If your home equity line of credit has been frozen illegally, you may be able to appeal the decision. According to a recent Market Watch article, there are several ways to go about complaining. Here’s my summary of the options with additional links and phone numbers, which will hopefully be of use to a few readers:

1. Follow your lender’s formal appeals process. You should have received some type of appeals notice when you got your HELOC freeze notice by mail. Follow the instructions given and see if your lender will reconsider. It’s pretty common for them to reevaluate your credit risk and ask you to pay for an additional property appraisal.

2. If that doesn’t work, contact a lending regular. Who you contact will depend on the type of lending institution your home equity line is with.

If your home equity line is from a bank (usually with the word “National” in its name), send your complaints to the Office of the Comptroller of the Currency. (Phone: 1-800-613-6743, website).

If your home equity line is from a savings and loan or savings bank (usually with the phrase “Federal Savings Bank” in its name), send your complaints to the Office of Thrift Supervision. (Phone: 1-800-842-6929, website).

3. Head to court. This is the least desirable option and it may end up costing you more than the trouble is worth. Unless you’re prepared for a fight, it may be better to give up and seek alternative funding sources (such as taking out an HELOC or private loan elsewhere).

Although HELOC freezes are all too commonplace these days, there are definitely a few options left for creditworthy borrowers who have been treated unjustly.

See Also:

Office of Thrift Supervision Warns HELOC Lenders

FDIC Warns HELOC Freeze Lenders

HELOC Lender Obligations Under the Truth in Lending Act

Tags | FDIC, Heloc, heloc freeze, home equity line of credit, Office of Thrift Supervision, regulation z