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Home >> Lending >> Business Credit
Bank Empties Life's Savings without Warning
I have been doing business with a bank for twenty years. I have been an excellent customer and never late. I was shocked recently to see my both my personal accounts go from almost six digits to zero without any notice or anything. I immediately called the bank and was advised that my business line of credit that I always paid on time was called in, and the reason they emptied both my personal accounts was to of set the balance owing on the business line of credit. I found that out because I sold my business last year. The bank with the commercial line, which is also the bank I did my major commercial loan with, and also the bank that did the buyer's new loan, did not call the line of credit at that time and decided one year later to call in without any notice or anything. Although the property was sold, I was still paying on time. They said that due to the agreement, it stated that when the business is sold, the balance becomes due immediately and if not, it becomes default.
I had no idea what was going on, and if this is true, they should have taken it upon closing. Instead they cleaned up both my accounts and have caused havoc to my financial situation. I feel very depressed and don't know what to do. I feel like I was raped. Please help me. Can they do this, and what can I do about it?
Times are hard and this was my life savings. I would understand it if I was late or I did not do business with them, but I have given them so much. I kept huge balances with them, paid tons of interest on several accounts and never ever was late. Please help me. I feel this is unfair. We are humans, at least tell us ahead of time so we can resolve issues in a humane way. Please help!
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 You are not disputing that you owed the funds or the fact that the bank could have (you said should have) required that the business lines be closed out when you finalized your sale of the business. What remains is largely a matter of the timing of the bank's action, and the fact that you weren't prepared for it when the bank finally called the loan.
We don't know the details of your loan agreements, whether your business was a corporation or a sole proprietorship, and the provisions of the agreement that address the call of the loan balance upon sale of the business is also unknown. Pulling all of your funds precipitously and without notice is unusual, and for that reason it seems there is another side, the bank's perspective, to the story. Regardless of the right or wrong of the bank's decisions, talk to a lawyer to find out if you have any grounds for appealing to the bank that it reconsider all or any part of its actions.
Published on BankingQuestions.com 10/15/09
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