On the July 23, 2012, I filed a complaint on housing discrimination with the US Department of Housing and Urban Development. On housing discrimination, HUD writes:
Housing discrimination based on your race, color, national origin, religion, sex, family status, or disability is illegal by federal law. If you have been trying to buy or rent a home or apartment and you believe your rights have been violated, you can file a fair housing complaint.
U.S. Department of Housing and Urban Development
In Switzerland, one has to refinance one’s mortgage every few years. Yet, as a direct result of US policy, the following banks personally told me that they will not refinance my mortgage since I am a “US Person”:
- Raiffeisen
- Bank Coop
- AXA Bank
- Migros Bank
- NAB
- Valiant Bank AG
- SwissLife
- Hypothekarbank Lenzburg
- Swissquote Bank
- FinanzZentrum Jungfrau AG
Concerning my mortgage history, the current lender wrote:
All experiences with [SwissPinoy] and the bank have been very positive. There has never been a problem with any of their business relations. We are very pleased with all of our dealings with [SwissPinoy]. Our experiences would indicate that there is a high degree of integrity and responsibility in the way [SwissPinoy] conducts their financial affairs. Therefore, we consider them to be respectable, honest, trustworthy and of good standing and repute. This data is based on actual data and experience.
The Swiss government informed me that banks have the legal right to deny individuals mortgages based on national origin. However, since this action is the result of US policy, I filed a complaint with the US Department of Housing and Urban Development. After several days, I received no response and so I called HUD and was advised to call back in about 3 weeks. Today, I was finally able to reach someone and was informed that my complaint was not on file. It had vanished. I explained that I’m probably the only US person in Switzerland who has a mortgage and was advised to resubmit the complaint.
HUD will only help Americans who are harmed by US policy in the 50 States and US territories. Americans citizens who are harmed by the US government in other nations are ignored by the US government and left on their own.
Well, no worries. I’m a US veteran and the US Home Loan program allows veterans to purchase their primary residence.
The VA Home Loan program allows veterans with qualifying income and credit to purchase a primary residence without putting any money down towards the sale price of the home, as long as that sale price does not exceed the appraised value of the home.
US Department of Veterans Affairs
So, I called VA to inquire if they would help me to refinance my mortgage since banks are refusing to lend me money simply because I’m a US veteran. Well, the US Department of Veterans Affairs informed me that it does not help American veterans who are denied mortgages for being US persons as a result of US policy. This shows that the US government is not only willing to harm innocent American citizens who served the country and are living abroad, but that it will then do nothing for them afterwards.
*Swisspinoy, It is probably a total waste of timebut perhaps you might try to file a complaint with the 2 senators and the congressman in the US in the district where you, as a citizen, have a right to vote in US elections.
These legilators who insist that American citizizens living abroad must pay US taxes “since they receive the benefits of US citizenship” need to be put on the spot. Either those residing abroad and paying US taxes should indeed receive this benefit of US citizenship and the legislation that protects their benefits as a veteran, or these legislators should take action to “quit playing dishonest games” and replace citizenship-based taxation with the residence-based territorial taxation of every other civilized country on the face of the earth.
*Roger, I’ve been doing that and so far my “representation” hasn’t responded to anything.
The list of no responses has been getting so long that I created a category today called “no response” under “representation”:
http://expatami.wordpress.com/category/representative/no-response/
The “response” category has one letter in it which received a response from Rand Paul, but he doesn’t officially represent me:
http://expatami.wordpress.com/category/representative/response/
*Swisspinoy, I can’t say that I am surprised. That just goes to show how nobody in Washington really gives a hoot about US citizens living abroad except as a source of money. The only other possibility, and it would not surprise me that you have already tried, would be to try to call on the telephone. I am sure you would not be connected through to the congressman or senator, but you might be able to talk to a member of his or her staff, and ask some pretty tough “why?” questions. I have a directory for 2011 which is reasonably up to date so I could look up staff names and phone numbers for you, knowing the state and the congressional district, or the names of the legislators.
