Didn't want to disappoint Pinkboy, but my bank stuffed up again...

Discussion in 'Accounting & Tax' started by wylie, 30th Jun, 2015.

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  1. wylie

    wylie Moderator Staff Member

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    Seeing that Pinkboy had a cheap shot (perhaps he was jesting ;)) at the fact that I have issues every year with my loan fixing and prepayments and get onto the forum to have a whinge, I didn't want to disappoint him, so thought I'd just mention that this year, I arranged to fix six loans, and guess what... my bank put through only three of the fully documented fix and prepay transactions.

    At 4.45pm I thought I'd best call my broker and see how late I can leave it. He made a call to get the figures, told the monkeys working there NOT to transfer, as I was taking over and manually transferring the three "lost" interest prepayments. Let's wait and see if they've also ignored that call and I've paid twice. That will be fun to sort out.

    Seriously, you can joke about me complaining EACH AND EVERY YEAR, but this is just inexplicable. How can they get it wrong every year? Who is working in these places?

    So, all six loans are prepaid now, but it pales into insignificance compared to the $15K extra tax I will pay due to a different but equally incompetent bank not managing to get their act together, despite plenty of lead time.

    I was hoping to prepay the new loan, but no, they've f#ck@$ up and it will mean I pay $15K combined in land tax and capital gains tax. That is $15K I'm just flushing for no good reason :mad:.

    I was very stressed last night and up until nearly 4pm today my broker was pushing, calling, coaxing, shouting, everything but physically arm wrestling, but the lunatics running the (bank) asylum couldn't give a toss about my measly $15K.

    This time last night (and most of the past week) I've been stressed to the eyeballs, but last night we had a family dinner, I had a couple of glasses of wine, and today I was just resigned to paying the tax I didn't need to pay.

    Like all the crap that sometimes gets in the way of happiness, this is one thing that is bloody annoying, but nobody died, and that has become my litmus test of how stressed I should be :)
     
    Last edited: 30th Jun, 2015
    wylie, 30th Jun, 2015
    #1
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  2. wylie

    wylie Moderator Staff Member

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    OMG!!! After all the pre-planning (mentioned in my post above), and with the strike rate being only 50% of the planned, documented and arranged prepayments going through as planned, TODAY I get a letter with documents (dated 1 July) to change one of the loans (that had been done weeks ago), together with a return envelope. HELLO!!! What is wrong with these people?
     
    wylie, 3rd Jul, 2015
    #2
  3. freyja

    freyja Well-Known Member

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    :(Goodness - is be annoyed about flushing 15k down the drain due to a bank stuff up... Much rather take the family to Bali or NZ with rhat! I feel your pain
     
    freyja, 4th Jul, 2015
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  4. freyja

    freyja Well-Known Member

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    Goodness - I'd be annoyed about flushing 15k down the drain due to a bank stuff up... Much rather take the family to Bali or NZ with that! I feel your pain
     
    freyja, 4th Jul, 2015
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  5. 158

    158 Well-Known Member

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    I don't jest, so it was probably a cheap shot! :p

    My (financial) year is complete! :D

    pinkboy
     
    158, 21st Jul, 2015
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  6. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    You should contact the Financial Ombudsman Service after raising a case for damages with the bank. The bank must have received and addressed your claim first or FOS will refuse to deal with it. Your first request should be that they backdate the entries to fix & prepay to 30 June aqs their negligence / omission results in your financial loss. Banks can backdate anything if they have a reason.

    https://www.fos.org.au/

    I am a little puzzled how a timing issue with a prepayment of interest affects land tax.
     
    Paul@PAS, 23rd Jul, 2015
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  7. Greyghost

    Greyghost Well-Known Member

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    Sorry to hear..
    On the 15K, isn't it just a timing difference?
    ie: Don't get deduction for 2015, pay additional tax, get deduction in 2016 and prepay also in 2016? Or with the double dip for 2016 will there be a drop in your marginal tax rate, thus not being an efficient deduction in 2016?
     
    Greyghost, 23rd Jul, 2015
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  8. albanga

    albanga Well-Known Member

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    There are simply some companies who are always incompetent.
    I work in IT and sometimes need to arrange telephone cut-overs with Telstra whereby they move a number block to a new service.

