San Mateo Credit Union

Predatory Lending

Took out a HELOC under a bait-and-switch 1.99% introductory rate. I made sure to borrow only while that rate was still in effect. It was verbally explained to me that if I borrowed MORE, then the rate then would be adjusted to 3.25%. But I did not plan to borrow more, and didn't- so I thought I'd be re-paying at 1.99%. I never would have agreed to an adjustable rate where they can continually jack it up- I would have taken out a fixed. I've never had an adjustable rate loan, the car loans & mortgage all have been fixed. Thus I relied on the bank to explain the terms, and they did an incredibly poor job of that- in a way that feels deceptive rather than just poor communication. I've called and spoken to senior people multiple times and everyone gives a different explanation. The last time I spoke to them a few months ago, I was assured that they cannot raise it more than 2% in a year. Now I see my monthly payments zoom. I call and am told they have it at 5.25% because they aren't using the 1.99% rate I actually borrowed at as their base interest rate from which adjustments are made- they are starting at 3.25 and now have added on another 2% so they have already increased it 3.25% in a year. The "promo rate" was a total FRAUD. Unless you can repay your entire HELOC back with the one year, you are just paying prime rate on an adjustable mortgage, and you will be gouged. The promo rate meant absolutely nothing other than an enticement to take out the loan from them, rather than my long term credit union elsewhere. Unfair & predatory lending practices surprising in a credit union.