G'Day
I have just completed a very arduous file with another Bank (not ANZ)
Murphy was the File Manager with this application. Yep, what could have gone wrong, did go wrong, from Day 1 in September right through to (very delayed) Settlement on Christmas Eve.
However, more importantly, despite repeated written requests from me regarding structuring, the loan amount was right but the LVR was wrong - resulting in the LMI premium jumping from $2,500 to $12,500!
As soon as the loan settled, I encouraged the customer to make a written complaint to the Bank and rang the complaints department myself to find out exactly how they should do this, and then provided the customer with this information plus a Privacy Consent letter authorising the Bank to speak with me about the file
However, as with all things, Caveat Emptor applies.
'firstmillion', you would have been given printed information regarding the loan product - the Simplicity Plus - and what it could do. Leaving undrawn funds in a loan account is quite different from instructing the Bank to draw all funds and to deposit the funds into a non-linked savings account.
You would have provided them with these written instructions for drawdown of the loan.
My customers collected the loan documents from their conveyancer, took them home, signed them, and returned the docs the next day for the conveyancer to use the DX system to return the signed docs to the lender.
These docs were in the incorrect format, so a second set was issued a week later. They then attended the head office of the lender and signed these docs in the foyer.
The Bank's response to the claim that the LMI was calculated incorrectly will depend largely on whether the first set of docs also showed the wrong LMI calculations.
If the first set was wrong, and the customer did not read the documents even though they had them overnight, then the plea that they were under duress (facing rescission of their Contract) when signing the second set will be mitigated. It is called contributory negligence.
At no time until immediately before settlement was the shortfall in funds told to me. As part of the loan had already been funded by this time, it was literally 'too late' to do anything but let the settlement run and try to deal with the situation later.
'firstmillion', as I see it, the outcome of your complaint may not be financial compensation to you - the Bank did what you asked them to do - but simply more staff training as to the choice of words used by the staff when setting up instructions with the customer.
From what you have said, the Branch Officer (sorry, didn't realise that ANZ employed 'girls' - I have only met adults in the branches) alerted you to 'undrawn funds' ('If i keep the money in the bank and did not take it out, i will not be charged any interest'), and did not imply that keeping the money in any random savings account would offset the interest charged on the loan balance.
If you had picked up this error in the first month after settlement, you could have easily remedied the situation. By not checking your statements / ringing Customer Service / calling in to the Branch for three months I would have to say that you have contributed significantly to the situation.
This is called 'taking responsibility'.
Taking responsibility is what grown-ups do. That is how grown-ups make their first million.
Grown-ups read the information provided by the Branch / Broker and probably also rummage about on the lender's website, too. Grown-ups ask questions and make sure that they are very clear on what their loan product can and cannot do. The Simplicity Plus is a bog standard discount rate loan. As your borrowings are below the threshold for discounting for aggregated borrowings, if you had chosen the fully featured Standard Variable Rate loan you would have been paying the full rate but could have set up the ANZ One Offset Account.
OK, sorry if this has sounded like the Wicked Witch of the West dispensing knuckle rapping.
I understand that you are somewhat miffed and wanting to blame someone and that someone else should pay.
By all means, lodge a formal Complaint. Be very aware of what was said between you and the 'girl' and be very truthful as to what printed information was provided to you at the time of applying for the loan and during the course of the application.
Lodging an official Complaint is your right, but it is not to be taken as some sort of cover up if you did not ask questions and did not check that the loan had settled according to your instructions, and did not check for three months that the post-settlement situation was not as you thought it would be.
The importance and value to you of what has happened is not whether or not the ANZ should repay the interest to you. The importance and value to you is whether you now make sure that in all things, you take the appropriate time and care to look after your own interests.
If you do that, then you will certainly be on your way to your first million.
cheers
Kristine
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