Local man claims loan officer falsely promised interest rate

A Port Neches man has filed suit against his bank, saying it promised to grant him an interest rate of half the actual interest rate on his mortgage. 

Shad K. Swanzy claims a loan officer at Orange Savings Bank promised him an interest rate of 4.625 percent on one loan and another rate of 8.25 percent on a second loan. In order to be approved for the loan, however, the officer told Swanzy he would have to make repairs on his home, according to the complaint filed May 29 in Jefferson County District Court. In turn, Swanzy spent $9,000 on repairs, the suit states.

Later, Swanzy learned that the repairs did not have to be made to be approved for the loan, the complaint says. He was also misinformed about the interest rate on his loan, which was nearly double that promised to him, he claims.

Swanzy alleges breach of contract, negligent misrepresentation and violations of the Deceptive Trade Practices Act against Swanzy.

He is seeking actual and exemplary damages, plus attorney’s fees, costs, pre- and post-judgment interest at the highest rate and other relief the court deems just.

Brandon P. Monk of The Monk Law Firm in Port Arthur will be representing him.

Judge Donald Floyd, 172^nd District Court, has been assigned to the case.

Case No. E194-390