Chase Bank Loan officer applies for a refi on our behalf and then charges us an application fee when we decline. San Ramon, California

My husband went into Chase to see about refinancing our home from an ARM to a fixed rate. We weren't sure if we'd qualify since right now we are on a fixed income. Currently Chase holds the mortgage that originally was with Washington Mutual. The loan officer gave him 3 printouts of different terms and interest rates and told him she'd need bank statements, tax returns and other items. She said we'd get something in the mail in the next few days and sure enough we did. It was for a loan she picked for us from one of the rate sheets.

I called her immediately and let her know we had not chosen any rate and term yet and she stated that it was no problem, we could pick any of the three. I started researching the, almost 5%, interest rate she was trying to charge us and found it was too high. I called her 5 days after receiving the paperwork and told her we didn't want to pursue. She then explained the interest rate as being higher than normal because Chase was "not making enough money" on our loan. She then billed my husband's Chase credit card for a $395 application fee on the same day.

We went in to see if we'd qualify and find out what the rate would be. I've requested a copy of anything she may have that we indeed applied for a loan and authorized a credit card to be charged an application fee. She cannot produce anything nor will refund the $395.