Call Kurtis

Call Kurtis: Credit Reduced Follow-Up

SACRAMENTO (CBS13) ― We first told you about Wanda and Bill Schmidt back in June. After taking $10,000 out of their retirement savings to pay down their home equity line of credit, their bank Washington Mutual reduced that line 69%.

"I mean if we had known that obviously we would have kept the cash in the bank." The Schmidt's line went down from $151,000 to $47,300. "The explanation was that the values had decreased in the area."

With Bill being a real estate appraiser, the Schmidt's felt there was no way the value of their home had dropped enough to justify the line reduction. 'After we got up off the floor, my first inclination was this is a mistake."

They came to us for help and we contacted WAMU, who told us in a letter; "We will increase, decrease, or suspend, lines based on a number of factors including a customer's entire relationship with WAMU." The Schmidt's have been WAMU customers for more than two decades. We got WAMU to agree to reconsider. "If your house appraises for what is in line for what the line of credit is, we will reinstate your line of credit and we will also pay for the appraisal."

The house needed to appraise for $600,000. "It appraised at $625,000." True to their word, within a month WAMU sent a letter, re-instated the Schmidt's credit line for the full $151,000. "I like the part that says Mr. Schmidt if there's anything else we can do to be of any help please feel free to all u s at anytime." WAMU also credited the Schmidt's back the $450.00 appraisal fee. "Everything was done in a very timely manner. I'm sure it had a lot to do with Call Kurtis."

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