St George backtracking.....

[JBY]

As some of you may know, STG have two types of offset a/cs. A/c type #1 if for a PPOR and works whereby the money in the offset reduces the principle and not the loan repayments. Offset a/c type #2 works whereby the a/c balance reduces the actual monthly repeyments.

I recently purchased a property as a PPOR with St George. Its also an interest only loan with 20% deposit.

I was getting conflicting infor from the customer service centre and my acutual bank manager before settlement - The CSC said that a/c type #2 is only available on investment loans. Bank Manager insisted that it would be available on the PPOR and he would set it up for me after settlement. I had this conversation with him numerous times to confirm and even put my request in an email (which I still have a copy of).

Now that settlement has gone through I find out that it is only type #1. Bank manager is bactracking and claims he didnt know. He has agreed to have another word with head office on Monday. There was definately no ambiguity in my communications with the bank manager about my request, nor his that it would be provided.

I know from what other people on this forum have said is that the above scenario is actually St George policy. The point is though : I was obviously lied to in order to close the deal.

1. What type of recourse do I have to make STG stand by their promise of the offset product that I specifically asked for? What is the likelihood/possibility that I will get what i want?

2. If they refuse can I force them to allow me to refinance with someone else (without financial repercussions)?

I would be interested in hearing stories of other people who have had similar problems with lenders and how you resolved it.


What would you do?

 

[Y33]

ST.G are experts in renegging on verbal stuff which is why it is so important to get everything in writing. Made this mistake myself and still trying to sort it out since March. Did the manager confirm in writing to your written requests or just verbal?

 

[JBY]

It was just verbal, unfortunately.

Perhaps there is some way around it.....

I wonder what 'evidence' they would need that it had become an investment property. I mean, if I decided to move back in with my parents and rent it out then they presumably could convert it to the offset account I want. For example, perhaps they would accept just a lease document (- I think these used to be available from the post office - I wonder if they are still available?! I dont know much about this)

 

[Bradsdad]

I would still push the point as the managaer seems to still be admiting he was unaware of policy. If there is no suitable result, politely suggest that you have been instructed to contact the Banking industry ombudsman. If still no result on your favour contact the ombudsman. It's then a case of he said she said.
If the manager has uplined the issue ask him who it was (persons name) who he sent request to. This way at least you have some sort of proof that the manager had uplined the enquiry due to an error.


Regards
Steve

 

[Rolf Latham]

its a product problem .................and has been for a decade !

Interesting that not even branchies know this one sometimes. Not surprised though, its a well hidden glitch in the system, pretty much the same as the horrible MISA acct at CBA which works fine as an offset per se, but doesnt act as a transaction acct.

You acted in reliance of information provided by the provider of the service / product. Id guess you are in a very strong position to assert your loss here

Pls let is know how you get on

ta
rolf

 

[kotim]

The manager is anAGENT for the company THEREFOR if he said you can have it then he is in breach of contract, as he is the agent, the company therefor is in breach of agreement.

You took the contract out on that condition therefor threaten enforcement, nicely at first and if they refuse to see your view then attack them visciously{legal} and don't stop untill you make them pay badly