At least telephones on Capitol Hill are still answered by human beings rather than by recordings asking you to punch this or that number.
@swisspinoy By all means, don’t give up refile the complaint anyway, and copy it to your senators and representatives and mention that the original complaint vanished.
*roger conklin, I haven’t called anyone. I prefer written documentation. With a phone call, I’ll probably just hear a bunch of nice words that will become forgotten after being spoken. Yet, with paper, I have something to show. 🙂
@Jeff, I’ll refile the complaint tomorrow.
@swisspinoy, I hope you can solve the problem with your mortgage, but I don’t think there is anything wrong with the US law against housing discrimination not being applied to you in Switzerland. The very reason for the problems described in this blog is that the US wants to apply its laws outside it.
I think the US (and all countries) must understand that they do not have jurisdiction outside their borders, even on their citizens. The distinction between citizen and foreigner is only relevant inside the country, for certain rights and obligations.
@shadow raider
Good point. The US has their cake and eat it too. That we can rely on.
*Swisspinoy, I agree that it is best to have things in writing, but sometimes if you can find somebody in a legislators office who will take your call you can get them to give you their email address and commit to getting a written response to an email “which I will prepare summarizing our conversation and providing additional details.,” that is sometimes an effective way to put the monkey on somebody’s back that may be helfpul in getting a written response where not would otherwise be forthcoming.
And sometimes you might even get more information than you ever expected. For example, I once called Senator Grassley’s office to find out how he had voted on the Tax Reform Act of 1976. He was a first term congressmen back then. The person who I talked to said he did not have that information but he would check the files and get back to me. This he did, and as I expected he had voted in favfor of it. But he also told me that as Congressman Grassley he had been a co-sponsor of that 1976 legislation. This I did not know., but finding it out gave me aa better understanding on why he, in more recent years, has focused on incrreasing the taxes on US citizens abroad. He introduced the amendment to the HIRE act that resulted stacking (everything above the foreign earned income exclusion is taxed at the marginal rate that would apply if there was no FEIE), and has often stated that Congress should abolish the FEIE and that overseas Americans should carry their full share of the tax burden like other citizens. He does not believe that having US citizens living abroad serves any useful purpose in selling American exports.
*Shadow Raider, that’s my point. It is perfectly logical, fine and acceptable for US rules, regulations and policies to apply to people living in the US and this is why the US government needs to explain to banks in Switzerland that US rules, regulations and policies have nothing to do with people living in Switzerland, regardless of national origin
I just filed a request for a letter of recommendation that I renounce my US citizenship from a Congress candidate:
http://expatami.wordpress.com/2012/08/28/requesting-letter-of-recommendation-to-renounce-us-citizenship-from-congress-candidate-keith-fitzgerald/
I’ll follow this up with a phone call and then continue moving up the chain of command, one person at a time.
Swisspinoy, I like your letter. And admire your perseverance.
@Swisspinoy I don’t remember, but I think you may also be Swiss? Have you received anything in writing from Swiss authorities about your mortgage issues? Also, is your bank threatening to cancel your mortage at the next renewal point or now? What about the expenses incurred when moving to another bank?
I wonder if anyone has heard any update about the Amy Webster story (http://genevalunch.com/blog/2012/06/21/swiss-banks-step-up-efforts-to-identify-quarantine-or-avoid-us-citizens/) it seems that they were faced with considerable expense to move their mortgage and that their contract with the original bank was not yet up for renewal (if I read correctly the problems started when they tried to obtain additional financing on one of their properties).
*Jeff, last I checked, most banks don’t publicly state if US persons are rejected. One has to call and ask. My bank is closing the accounts of US persons but said that it will refinance my mortgage since I’m also Swiss. However, most banks refuse to finance the mortgages of Swiss citizens who are also US persons and the situation has been rapidly deteriorating. I don’t know if other banks would refinance my condo or what the cost to switch would be since I’m happy with my bank, even if the interest rate might be a bit higher than others. So for now, I can still refinance, which means that I can be politically active in the US without being forced to renounce US citizenship in Bern.
