Bank paid out wrong loan on settlement

hi all

my Bank mucked up and paid out the wrong loan on settlement of a property I sold. And now I have learned they also have mucked up the offset for the last 8 months, had it pointing at the wrong loan...

Obviously I have lodged a dispute with them, it's only been a week since settlement, but just wondering if anyone out there can shed some light on how long this mess will take to sort out? So far no indications on timeframes and no direct contact from the assigned resolution officer :(

my god I dont know why I didnt change banks after the last version of settlement when they drew down my mortgage twice and left me with no money for a whole weekend!!!

I won't say which bank just yet in case I will get in trouble with the mods...

thanks for any advice, very stressful and annoying to have a loan exist for a property I no longer own!

jerkygirl
 
Do you have a copy of the mortgage discharge form? This should show the account number and other instructions for the discharge.

Were the loans cross collateralised? This sort of problem can be a direct consequence of bad structuring.
 
Mod's don't care if you bank bash, just don't talk crap about brokers on the forum.

Depending on the bank they should be able to rectify the whole situation, I've seen it happen similar before was a mess for the back office staff to clean up. But has to be done, usually pretty messy but end result it usually what it should be.

Best of luck.
 
I recently received a cheque in the mail from one of the big banks who didn't link my offset to my home loan (although it was stated that it was on internet banking). it was months before I received a response and at least another month before I was reimbursed.
 
I recently received a cheque in the mail from one of the big banks who didn't link my offset to my home loan (although it was stated that it was on internet banking). it was months before I received a response and at least another month before I was reimbursed.

Did you ask for the working out? Are you sure they didnt short you?


pinkboy
 
Thanks, the loans were crossed, and yes probablyy how it was confused..just kicking myself for not asking specifically when i called prior to settlement to see everything was all set! Shouldnt need to do that, but I wish now I had.
Beachgurl and Brady I hope they can do it in a month...that wouldnt be so bad. Just a bit unnerving as is.

thanks
 
I don't see how this happened.

When you filled out the forms instructing them where the money should go it should be straight forward.

Did you keep a copy of the form? I sent my solicitor a copy also so as to avoid any issues as my last one was quite complicated (swapping security plus closing an accout, and the extra going into another account.


With the offset account, wouldn't the original contract paperwork show that?
I found that it's very important to read all contracts. When I refinanced a few years ago all my loans were stand alone. When I got the contracts all properties were listed on all loans (thus crossing all of them). The broker assured me they weren't crossed:rolleyes: but I made her redo them. :p
 
It happened to me once, and they also charged me the termination fee as they closed the fixed loan instead of the var. i rang and explained to them. They fixed the problem within a few days and reversed the fee.

I hope your problem will be resolved soon.

ta

Anne
 
I've sold a property with the bank, CBA, not discharging a LOC.

I kept it open for years, but closed it eventually.
 
Just an update, bank have now fixed the issue with the loans, and have been been generous enough to refund me the interest accrued on my offsetted loan for that period without taking that back from the incorrectly offsetted account if you can understand what I'm saying! :)
happy enough now, but definitely will be more vigilant next time I'm doing a settlement...
 
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