Bank won't budge even after legit reason for dishonours!

[Logic]

Wondering if any Brokers here on the forum (and anyone else) can offer some advice on this situation....

Put in an application for a LoDoc with Westpac for Client (he's currently got 3 blocks of land with CBA and wants to refinance). Everything was going fine, bank valuations came back fine but at the last minute, they noticed that there were 5 dishonours on a loan statement for the Client's other property, in Jan, Feb, Mar, Apr and May 2007.

Westpac declined the loan even after explaining the reason for the dishonours.....reason was the previous Broker who did the loan for this Client set up a direct debit system for the mortgage repayments. Broker mistakingly gave Client the Loan bank account details instead of the bank account where the debits were going to be debited from so consequently, each month since Jan this year, the loan would attempt to debit this other account but of course there were no funds in there because the client was manually transferring the funds directly into the loan account. So on paper it looks like he's dishonoured for 5mths before error was noticed but he actually did make all 5 mortgage repayments during this time. Westpac wouldn't budge and said reason was not acceptable and decision to decline the application still stands!

I know La Trobe will probably be ok but rates and other fees are considerably higher so just wondering if anyone knows of another lender who will seriously look at it?
(with decent rates and discharge fees etc) ???

Cheers,

Matt

 

[Simon]

Take the complaint to the Banking Ombudsman.

 

[Medine]

Hi Logic,

Why does that client want to refinance so quickly?

Cheers, Medine

 

[Mofra]

Logic,

Is LMI involved? If so they would decline this in a heartbeat.
The first question they would be asking is if it takes 5 months to solve a problem such as this on a mortgage debt, is there a risk in this happening again? Given the rise in defaults in the past 12 mnths, they now look for reasons to decline a loan rather than assessing each deal on its merits.

Cheers

 

[Rolf Latham]

hIYA

Long Road from here


get the client to obtain a letter from the lender where the late paymnets have been coming from, that they arent late..............

Ta
rolf

 

[jopie]

lol
@
Westpac...

I've spent enough time (which isnt really that much) dealing with them and cant stand it! they drive me nuts

'Ask Once' my ar5e!

 

[Spectre]

I share your pain.

But realistically 5 months is a bit much...

What happened to the bank account statement with all of the dishonour fees.... didnt he open it up as they come out quarterly usually, so he would have had that in 3 months not 5. I mean if I was racking up 35 p/m in fees I'd notice.

 

[GoAnna!]

I had almost identical experience and if the statements are 6 monthly (as mine were) and if the fee was taken out of the loan itself then it can happen with without you being fully aware. In my case I did get the dishonour fees refunded and they appear on the statement.

Just to be on the safe side however I did not apply for further funds until I had 6 months of clear records so in my case I did not have to ever expain anything to another bank.

In this case did the dishonour go into his credit record or is it purely on his statements?

Will the loan decline go on his record?

Is there some pressing reason why he needs to refinance now and so quickly from the CBA loan?

 

[mortgageman]

loan dishonours

Hi Matt,

If you put the loan through Homeside they won't require you to provide loan statements on the other properties. This would be a hell of a lot cheaper than going through Latrobe!

Kind Regards,

Cameron Perry
Director
Perry Financial Strategies

 

[1974Angela]

Hi Matt, totally understand the frustration on this - seems pathetic.
We are currently in a similar situation, with a loan application, the credit check came back with us owing $825, an amount which we disputed with the company involved and never heard anything further about, until this came up on the credit record. The bank we want to borrow from is now demanding a "please explain" and said they will only lend to us at 8.47% as opposed to the 7.57% they first offered us! We currently have 2 mortgages, a LOC and a CC with this bank and no loans/debts are in default - cant understand this situation.
It seems some banks are tightening up on their lending criterias - unnecessary stress if you ask me.

 

[redsquash]

Hi Matt, totally understand the frustration on this - seems pathetic.
We are currently in a similar situation, with a loan application, the credit check came back with us owing $825, an amount which we disputed with the company involved and never heard anything further about, until this came up on the credit record. The bank we want to borrow from is now demanding a "please explain" and said they will only lend to us at 8.47% as opposed to the 7.57% they first offered us! We currently have 2 mortgages, a LOC and a CC with this bank and no loans/debts are in default - cant understand this situation.
It seems some banks are tightening up on their lending criteria - unnecessary stress if you ask me.

So what is the advantage of staying with a bank with blinkers on and no ability to understand reason.
Just Ask them, if you they think that if you are such a high risk that you would be better-off taking all your loans elsewhere. don't speak to any front-line staff but see someone in person who is a state Manger if possible.
If they say yes then I would follow their advise. If they say no then ask them why you should stay?????????????????????????????????????

 

[Spectre]

Hi
These are becoming more and more prevalent

Seems the worst offender for these types of incidents are often your mobile phone companies etc. Many lenders (if dealing low doc) just have a policy of any defaults we will not advance further even if the default is repaid. But generally, if there is mortgage insurance involved it will not be good.

Also if its a larger bank the chance of a 'general' client getting to meet the state manager to complain about a bill they (in theory) should have paid first time around would be unlikely.

There are also issues of timeframes of when these were lodged between lenders.

If one has issues you can Veda http://www.mycreditfile.com.au/home/home_default.aspx who controls your credit file to discuss your options.