Fixed Term rolled into another Fixed Term

I got a Fixed Term loan that was due last Friday. I got a letter saying they have rolled it into another fixed term loan for the same period.

WTF.

I am with Comm Bank. This never happens with them, they roll it into a variable rate until you decide what you want to do. I am more than happy with this and agree with this approach.

The loan I am having trouble with is with NAB. They have rolled it into a new fixed term loan. As far as I am concerned, I have not signed anything, nor have i agreed to a new fixed term loan. I am trying to sort it out now, but their response today has been poor.

I did nothing, as I assumed (as with Comm Bank it goes to variable) that i did not need to do anything.

Has anyone else had this issue?
 
I guess it's possible that the bank made a mistake. They're known to do that from time to time but I'd suggest the first thing to do would be to find out exactly what the story is. Talk to your broker / banker (can you elaborate on the 'poor' response?) and go from there.

First thing that came to mind, though, is to wonder if it is possible that you may have signed and agreed to the roll-over when you took out the original loan?

It never fails to surprise me how few people actually take the time and effort to read and understand the loan documents. How much money are we talking about here? Making assumptions is a little dangerous in some circumstances.
 
i'm with westpac, loan expires in 1 month
got a letter today outlining my options, and saying that in 1 month it will roll to variable (although i will still need to contact them as they left repayments the same, and i want to completely restructure my loans).

you sure you didn't get any letter saying it will roll into another fixed?
 
Update

My loan was fixed for 10 years. They rolled it over for another 10 years as I had not responded to their letter. I was overseas at the time.

They say it was a condition of the contract that if they hear nothing they will roll it over for another 10 years. I told them noone explained that to me at the time of the signing.

I also told them that morally that is not a good business practice. They should always make these loans convert to variable if they do not hear from the customer. I told them i was prepared to sign up for 10 years, 10 years ago NOT now.

The outcome is that it will be converted to variable with no break costs.
 
Hiya Toony

Pull the contract........and check that, tis unusual, but then, hey its NAB .........

Then insist on a variation, if its not forthcoming chase the Banking Ombudsman, I reckon this puppy has legs regardless of contractual "obligation".

ta
rolf
 
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