Bank did not link Offset account

Discussion in 'Loans & Mortgage Brokers' started by Fabs90, 22nd Sep, 2017.

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  1. Fabs90

    Fabs90 Well-Known Member

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    Hi all,

    I just realised that my bank did not link the offset account.

    In February 2015 I refinanced my loan to a new bank. As the bank could not offer 2 offset accounts against 1 loan, I ended up with 2 loans (split) and the new 2 offsets against these 2 loans. All was done but one of these offsets never was linked to the loan.

    The whole process with them was a nightmare. But in addition to this I now realised that it was wrongly done.

    Because of this I lost $1,000s in interest.
    I read online that this happened to many people with many different banks.

    I started the complaint with the bank (CUA) but I would like to know if any other person on this forum already experienced this and if yes, which was the outcome. I believe they are going to deny everything.

    Thanks
     
  2. HUGH72

    HUGH72 Well-Known Member

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    Your signed loan documents would indicate an offset, or most likely there would be written correspondence.

    I had a similar problem with Westpac, they confirmed I had requested the offset to be linked but it wasn't done correctly. I received about $8000 back in over paid interest from memory.
     
  3. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    I've seen this happen too many times over the years. Usually the banks refund the interest. On settlement my assistant now has a check list. She calls the bank checking this (and many others questions).
     
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  4. Colin Rice

    Colin Rice Mortgage Broker Business Member

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    We also make a habit of checking that as well and also advise clients to make their own inquiries to be certain.
     
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  5. Redom

    Redom Mortgage Broker Business Plus Member

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    This is fairly common & one of the first things worth checking right after settlement. In my experience, banks re-credited interest when this happens. Haven't seen it with CUA though.
     
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  6. wylie

    wylie Moderator Staff Member

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    We also are with Westpac and once they looked back to the documentation and realised they had made the mistake, they refunded us (about $6k from memory).

    They did it again just recently when they insisted we open a new account in exactly the same name as the loan it was to offset. Then they attached an account we already have (two names) to the loan (one name). It cost me a month's interest and they refunded that.

    You need to keep an eye on this stuff. Don't assume the bank will get things right.
     
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  7. Tranquilo

    Tranquilo Well-Known Member

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    With a new loan I normally ring and make sure payments are coming from the right account, and the offset is correct.
     
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  8. mikey7

    mikey7 Well-Known Member

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    Jebus. The people arranging these things in Westpac aren't doing a very good job. They recently set up a direct debit from my CBA account to pay SOMEONE ELSES loan (instead of mine). This resulted in a payment that was 4.5x larger coming out of my account. Wasn't happy.
     
  9. wylie

    wylie Moderator Staff Member

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    Oh... the stories I could tell... :rolleyes::mad::eek:
     
  10. Dean Collins

    Dean Collins Well-Known Member

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    How did you not notice for 2 years is my question.....
     
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  11. Corey Batt

    Corey Batt Well-Known Member

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    Doesn't surprise me - people have funds sitting all over and a non linked offset may not make a huge difference in the monthly payment to trigger a query.

    As to resolution most lenders are generally pretty easy with this - they should be able to establish exactly how long it hasn't been linked and equivalent amount of interest should have been saved and reimburse you accordingly.
     
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  12. Fabs90

    Fabs90 Well-Known Member

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    When I contacted first CUA they told me I opened the offset account 2 months after settlement and because of this I won't be refunded anything.
    This is not true as everything was done by the broker at the same time. Settlement was on Friday and CUA opened offset the following Tuesday.
    I called my broker and he took care of this. After 45 days he told me CUA will refund 50%. I asked when but still no answer.
    I called CUA and I was told no broker called there. And I was not "supposed" to contact any broker. And if I wanted to go this I have to ask them. After this dodgy thing, I called my broker again. He told me he did contact CUA and will be refunded 50% I asked when and I have no answer.
    This is a loan with 2splits and 2 offsets. All instructed by broker at the time of refinance. Both loan contracts are clear that have offset facilities. One of them specifies the offset acc number, the other no, because sad not created yet at the time of the Loan offer, but yes at settlement. But even though, the 2ND offset acc # was not there, it says that if there is not any # it will be linked to the 1st offset account. CUA did NOT link it to any of the 2.
    I am trapped between a broker that is not working properly and CUA that doesn't want to give me back my money despite what I'd says on the loan contract.
    I did the calculation and it is a total of $10,500.
    Has any body taken a similar situation to court or ombudsman? This is just abuse and illegal.
    I missed it during this time as I went through an sever personal situation, but this doesn't not mean I have to be robbed???
    Any advice? Now I started to collect all docs for a formal complaint with ombudsman. Is this the rights approach?
    Thanks in advance
     
