Posts Tagged ‘Citigroup’

More on the HELOC freeze from SmartMoney.com (with a shout out to yours truly).

Last week, Ben Popken at Consumerist suggested that the repeal of the Glass-Steagall Act in 1999 by a Republican Congress was a gift to Wall Street that encouraged banks to issue the sketchy mortgages that, failing spectacularly across the country, have dragged the economy into the toilet.

From the comments, it looks like Citibank’s HELOC freeze is causing more than just a few bounced checks. Reader Barbara Clark says Citibank reported the loan as suspended on her credit report, turning it into a major negative account and trashing her credit.

I just spoke with a homeowner who bounced a check to her tree service because Citibank suspended her home equity line of credit before notifying her. When she finally received a notice from Citibank in the mail, it suggests that (PDF link) Citibank is apparently suspending home equity lines of credit nationwide due to [...]