*Is this the same Amy Webster? http://blog.simplyraw.ch/?page_id=2
Please don’t give up, swisspinoy. As you know I’m buying a house (a first time homeowner at the ripe age of 46) and I thank you for the nice note about it on the Flophouse. Clearly I won’t be able to get a mortgage right now since I am clearly really really sick but, hey, I want to beat the cancer and some day I may just want to turn over that little house in Versailles into a nice retirement place in the south where it’s warm. Hell, I may even try for Casablanca. 🙂 Be a real bummer not to be able to finance it just because I’m an American. So it’s a good fight you’re waging here and if there is anything I can do to help, just let me know.
@Victoria
And if there’s anything we can do to help you, please let us know. Sending you well wishes for a speedy recovery. Thank you for your valued contributions even while you are sick. It can’t be easy, but shows you have a lot of fight in you. You inspire me.
@swisspinoy I believe that it is, here is her Facebook page http://www.facebook.com/?sk=welcome#!/amy.webster.constantin
@bubblebustin, Thank you. You folks already are helping me (and I bet you didn’t even know it). Reading the posts here and the comments keeps Chemo Brain (memory loss, diminished cognitive ability) from taking over. And you folks inspire me to write more stuff as I can – it’s a One Day at a Time kinda thing. God bless.
*@Victoria, thank you for your corageous spirit. It is an ecouragement to all. . You are in my prayers.
*The US policy with respect to its citzens who live beyond the borders of the US can be summed up in a few words. You have all of the obligations and responsibilities that go with being a US citizen, but almost none of the benefits.
You are obligated to file US tax returns and subject to US tax on your world-wide income and you are allowed to vote. But you also have additional obligations that citizens at home do not have. You must file annual FBAR and FATCA reports itemizing your financial assets where you live, which citizens at home are not obligated to do, and you are penalized fiscally for participating in foreign Social Security and deferred-compensation savings plans for retirement. You have no access to Medicare, your ability to maintain a local bank account where you live is either non-existent or severely restricted because of the extraterritorial provisions of FATCA that compel non-domestic banks to have nothing to do with you. US based banks generally will not loan money for purchasing a residence abroad.
And because of your US citizenship you are discriminated against for employment abroad. “US citizens need not apply” is standard language in job opportunities for which US citizens would otherwise be among the most qualified candidates.
@Roger
This is the definition of 2nd class citizenship, of not only one, but two (or possibly more) countries. All due to citizenship based taxation.
@Roger
Spare a thought for green card holders living outside the US. All of the same downsides you mention, but not even the sop of a vote as compensation.
@Watcher, don’t fret about the vote. The problem is that no matter who you vote for, everyone on the ticket is American.
Is it taxation without representation if you can vote? Damn right!
Dear Victoria,
Everything you have contributed here and on your site and comments to many news articles is more than inspiring and more than buoys up all of us here. I want to grow up to be like you (and I’m soon 69!). I wish you peace and strength in your health journey. You are a brave woman and, I’m sure, your actions a great example to your frenchlings.
@Victoria, your views and statements mean a lot to me and everyone here, even if such is not mentioned. The same applies to everyone else too.
@Petros, I used to do some political activism in the US and when I moved abroad, I was so happy that I didn’t have any need or reason to do such anymore, feeling that my views were more compatible with those around me. I used to argue that the $1.5/gallon they paid at the pump was too cheap and they needed to prepare themselves for a $1 or $2 increase. Yet they laughed at me and showed no interest in my arguments. Thus, I came to the conclusion that my interests were not compatible with those of the American majority and thus I was happy to leave America and let Americans have America the way they wanted it. So, I didn’t vote abroad and I don’t really want to vote in the US. I don’t want to tell Americans how they should do their things. Yet, with banks refusing to refinance my mortgage because of stateside Americans, I have no choice but to be politically active in the US as long as I’m still a US person.