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  13. Hosko

    Hosko Well-Known Member

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    Yep, get all the information and have at it. But first lawyer up, don't get a cheap one go expensive as they will be better. You will win for sure!
    Maybe take a breath, it took you a couple of years to notice. It doesn't have to be fixed in a fortnight.........
     
  14. qak

    qak Well-Known Member

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    Go to complaints section of CUA first - and they should fix you up for the full amount if it is their mistake.
     
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  15. kierank

    kierank Well-Known Member

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    Exactly.

    We deal with 5 different banks and have multiple accounts with each (loans, offsets, credit cards, ...).

    We checked EACH of our accounts with EACH of our bank EACH day. This is so easy with mobile phone apps.

    Our money is important to us.
     
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  16. Heinz57

    Heinz57 Well-Known Member

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    Seems to happen to me a lot. Currently waiting on 2 month interest repayment with NAB.
     
  17. kierank

    kierank Well-Known Member

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    One of the reasons we do this :-

    Years and years ago, we had our SMSF cash account and our business cheque account (I said it was a long time ago) with the same bank and branch (same building as our office).

    As our cheque book was getting low on cheques, we ordered a new book. When we got it, we made sure it was in the business name.

    Then we started using it, paying rent, wages, suppliers, etc until one day a cheque bounced.

    WTF!!! There should have been plenty of funds in our business cheque account. Upon investigation, we had lots and lots of money in the cheque account but the SMSF account was drained dry. Using Super money to pay private expenses is a BIG no-no!!!

    It took a little while to sort out that mess!!!

    Ever since, we check everything :D.
     
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  18. Marg4000

    Marg4000 Well-Known Member

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    Firstly, make sure the accounts are correctly linked to make sure there are no further losses.

    Then,

    Contact the Financial Services Ombudsman.

    There is a set procedure. They will give you the name and phone number of a Complaints Resolution person at the Bank. You contact this person and give them all the details if your complaint. If you cannot get a satisfactory outcome then the Ombudsman will investigate further. This is at no cost to you.

    So long as you have paperwork to support your position, this should be easily rectified.
    Marg
     
  19. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Forget the broker. Just search for the complaints person as CUA and make a written complaint. If they do not fix the issue mention that you will need to get the ombudsmand involved - this costs them a lot of money and hassle so they may give in, if not the raise the matter with the ombudsmand CIO or FOSL
     
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  20. wylie

    wylie Moderator Staff Member

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    I wouldn't be happy with any offer of 50%. Our bank tried to weasel out of fixing their error (about $6k) until they admitted it was there in black and white (and we had a copy).

    I would go directly to the bank (which it seems you already have done). If you don't get satisfaction from that encounter, I'd go directly to the appropriate ombudsman.

    I'm fighting something myself and not to the stage of the ombudsman as yet, but for me, I'm dealing with a credit company (not a bank), so I'm going to be going to the Credit & Investments Ombudsman (as Terry above as mentioned).

    And I'd say to anyone who says "how did you miss it", that for me, the link between offset account and loan account means the statement issues slightly differently and the link is printed on the statement.

    This is different to when I had offset accounts years ago, so I never knew that it should be shown on a statement. So with our account balance fluctuating by thousands over a week, I assumed the bank was offsetting as per our loan agreement. Never assume...

    Our current offset account offsets one loan, is not used as a transaction account, so I can easily check it is correct.

    Each time our bank stuffs something up, it is learning experience. I've had many learning experiences :mad:.
     
    Last edited: 3rd Nov, 2017
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