This is not new news but is very pertinent.
I had disability insurance with my mortgage. When I became disabled (4 and 1/2 years ago now) I no longer had any income, just mt wife's. After several YEARS of discussion with a particular Citi rep by phone, things had reached a critical point. In all this time I had been repeatedly assured that I had NO disability insurance.(I needed to get the proper forms to file from them, else no claim could be made).
After Citi had decided to foreclose and would not allow anyone to buy the property from me or assume the mortgage....I contacted an attorney. He advised me that I should have filed my disability insurance, why hadn't I done so? I contacted Citi on this AGAIN.....I could not speak with the agent who had been handling me. It took 2 or 3 days (I no longer remember which) before I could speak to him...He denied ever speaking to me at all!!!!
After bringing this back to my attorney he asked me: "Did you record your telephone conversations with this man?" What? Tap my phone lines? Couldn't this be considered illegal, or would the bank knowingly allow themselves to be recorded?
Anyway, he told me that the bank would deny my ever having asked for a claim, and it would boil down to my word against theirs. A judge would most likely refuse me, maybe a 15% chance of winning IF it would be heard. I would have to pay him $150 per hour. (Several attorneys said almost precisely the same thing). Since I had not filed in the time period allowed..my negligence is at fault, NOT the bank for not allowing me to file, all my years of telephone negotiation withstanding, I had no proof!!
Liars, thieves and criminals..Do not trust them at all. Signed contracts mean nothing if you are small and the risk of your beating them are figured as negligent!