Mortgage interest lock problem

Last Wednesday morning I instructed my Mortgage Loan Broker to go ahead and get a rate-lock on a 30 year fixed loan at 6.75% with 1 point. She faxed the lock request to a nationally known lender- let's call them Fed Up. I was happy because I knew interest rates were going nuts, so I felt it was a good deal. At 3:45 pm she received a rejection fax, because of a technical problem. She needed me to sign a letter clarifying the situation. I raced down, and signed the letter at 4:06 pm, but the broker advised me that the bank did not accept loan locks after 4 pm.


The next day, I called her and I was told the best deal was now at a bank we'll call Mellon Head Bank. It was 6.75%, but 1.875 points. I said go for it, although I was not happy.


Today my broker gleefully informed me we got the rate, but it was 2.125 points, not 1.875 as I had been told. She said that the rate request is only valid if the bank doesn't raise the rates before our request is faxed in. When in the hell did the bank raise the rate, I ask? She tells me "Before our request went in". How does she know? The bank confirmed it today. What if it was their rate from this morning, or Friday morning? How would we know?


Here is my question. Why do they call it a rate lock if there is no such thing? Who can I complain to? How can I force them to honor the rate they quoted me?


I feel like I've been raped, and the only bait and switch jobs I have heard of came at the end of the process- like "Gee, we're sorry, you didn't qualify for that rate" 2 days before closing.