Approximately 2.5 years ago I opened a home equity line of credit with Washington Mutual, the line of credit was for 100k. I used it once for a 2k purchase. The current balance is $732. I've now sold my home and discovered WAMU wants to charge a "cancellation" fee, the fee is either 1% of the current balance or $500, whichever is greater. The issue I have, is that with the current housing market and drastic plunges in home values, my property's value has also dropped, which triggered WAMU to slash my available line of credit to nothing more than $10k, which is not what I initally agreed to. Now WAMU wants to stick to the "original" contract and charge a $500 (75% of my balance) cancellation fee. I've called to negotiate with a customer service Mgr, Albert Quintero with no success in reducing my "cancellation" fee. I wonder if there are other people out there who may be going through the same thing...I don't mind the cancellation fee, however, that fee is based on the "original" line of credit, which was for $100k, now they've reduced the available line of credit and are "STILL" charging $500 cancellation fee from the original deal...Does this make sense??