Bank Attempts F'closure After Jacking Up Fees On Loan That Was Fully Paid w/ Satisfaction Recorded 5 Years Earlier; Backs Down After Media Intervenes

In Lawrence County, Pennsylvania, WPXI-TV Channel 11 reports:

• A Lawrence County man said his bank began foreclosing on his home, even though he paid his mortgage off. Richard Leaghty said in 2004 he sold his business and then paid his mortgage off in full at National City Bank. Three months later, the bank filed a document with Lawrence County that showed the mortgage was paid off.

• But five years later, after National City was purchased by PNC Bank, Leaghty began receiving bills that said he owed $1,200 on his mortgage that Leaghty and National City said he paid off.

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• Leaghty said the bill was increased from $1,200 to $3,000 to $6,000. After the bill reached its highest, PNC began foreclosing on his home. Leaghty said he turned to Linda Thomas, a housing counselor, for help. Thomas said it looked like an open and shut case. She said all she had to do was show PNC Bank the documents from Lawrence County that showed Leaghty paid his mortgage off, but Thomas said the bank never responded.

• "According to state records the home has been paid for," said Thomas. "The mortgage was fully satisfied. This is a gentleman who is in ill health. He doesn't need this kind of stress and we can't get a response from the lender."

• Thomas said she was able to put a temporary stop to the foreclosure, but the bills and the penalties kept coming. Thomas said she got "fed up" and filed a complaint with the Pennsylvania Attorney General's office and contacted Target 11.

• Target 11 verified the information with Lawrence County and contacted PNC Bank about the situation. A few days later consumer investigator Robin Taylor received an e-mail from PNC that said the situation was resolved. Leaghty said that the same day Target 11 received the e-mail; he received a call from the bank saying that he no longer owed PNC any money. Thomas told Taylor that, "You accomplished in three days what we couldn't do in six months."

For the story, see Target 11 Helps Man Fight Bank's Mortgage Mistake.