Discharge AMP Loan

Discussion in 'Loans & Mortgage Brokers' started by world2160, 3rd Oct, 2018.

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  1. world2160

    world2160 Active Member

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    Hi everyone, I am about to refinance 3 loans from AMP to Suncorp. They are investment loans with linked offset accounts.

    I just found out that AMP has a special discharge clause which basically says that the offset facility will be unlinked from the last repayment date to the day of discharge. So for example, if i have the dates as follow:
    - Last repayment date is 3/10/2018
    - Discharge date is 23/10/2018

    In this scenario, I will lose 20 days of interest even though the offset money is still in the "now unlinked" offset account. I have substantial amount of money in my offset account (multi-million) so 20 days of interest is not insignificant.

    My broker told me no other banks have this clause and suggest i should complain to AMP otherwise complain to fair trading. My broker reckons it is illegal to do this.

    Has anyone dealt with AMP discharges before? and has AMP waived this clause from complaints?
     
    Last edited: 3rd Oct, 2018
    world2160, 3rd Oct, 2018
    #1
  2. Ross Forrester

    Ross Forrester Well-Known Member

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    Yes. Complain. Good idea. What is their to lose?
     
    Ross Forrester, 3rd Oct, 2018
    #2
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  3. Terry_w

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

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    It is probably in your loan contracts that this is the case.
    But it could be an unfair contract term and won't hurt you to complain. I would try complaining to AMP first and then threaten a complaint to the FOS and then actually lodging a complaint.
    https://www.fos.org.au/

    It could work out to be about $1300 if you had $500,000 cash in there.
     
    Terry_w, 3rd Oct, 2018
    #3
    world2160 and Perthguy like this.
  4. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Could you rebook settlement to occur one day after the last repayment? Ie 4th of November?
     
    Jamie Moore, 4th Oct, 2018
    #4
  5. world2160

    world2160 Active Member

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    Yes i could, and that is what we are planning to do. However I am just feeling being ripped off by an unfair contract which should be rectified.
     
    world2160, 4th Oct, 2018
    #5
  6. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Best of luck.

    More than one lender has this challenge I think.

    No logical reason. For it to be 3 weeks out thpugh
     
    Rolf Latham, 4th Oct, 2018
    #6
  7. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    yeah I don't blame you for feeling that way - I deal with bank antics everyday of the week. Does my head in at times.

    Cheers

    Jamie
     
    Jamie Moore, 4th Oct, 2018
    #7
  8. Kangabanga

    Kangabanga Well-Known Member

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    We need another royal commission :)
     
    Kangabanga, 4th Oct, 2018
    #8