CLEVELAND -- Foreclosures aren't the only problems facing homeowners.

A newly filed lawsuit will now challenge a Cleveland bank's decision to cut home equity lines of credit, reported chief investigator Duane Pohlman.

AmTrust suspended credit to countless homeowners, citing a drop in home values across the area.

Home equity is a credit lifeline during these tough times and cutting it off can be catastrophic.

At the center of the lawsuit is a critical question: Can a bank freeze off equity lines of credit without ever re-appraising your property?

Don Saunders, a Bedford city councilman, tapped his home equity line of credit to remodel his kitchen.

"I had all the walls torn out and I was going to have the cabinets resurfaced, some new countertops put in and update some of the electrical," said Saunders.

But the work came to a screeching halt almost as soon as it began.

"The first three checks that I wrote off the line of credit... bounced," he said.

Cleveland-based AmTrust Bank sent a letter telling Saunders his equity line was suspended because of a decline in home values across the entire area.

But Saunders said he's made major improvements to his house and said his home value has actually gone up.

"I think it was a dirty trick to pull doing this," said Saunders.

Tom Merriman, a former Cleveland investigative reporter who now practices law, agrees.

"Duane, actually, 14 years of investigative reporting, it's the same thing. It's trying to fight for people who have been a victim of injustice by a large institution," said Merriman.

This is Merriman's first case since leaving TV, a class action lawsuit against AmTrust for suspending lines of credit to countless area homeowners, credit that homeowners paid an annual fee to get.

"They're kicking in your teeth and they're holding on to your wallet," said Merriman.

Saunders said he'll have to scale back and remodel his kitchen on his own now.

When asked for a comment, an AmTrust representative said the bank does not comment on pending litigation.

For more information, go to www.landskronerlaw.com.