Palisades Fire Victims Face Financial Setback from Bank’s Unexpected Move
Homeowners in Palisades Fire Burn Area Angered by Bank’s Decision
The devastating Palisades Fire that ravaged a 23,000-acre area in Mandeville Canyon has left many homeowners shaken. However, for Lisa Pelton and her neighbors, the aftermath of the fire brought an unexpected surprise – a notice from their bank informing them that their home equity lines of credit (HELOCs) were being slashed.
Unfair Reductions
Lisa Pelton was appalled by the decision made by City National Bank to reduce her HELOC by $50,000. Her property, like many others in the area, remained untouched by the fire. The bank’s explanation for the reduction was that the properties had “declined significantly” in value due to the wildfire.
Questionable Timing and Motives
While it is understandable that financial institutions aim to minimize their exposure to risk after a natural disaster, KTLA consumer reporter David Lazarus questions the timing and haste of City National Bank’s decision. “It just cut first and asked questions later,” he said. This lack of due diligence has left many homeowners feeling vulnerable and concerned about their financial security.
A Lesson Learned
Lisa Pelton’s determination to fight back against the bank’s decision is a testament to the importance of standing up for oneself, especially during difficult times. As David Lazarus noted, “If you don’t step up and defend yourself, nobody will for you.” This case serves as a reminder to homeowners in similar situations to be proactive and assertive when dealing with their financial institutions.
City National Bank’s Response
After Pelton’s phone call to the bank, City National Bank eventually reversed its decision and fully restored her HELOC. While this outcome may have been satisfactory for Pelton, it raises questions about the bank’s initial response to the situation. The incident highlights the need for banks to strike a balance between minimizing risk and treating their customers fairly.
A Cautionary Tale
This story serves as a cautionary tale for homeowners facing similar situations. When dealing with financial institutions after a natural disaster, it is essential to be vigilant and proactive in protecting one’s interests. By doing so, individuals can ensure that they receive fair treatment and are not taken advantage of during their time of need.
