Help - bank mistake

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From: Lucky Man


I am writing to seek some help from this forum. I have one ip which i recently refinanced with another bank, called New Bank (not the real name).

New Bank agreed to payout the mortgage due to the previous bank of $250,000 and then issue me with a new LOC for $250,000 secured against the property which is valued at $300,000. In other words, I was to owe New Bank $250,000 under a drawn LOC.

When the loan was settled 2 months ago, I noticed that the LOC was not drawn down. In fact, the customer service told me that the $250,000 LOC was undrawn. I went into internet banking and sure enough, i was able to transfer money from this LOC account into other accounts.

The bank had made a big stuff and given me an undrawn loc of $250,000 instead of a drawn loc of $250,000. I hope this is not confusing everyone... but i am trying to work out what i should do.

I am about to buy my second ip and i really want to take advantage of the bank mistake. It has been several months since the stuff up and the bank has not picked up on it. Until now, I have not used the loc at all.

To the mortgage brokers on this site, what are the chances of the bank finding out this mistake if i use the loc funds? To lawyers types am i breaching any laws by taking advantage of this bank error.

Thank you for your help.

F_ingluckyman
 
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Reply: 1
From: Gail H


Don't even consider it. It is almost certainly theft (even if you plan to pay it back) and you could get into serious trouble. I don't know how easily the bank will detect it, but this is irrelevant in my view. If/when they discover it, the consequences for you do not bear thinking about.

(I am a lawyer who does quite a bit of criminal work.)

Gail
 
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Reply: 1.1
From: Mark Laszczuk


FLM,
I agree with Gail. If you take 'advantage' of the bank, you will surely become one F-ing UNlucky Man. Tempting as it is, they'll catch up with you sooner or later. Better to swallow the bitter, but honest pill and inform them of the mistake. If not, not only will the bank come after you, karma will be looking for her piece of the action also. You ALWAYS get what you give in the end. Honesty begets honesty.

Mark
'no hat, some cattle'
 
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Reply: 1.1.1
From: Kellie Dutton


I am with Gail and Mark

They are sure to figure it out at some stage. Consider if you could went out and purchased another property planning on taking 'advantage' of it, they find out when you want to draw it at settlement, you suddenly don't have finance.

Kellie
kdutton@smartline.com.au
 
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Reply: 2
From: Rolf Latham


Hi

While the bank may have made a mistake, they will catch up on it sooner or later.

Not unlike a mistake deposit of say 250 000 to your savings acct they will want it secured or want it back.

Hardly worth the stress.

Earn some brownie points by pointing out the error in their ways. I know which bank i is too cause they do this reasonably commonly.

Ta

Rolf
 
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Reply: 2.1.1
From: Mike TheBloodyIdiot


Thank you guys,

Although I do not have time for this, I could not help it.

It was like travelling back in time and space - I really feel like I am watching Communist Party Forum - such an unanimous support...

Ironically, I agree that if FLM touches even a cent from those $250K it will constitute a theft, and will mean big-big troubles to him.

But on the other hand I am being chased by strange vision. I see FLM putting his own money in his troubled LOC and spending them (his own money). Many times. In and out. In and out.

Then I see him going to "New bank" requesting a statement (printed on their letterhead). Statement shows $250K available for withdrawal.

Then I see FLM approaching the other lender telling that he wants to buy another IP. Lender of course asks FLM to show funds for deposit and costs. If FLM shows the statement - "I have got $250K available for withdrawal on my LOC", will he be lying? Of course not. Will a prudent lender refuse a loan to the man who has quarter of a million cash in his account? Mmmmmmmm........

There will be probably third lender who gives FLM personal loan to cover deposit, cost of purchase and reno costs.

Then usual scenario - settle, renovate, revalue - i.e. get funds to purchase another IP. And another one. And another one... Providing of course, all other variables are right.

Main question - when FLM will be stopped on his way to unlimited wealth. I do not know, because he did not provide crucial bit of info, namely: do they charge him correct amount of interest. If they do - answer varies from "not very soon" to "never".

If they don't - answer is "any moment from now".

Dare I ask a stupid question - If you guys see a gold nugget on the ground, will you bend over and pick it up or will you kick it away?

Cheers,

Mike
 
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Reply: 2.1.1.1
From: Tibor Bode


Hi Mike,

I was wondering where were you. Currently my friend and myself have fun with the absolute stupidity of which bank and its employees and lawyers, etc, still I have to agree that this gold nuggets if picked up might be a bit hard to chew on. If LM want to have long term dealings with financial institutions, better to be straight and let the idiots know about that they screwed up (as usual).
Maybe a positive suggestion to the manager could establish a good long term contact which will pay back much more that this one without having any bad night sleep over it.

Just my 2c as usual.

Tibor
 
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Reply: 2.1.1.1.1
From: Mike TheBloodyIdiot


Tibor,

I am still wondering what you were doing at school (mate, are you from Hungary or Yugoslavia?).

If you were listening to your teachers, you would remember this quote from your best friend Karl Marx: "...There is no such a crime the capitalist would not commit to get 100% profit..."

I am offering you the way wher there is no theft or fraud can be proven - just a little bit of using the situation to your advantage - and you are still not happy.

Make yourself clear - do you want to be a capitalist or not? :)

BTW, I keep away from which bank for 6.5 years now (I am in Australia 7 years now). In 6 months I was with them I had so many interesting things to tell, that it would take 6 years of talking.
The most interesting thing, though happened to my mate. They credited his account with $20 million (instead of $200 he deposited by cash) - somebody just took a nap on a "0" key. Ironically he used this account to save money, not for everyday transactions, so he has not checked balance for couple of weeks. One sunny day very curious people from Federal police knocked on his door being very interested where he got $20 million in cash. They started to reach deep into their pockets for handcuffs when newly created multimillionaire was suddenly lost for words.

Lucky we are in Australia. In USSR you would be first knocked on the head and handcuffed, then put into the cell with criminals for a couple of days, and only after that you would be interrogated.

Cheers,

Mike-TBI
 
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Reply: 2.1.2
From: Rolf Latham


Whatever are you on about Robert ? I never name things or institutions.

Ta


Rolf
 
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Reply: 2.1.2.1
From: Tibor Bode


Mike,

I am from Hungary and yes I did miss out (as much as I could) of those teachings. I am a capitalist, but not at any price. Firstly, I am still a human being and while financial well being is a very important part of my life, it is NOT the most important. Hope this
clarifies my standing point for you.

Your example was a definite "A Current Affairs" or Today Tonight" material and heard similar stories in the past. Unfortunately any company is just as good as its employees. And when the shareholders profit (meaning how to fill the MD and senior management's own pocket) is the primary motive, usually the moral and the service goes down. Seen it too many times. Maybe one day one of these management gurus will try to analyse companies who are really successful over a long term, what is their secret. The results will be quite interesting and might make some MDs think, but I won't hold my breath.

Tibor
 
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Reply: 2.1.2.1.1
From: Felicity W.


Tibor,
There have been plenty of books written on positive managing styles and customer service and you name it, it's out there.
Unfortunately there's a difference between someone writing it, and people actually doing it.
Just ask my husband, a very frustrated manager!
Keep smiling
Felicity :cool:
 
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Reply: 2.1.2.2
From: Tony Dixon


Rolf wrote:
>Whatever are you on about
>Robert ? I never name things
>or institutions.

Is that an emphasis on "institution" Rolf???

Tony
 
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