Complaint Review: CLC Commercial Capital - Warwick Internet

Re: Report of Predatory Lending Practices
       Commercial Lending Capital, LLC (hereinafter (CLC))
       406 North Main Street
       Corona, CA 92880
Gentlemen:
Pursuant to directions received from the Boston Office of the FBI, I am submitting to you the above referenced Lender CLC for Predatory Lending Practices. The company previously collected $18,574. for upfront fees from my client, Albanese Family Limited Partnership. The fees were to cover the cost of underwriting, appraisals and the subsequent closing of the transaction and would be the only fees involved. Now, CLC
It should be noted that I have been in the lending industry for over forty years and have held senior management and lending positions in banks located in Rhode Island and Minnesota. My last position in banking was President and Board Member of Valley National Bank in Apple Valley, MN. Therefore, I feel I am qualified to recognize an apparent attempt to extort additional fees and to report this injustice that has been experienced by my client. I believe Bait and Switch would be an appropriate term to define the transaction.
 
Whether it is a bank or commercial lending company, there is a fiduciary responsibility to the client involved. In the case of my client, they acted in good faith by paying upfront  fees and expecting the company to be ethical and trustworthy in their quest for financing. In the case of CLC, they were only interested in collecting the fee, ask9ing for more fees  and showed NO interest in securing the type of financing we requested. It was an elongated process that took over six months to receive a commitment that wasnt even close to what they desired. Communication was adversarial in attempting to deal with CLC.
 
A registered letter to Mr. Clinton Davis, Vice President of CLC, requesting a refund of the fee, was returned due to would not accept. 
 
In an e-mail to me, Mr Davis stated that Mr. & Mrs. Albanese would be required to send a letter requesting cancellation of the transaction and request of their refund. They followed instructions and were informed that CLC would still like to do a loan but Anthony Albanese told them the terms were totally unacceptable. The additional fees were beyond exorbitant.
The Letters of Interest (LOI) CLC provided are diametrically opposite of the original request. The LOI to Mr. Albanese DOES NOT meet his request or your original offering. We specifically chose Commercial Lending Capital because we were assured that:
1.       It would be a 10 year fixed rate loan.
2.       An  LTV of approximately 70% was acceptable.
3.       The rate would be 6%.
4.       There would be no fees other than closing, appraisal and other minor  
        costs, which  were all inclusive in the aforementioned upfront fee.
5.       CLC would be paid from the lending source for their fee.
If we wanted a five (5) year loan, we would have requested one and would have closed this loan months ago. The market was flush with lenders offering 5 year deals. CLC was also selected because of a past relationship with Chris Barnes, Loan Officer at CLC, who has subsequently left the company.
Their request for 3% of the loan amount as additional fees and an additional $18,000 on top of the prepaid $18,594 for appraisals is preposterous. We have done our own research in terms of cost of appraisals with other lenders and appraisers and the amounts are ridiculously out of range and we consider this as gouging.
 EVERYTHING CLC requested we complied with and submitted. They wanted additional collateral and it was immediately offered.
 It is obvious that all that was offered does not conform to our needs and it is also obvious that they cannot produce what you originally said they could. This entire process has been suspect.
This is nothing more than a blatant scam to collect fees and not perform. (Bait & Switch?) 
 
Howard
Rumford, RI