago, and it's already overdrawn. He claims that he's supposed to be receiving a $2800 deposit from his merchant credit card account, but that hasn't arrived. He should know better than to write checks on an account before verifying that the deposit has arrived. Additionally, a $1700 check he deposited when he opened the account has been returned by the bank it was drawn on. From his account at that bank. When I called to ask about it, he said that after he deposited the check with us, his shop was broken into. They stole checks off his account at the other bank as well as some cash and even a car. He said he informed the bank the checks were stolen, but they wouldn't allow him to return them as unauthorized. The whole story reeks like last month's seafood.
When I relayed this to Goodhair, he said that we WILL be closing the account tomorrow. If the $2800 deposit comes in, we'll send SC2 a check for the funds remaining in the account. If it doesn't arrive, we'll turn it over for collection. Time to close the account before we take a loss.
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