Hi, everyone:
One of my loan is with a Lender, Interstar, via a broker of Credit Mortgage.
On July this year, this loan is refinanced and is being moved to CBA in order to buy another property. Thus, CBA and my solicitor advise Interstar that the loan is scheduled to be discharged on 4 August 2003.
However, due to the purchasing property is not owned by the vendor straight away, it is from a Will of his mother. So, it is going through High Court and still not pass the title to his name yet. So, the settlement is not done on schdule. It is still on pending until today.
On 13 Nov 2003, I received a letter from Interstar saying a total of $4,142.53 is in arrears since 12 August 2003. And the higher interest rate applied from 14 August 2003 due to "we de-activated your Direct Debit Authority which was confirmed to your appointed agent requesting the discharge". And "It is the responsibility of your appointed agent to request your Direct Debit Authority to be reactivated".
This is very shocking news to me as I have so many loan accounts. I really have no idea about default interest rate being charge, no notice, no statements from Interstar.
I immediately paid off the arrears of A$4,142.53. And request Interstar to refund all default Interest charged based on:
1. Stop debiting loan repayment from my banking account is not from my or my agents' instructions.
2. I am never informed or aware of such default interest charged. No letters, no phone calls and even don't have a loan statement from many months.
3. I am not even informed how much of my default interest charged in the letter.
Today, Insterstar sent me a letter and declined my request based on:
1. The terms and conditions booklet, your loan agreement, and Memorandum of Common Provisions of the Mortgage clearly explain when the default interest will be charged, how the calculations are done and amount of interest charged.
2. A PIN number was issued to you on 2 September 2001 to access your loan accounts on the Internet and ensure that your loan instalments are being maintained.
3. A facsimile was sent to the Commonwealth Bank and to Strategic Alliance Mortgage on 4 August 2003 advising that "On the basis of your discharge request, we have deactivated the Direct Debit drawings. If settlement is not completed by the due date, please advise our office so that we may re-activate teh Direct Debit drawings."
In this issue, I never read through Terms and Conditions. I don't know why they can't give me the figure of default interest charged. As to Internet, I even forget what is the account number until I spent one day to check through some documents.
Could anyone please advise me if it is fair for Interstar to charge me default Interest rate based on their arguments?
If it is not fair, where should I complain to?
Regards
TGP
One of my loan is with a Lender, Interstar, via a broker of Credit Mortgage.
On July this year, this loan is refinanced and is being moved to CBA in order to buy another property. Thus, CBA and my solicitor advise Interstar that the loan is scheduled to be discharged on 4 August 2003.
However, due to the purchasing property is not owned by the vendor straight away, it is from a Will of his mother. So, it is going through High Court and still not pass the title to his name yet. So, the settlement is not done on schdule. It is still on pending until today.
On 13 Nov 2003, I received a letter from Interstar saying a total of $4,142.53 is in arrears since 12 August 2003. And the higher interest rate applied from 14 August 2003 due to "we de-activated your Direct Debit Authority which was confirmed to your appointed agent requesting the discharge". And "It is the responsibility of your appointed agent to request your Direct Debit Authority to be reactivated".
This is very shocking news to me as I have so many loan accounts. I really have no idea about default interest rate being charge, no notice, no statements from Interstar.
I immediately paid off the arrears of A$4,142.53. And request Interstar to refund all default Interest charged based on:
1. Stop debiting loan repayment from my banking account is not from my or my agents' instructions.
2. I am never informed or aware of such default interest charged. No letters, no phone calls and even don't have a loan statement from many months.
3. I am not even informed how much of my default interest charged in the letter.
Today, Insterstar sent me a letter and declined my request based on:
1. The terms and conditions booklet, your loan agreement, and Memorandum of Common Provisions of the Mortgage clearly explain when the default interest will be charged, how the calculations are done and amount of interest charged.
2. A PIN number was issued to you on 2 September 2001 to access your loan accounts on the Internet and ensure that your loan instalments are being maintained.
3. A facsimile was sent to the Commonwealth Bank and to Strategic Alliance Mortgage on 4 August 2003 advising that "On the basis of your discharge request, we have deactivated the Direct Debit drawings. If settlement is not completed by the due date, please advise our office so that we may re-activate teh Direct Debit drawings."
In this issue, I never read through Terms and Conditions. I don't know why they can't give me the figure of default interest charged. As to Internet, I even forget what is the account number until I spent one day to check through some documents.
Could anyone please advise me if it is fair for Interstar to charge me default Interest rate based on their arguments?
If it is not fair, where should I complain to?
Regards
TGP