    The past 6 I have done with a ridiculous amount of diligent planning has been stuffed up every single time by Telstra and resulted in hours and in some cases DAYS of down time.
    It is sad but I now build this into my timeframes! Fancy that an allowance for incompetence!
    Problem is you can get as many people and even high up people as you want but ultimately the work just comes down to one idiot who fails to read anything and just does what they want.

    Now that doesn't cost me personally money, the company yes but I do feel your pain.
     
    albanga, 23rd Jul, 2015
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  9. wylie

    wylie Moderator Staff Member

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    The land tax comes into it because I'm buying a property from a trust, and this was planned to happen in June, funded and interest prepaid. That all crashed and didn't happen in time. We made a capital gain and my planned interest in advance on the new loan would have saved me $10K by bringing the interest into June to help offset the gain.

    The trust would have saved $5K land tax had this transfer gone through before 30 June. That is due to a hold up with the new bank, not the bank that usually stuffs it up. But, of course, they did stuff it up again anyway. So there were a few things that came into play to cause the loss.

    But heck... nobody died, so we just keep on keeping on :).
     
    wylie, 23rd Jul, 2015
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  10. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Transfer and fixing are different issues. Forward plannIng the obvious risk but time expired. Less likely the bank fault for that.
     
    Paul@PAS, 23rd Jul, 2015
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  11. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Perspective .................its one of the most important assets in long time surviveability, both in financial and personal life length terms.

    ta
    rolf
     
    Rolf Latham, 23rd Jul, 2015
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  12. wylie

    wylie Moderator Staff Member

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    Absolutely a bank issue. Broker had all our info ready to go by 22 April. We gave him the go ahead on 5 May and up until 30 June we were pushing to settle.

    It was a low doc style loan, and everything just happened too slowly. Bank had everything they needed, but asked for it all again. They "promised" this would be funded mid June and then it went downhill. Every few days they asked for what they already had, but this time wanted it certified by a JP. Turns out we could have got it funded in time except they called for more payslips from my PPT job. In case I had doctored them, they needed to call my employer and each time one of these "checks" happened I think it went to someone's in-box. This happened multiple times. My accountant sent an official form about my income. They asked for that again and called him to check (third check).

    Just over the top in my eyes.

    Documents should arrive today and should be funded next week, just over 14 weeks since we lodge the application. I think that is a bank delay :rolleyes:
     
    wylie, 24th Jul, 2015
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  13. Terry_w

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

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    Surely this was treated as a normal purchase. You would have had contracts of sale and banks should have treated it as such. If it was a stranger you could have lost your deposit and been sued.
     
    Terry_w, 24th Jul, 2015
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  14. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Not great. Who is lender ?
     
    Paul@PAS, 24th Jul, 2015
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  15. 158

    158 Well-Known Member

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    Wesuck IIRC.


    pinkboy
     
    158, 24th Jul, 2015
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  16. 158

    158 Well-Known Member

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    158, 24th Jul, 2015
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  17. wylie

    wylie Moderator Staff Member

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    New loan is with a different bank.
     
    wylie, 24th Jul, 2015
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  18. wylie

    wylie Moderator Staff Member

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    Yes it was treated as a normal purchase. No contract of sale required though. If I was purchasing from a stranger, I would never go in cash unconditional unless I had a pre-approved loan lined up or knew I could settle using other funds. We could have settled before June 30th using cash, but that is not what we wanted to do.
     
    wylie, 24th Jul, 2015
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  19. Terry_w

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

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    Oh dear. No contract of sale can have issues. I even do a contract of sale between husband and wife as it demonstrates the commercial nature of the transaction, aids in asset protection and helps determine the deductibility of interest. Hope market value was put on the transfer?
     
    Terry_w, 24th Jul, 2015
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  20. wylie

    wylie Moderator Staff Member

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    Yes it was. We can still do a contract if you think it is necessary I guess. House valued by professional valuer and bank also. Full duty to be paid.
     
    wylie, 24th Jul, 2015
    #20