Bank Error in your favour collect....

[TommyR]

Hi All,

Well I don't really know where to start with this tale of confusion, but it began about last October when we sold an IP lets call it property A which was cross collateralised with Property B. At settlement the banks solicitor turned up with the paperwork for Prop B, so settlement was delayed a few days until the the correct papers were obtained. A partial discharge of the mortgage took place and we were left with a mortgage of 150k on property B.

At this stage everything is in order, until about 20 Dec we receive a registered letter containing the unencumbered title to property B. I decide to do nothing until after Christmas - at this stage we have an unsecured loan from the bank of about 150k.

In the meantime we sell another IP property C and refinance with another bank properties D & E. The bank manages to lose the title to property C en route to their solicitors so this delays settlement while a new title is issued. At this stage the settlement of C and the refinance of D&E are now scheduled for the same day.

This is where things start to go really awry, they obviously can't cope with more than one thing at a time.
Property C is settled and instead of discharging the mortgage they pay all the funds to us 200k too much!
Properties D&E are refinanced with no problems, or so I thought!
Today the payment for the loan on property B is due to be paid but I find they have canceled my direct debit. On ringing them they tell me that is because I have now paid the loan off(I haven't) and in fact there is a credit balance of 173k and would I like them to send me a bank cheque. I try to explain that a mistake has been made but at this stage they are insisting I don't owe them anything. I have insisted that I haven't made any payment and at this stage they have agreed to, reluctantly I might add, re check and get back to me on Monday
I am sure they will find the refinance funds for D&E have been credited twice and they should sort it out, I hope
Then I'm going to tell them about the other 200k!
To summarise all this if I hadn't told them I would have 529K of their money and I don't think they would have been any the wiser - and in fact as of an hour ago they are still insisting no error has been made.I think if their position hasn't changed by Monday I might redraw the remaining 329k and let them come to me

Tom

 

[Perp]

Wish my bank would make mistakes like this Nah, I'm sure they'll figure it out in the end, but it's still staggering that this can happen with today's computerised systems and what I had assumed were comprehensive checks and balances.

I remember about 12 years ago the bank had charged me an incorrect interest rate, and we had to recalculate a six-month period in order to adjust the current balance. During that 6 month period I'd made a voluntary additional repayment of $2,000 - which was money that I was aware of at that time of my life I had a branch manager tell me that my $2,000 deposit didn't make any difference to the final balance, we should just simulate that 6 months as though we were making regular payments and paying the lower interest. I managed to convince him that it did make at least $2,000 difference actually ($2K plus the interest on that amount), but it staggered me that it took more than a few seconds for him to realise that what he was saying was ridiculous.

 

[TommyR]

it's still staggering that this can happen with today's computerised systems and what I had assumed were comprehensive checks and balances.

Yes, after today I wouldn't be surprised if there was a weary old clerk bent over an inkwell, ledger and abacus!

Tom

 

[asdf]

Yes, after today I wouldn't be surprised if there was a weary old clerk bent over an inkwell, ledger and abacus!

Tom

How you are mistaken Tom. Banks don't hire brain surgeons, they prefer monkeys who can press buttons, follow processes and procedures, ask no questions and offer a nice big smile to clients when things stuff up. And by gosh they smile so much, their cheeks are virtually falling off their faces..

 

[ianvestor]

Tom, please make sure your record as much as possible of your contact with the bank. If possible even record phone conversations so that you have a record of what you told them and when you told them.

If you did draw down the funds and let's just say you didn't spend it but you earned interest on it, they might be nasty enough to come after the interest too... that's when you pull out your records and show them that you informed them about the error previously.

 

[sailor]

Tom, please make sure your record as much as possible of your contact with the bank. If possible even record phone conversations so that you have a record of what you told them and when you told them.

If you did draw down the funds and let's just say you didn't spend it but you earned interest on it, they might be nasty enough to come after the interest too... that's when you pull out your records and show them that you informed them about the error previously.

And I would also confirm the phone conversations by email, so that you have some paper records as well.

 

[crc_error]

they might be nasty enough to come after the interest too... that's when you pull out your records and show them that you informed them about the error previously.

if they come for interest, just ask them to produce the loan agreement you signed!

case closed.

 

[peastman]

I also have had a bank error in my favor.
Back in 1999 we did an extension to our ppor. The builder wanted a progress payment which the bank paid but never added it to our loan. I spoke to a friend who used to be a lending manager for the same bank who told me that if they had not found it within the first 12 months, they never will. His comments about the mortgage centre, "There hopeless and just dont think".
Its been 9 years now, so I think I am 10K better off.

 

[Xenia]

We also have had an unknown $10,000 in our bank account come from no-where. At first we thought that it might relate to a property that we are managing but it was odd that it landed in our personal account and not the business or trust account.

It's been about 2 months now and the bank has no idea where it came from
In addition someone is sending us $80 per week through ezydebit and they have no idea who this person is either???

We've had a $12,000 check come from the ATO a few years ago which they said was a child care rebate and we were entitled to some money back (child care costs us $50 per child per day). We were surprised but happy that we were entitled do something back! One year later they said they made a mistake because they looked at only our individual income and not what was earned through trusts, businesses and properties. We were entitled to zero benefits and had to pay it all back plus $500 interest for having it in our account for a year

We didn't want to devote any time or energy to the situation to argue with the ATO, I'm a person that just likes to focus on what I'm doing and focus on making money rather than use my time to save money so we just paid the whole lot back with interest and that was the end of it!

I'm dreading what the above unknown money is going to cost us once it is discovered.... by someone....

 

[kissfan]

We also have had an unknown $10,000 in our bank account come from no-where.


In addition someone is sending us $80 per week through ezydebit and they have no idea who this person is either???

Now thats what I call passive income

Regards
Marty

 

[peteb]

These days with internet banking , BSB , account numbers and banks don't validate if they are correct ... then sometimes the wrong person will get the transfer.
Only if the account number and BSB are invalid will it default and not go any where .... but if I put in a valid BSB and account number and transfer it to you then it will go to your account ...

 

[angela]

I've just had the first interest payment on a new IP deducted from my account this week and it is about $500 less than it should be.
I'm sure they will pick up on it soon enough

 

[josko]

To cut a long story short:
About three years ago I was given an extra $50,000 in my LOC. I had three subaccounts and was closing one which was a property refinance to another bank. I had to speak to about three different bankers to explain to them what to do and somehow they completely confused themselves and I ended up with an extra $50,000 to spend.

So I bought another property!