You have to love this story (in a compassionate way). From the Consumerist Blog
Bank of America told this couple that their house would go into foreclosure on Christmas Eve, which came as something of an anti-Christmas Miracle to them considering they had never missed a single mortgage payment.
The problems started when the couple looked into refinancing their home and asked the BofA loan specialist for the "cheapest" option available. That rep tentatively put them in the Federal government's "Making Home Affordable" program, which was developed to help people who are behind on their mortgages.
The couple decided not to use that refinance option but that rep's action put on their credit report that they were seeking a loan mod and sent out a credit destroying blast to all their creditors. Their credit card limits were reduced to $18,000 from $30,000, all their credit card APRs were jacked up to universal default levels, and other creditors started shutting down their accounts.
Only after escalating through several tiers of Bank of America were they able to get the bank to promise to try to fix their credit lines. The couple will have to go each creditor individually to try to get their lines of credit reinstated. The foreclosure action is still pending. They have hired a lawyer to try to collect damages and prevent foreclosure, thus illustrating the two major principles of resolving hardcore customer service issues: 1. Escalate and 2. Get a lawyer.