Bank Stopped Debiting Mortgage Payments
- Thread starter djsherly
- Start date
djsherly, I have some empathy because I have, in the past, had enough cash sitting in my account that I wouldn't have noticed whether my payments had gone out or not, and I only check statements to make sure that my income has come in, and that I authorised the payments that have gone out. But I don't check that all the payments I'm supposed to make have gone out, if you see the distinction. After I've set up direct payments to debtors, it's their problem to make sure they're getting paid, as far as I'm concerned! 
So I do know where you're coming from, but I don't really see what you expect the lender will do to assist you. It's annoying, but you surely don't expect them to say that you don't have to make the payments.
What you're effectively saying to the lender is: "You didn't stop me from being irresponsible and spending my mortgage payment money on crap, so it's your fault and I shouldn't have to pay!" LOL
So I do know where you're coming from, but I don't really see what you expect the lender will do to assist you. It's annoying, but you surely don't expect them to say that you don't have to make the payments.
What you're effectively saying to the lender is: "You didn't stop me from being irresponsible and spending my mortgage payment money on crap, so it's your fault and I shouldn't have to pay!" LOL
djsherly, I have some empathy because I have, in the past, had enough cash sitting in my account that I wouldn't have noticed whether my payments had gone out or not, and I only check statements to make sure that my income has come in, and that I authorised the payments that have gone out. But I don't check that all the payments I'm supposed to make have gone out, if you see the distinction. After I've set up direct payments to debtors, it's their problem to make sure they're getting paid, as far as I'm concerned!
So I do know where you're coming from, but I don't really see what you expect the lender will do to assist you. It's annoying, but you surely don't expect them to say that you don't have to make the payments.
Hardly. I haven't specified what I would I would like as a resolution.
What you're effectively saying to the lender is: "You didn't stop me from being irresponsible and spending my mortgage payment money on crap, so it's your fault and I shouldn't have to pay!" LOL[/QUOTE]
No. What I think I will be saying to the lender is that under the terms and condition of the loan, a missed payment is an event of default under which you are to advise me and give me 30 days to rectify. In not doing so, you breached your agreement with me. If it was your decision to cease taking payments, then you have also breached your contract with me by not notifying me 30 days in advance of that change. I will also note that a bank's customer has no general duty to confirm the veracity of statements sent to them (Tai Hing Cotton Mills) and I will ask them what they plan to do about this situation.
Finally, if some mistake in your system has caused the payments to stop, then is that not an act of negligence on your part?
I have no idea how this line of argument is going to pan out but whether or not the perception is that I am irresponsible or not is, frankly, a moot point. I
I have a contract with the bank. I have done nothing to resile from my commitments and today I am in a financial position worse than what would have been the case had the payments not ceased.
There is nothing that I have positively done to breach the contract with my lender, so I fail to see how this situation can be perceived as my fault.
And for that, do you expect me to suffer?
As to where the money has gone, you really shouldn't speculate as to where it is or has gone. The truth may surprise you. LOL.
In the end, me posting this thread is more cathartic than anything. I appreciate everyone's point of view, but the general holier-than-thou attitude from some doesn't really add to the quality of the conversation. This final comment is not directed specifically at the poster to whom I reply. It's an expression of my general frustration with the quality of (what is generally good) responses generated by discussion here.
I put in the LOL at the end of my last post because I'm not holier-than-thou about it at all; I've been in a similar situation in the past.
I did misinterpret your position, though, because I missed how you're worse off. Now I'm thinking that you're saying that you're worse off because the funds coming from the offset effectively attract 8% (say) interest, whereas the increased amount in your transaction account (if there had been any
) would only be about 2%, so you're 6% worse off on the total of the year's payments, is that right?So if you're paying, say, $4K per month in payments, by coming from the offset rather than your transaction account, you could (possibly) have earned 2% of $48K = $960 in interest in the transaction account, but you've had to pay out 8% of $48K = $3 840 in extra interest? So you're worse off by $3 840 - $960 = $2880?
I think you could possibly mount an argument for that $2,880 in additional interest that you've paid.
As an aside; why not get all your income put into, and make payments from, the offset account anyway, to minimise interest? Even if there's cash going in and out all the time, most loans are calculated daily and it could still save you substantial interest.
I apologise for misunderstanding the nature of your concern.
My "skimming" is usually pretty good, but failed me on this occasion. Blah blah blah blah. You versus the bank and its silks. Good luck.
Yeah but mate, this is a messageboard, your gonna get all types of replies, how boring would life be if everyone had the same response anyhow!
What a sorry world this world would be if we simply accepted things as they are or didn't bother to do anything. I don't know what to expect from the bank but if you think it's not worth asking the question....
I won an argument with a bank about interest charged - to the extent of about $1,000, 15 years ago - by taking a print-out of an Excel spreadsheet into my local branch and showing it to the branch manager. So I think it's worthwhile at least asking the question; banks aren't always so intransigent as many people - including Hooray, obviously - might think.
Recently I forgot to update a regular direct debit to the new, higher amount (a leftover from IR increases, could have argued it down, but I'm okay with keeping a buffer). Anyway, the bank sent me a letter within two weeks informing me I hadn't paid enough. In short, I do think they had the responsibility to inform you they were not being paid, and unless they can prove you changed the direct debit in agreement with them, I think you could argue for your mortgage to be recalculated to what it 'should' be provided you can make up the payments now as a lump sum. If not, maybe you can come to a compromise.
We personally went for an embarrassingly long period not realising that the offset on our loan wasn't being taken into account to reduce the interest payments. This was mainly because we never kept much in there, and only really began to wonder when we transferred a large deposit earned from working overseas, which seemed to make no discernable difference to the interest payable. When we brought this up, the bank acknowledged its error and credited us the interest we should have had deducted over the term. So it can be done
We personally went for an embarrassingly long period not realising that the offset on our loan wasn't being taken into account to reduce the interest payments. This was mainly because we never kept much in there, and only really began to wonder when we transferred a large deposit earned from working overseas, which seemed to make no discernable difference to the interest payable. When we brought this up, the bank acknowledged its error and credited us the interest we should have had deducted over the term. So it can be done
oi-vay.
dj - banks are stupid in service but smart in operations. Find out why they didnt take the repayments out, if they didnt set up the direct debit at settlement after you signed the form, then if you have the $ to come up with the missed payments over the last year then you might have a win.
Who set the loan up for you - a bankie or a broker? Go back to them and ask why didnt this happen. Posting this on SS isnt going to get you anywhere (not meaning to be rude or offensive to you)
dj - banks are stupid in service but smart in operations. Find out why they didnt take the repayments out, if they didnt set up the direct debit at settlement after you signed the form, then if you have the $ to come up with the missed payments over the last year then you might have a win.
Who set the loan up for you - a bankie or a broker? Go back to them and ask why didnt this happen. Posting this on SS isnt going to get you anywhere (not meaning to be rude or offensive to you)
What sort of payments are we talking about, because i think i'd work out in a few days if my interest was not being deducted.
I always check. Why? what if they were taking to much or you had unauthorised transactions.
Don't want to bag you out but 12 months that is a long time...and do you have a budget, i know exactley how much money i can take out of my account every week.
I always check. Why? what if they were taking to much or you had unauthorised transactions.
Don't want to bag you out but 12 months that is a long time...and do you have a budget, i know exactley how much money i can take out of my account every week.
