This complaint is against Regions Bank for the lack of disclosure and misrepresentation (lying) of our commercial loan terms.
Before obtaining financing from Regions Bank, my business partner and I reviewed the commercial
mortgage loan documents provided to us by Regions Bank. There were no prepayment penalties in the loan documents so on 1/16/2004 we signed the Promissory Note in good faith. On 10/29/2004 that mortgage was refinanced with a new Promissory Note (lower interest rate)under the same terms, again on 5/25/2007 and again on 3/7/2008.
Each time the Commercial loan officer telling us that the terms were the same, so there were no need to spend time reviewing the documents, just sign them and she would mail us a copy once they completed
the loan. We actually did receive a copy of the first three loans, but not for the fourth loan. She seemed to always be in a hurry. We trusted our Regions loan officer (huge mistake). With interest rating dropping in 2008, we began to shop for lower rates again. At that time SunTrust Bank offered a much lower rate than our current Regions commercial loan. We went to our Regions commercial loan officer and requested to refinance again with a rate competitive to the SunTrust offer. Regions told us that they could not compete with the SunTrust rate, so we notified her of our intent to move the loan.
On 4/16/2010 the loan was moved to SunTrust using a local real estate attorney provided by SunTrust. The transaction was completed and we went on with our business. After the first of the year we never received our form 1098 from Regions so my partner called one of the commercial customer service reps to get a copy. A few days later, she faxed the data to my partner on Regions letterhead.
In the mean time I also contacted my personal Regions banker and ask him to fax me a copy of my form 1098. Later that afternoon I received a faxed copy of my form 1098. It stated a total that was $11,300
greater than the data that was provided on the Regions letterhead. I then called the commercial customer service rep to inquire about the two different totals. She then told me that the different was a prepayment penalty of $11,300. Theres several things wrong here: 1) our commercial loan officer lied to us about the terms of the loan. 2) a copy of the promissory note was never provided to us after the loan was completed. 3) the closing attorney was not notified of any prepayment penalty.
I first spoke with Mike Welch of Regions Bank. I explained to situation to him and he stated that he would look into it and call me back. I never heard back. Very unprofessional.
Second, my partner met with the Columbus area president, Ron Smith about the issue. He told my partner that understood and would look into the issue and get back to him shortly. Needless to say, we never heard from him either, so my partner call him back a few days later, but was told that Regions
was within the law.
Regions Bank has stolen another $11,300 from a small investment partnership. This is a great example of the way Regions Bank does business with small business. A THIEF IN THE NIGHT! I have closed both my personal and business accounts with Regions and recommend that all small business do the same.