Liberty offset account

Hi all,
I have a loan with Liberty with 2 splits + 1 offset account against one loan of approx 100k I got when I refinanced with them.
I transfer the rent I get from the property into this offset and redraw from it the to pay the 2 loans and property expenses.
Since April I cannot have access anymore to my offset account to make a simple internal transfer to pay my loans or to transfer out to the linked account to pay the property expenses.
I complained about this. For 3 months, Liberty was blaming me about this situation.
In June, Liberty accepted there is a tech problem with the account. However till now it hasn't been solved. I requested to be told what it will be done from now on and when this is going to be addressed.
I had no answer. They told me they are trying to solve it.

Now I believe this is not a problem but it is a decision that Liberty made to prevent me having access to my funds. My concern is that I started with this in April, when covid became a problem. These funds in the offset account are not secured by the 250k government policy.
It is better for me to move all this money into the loan? I know that if I'm doing this they can decide to prevent me access it at anytime.
But, if I leave it in the offset, if they take it, I will loose the entire money.
I just don't believe that for 4 months Liberty couldnt solve a simple internal transfer between my offset into the loan. Nd I am forced to call or email them every single time I want to use my money. Even if this is $1.

I'm the only one experiencing this with Liberty's offset account? Is it safe to keep this money on the offset or should I move it to the loan?
Thanks

 

Is it, in fact, a real offset?

 

Liberty's offset is not a true offset account, hence why the funds in there are not guaranteed by the Government
Are Liberty doing anything to resolve your issue or do you need to lodge a formal complaint to get things moving?
Hopefully someone else with a Liberty account will come along and confirm if this is an issue with all Liberty accounts or just yours

 

Does this mean it is actually a redraw?

 

what does it matter if you owe them money? If you were wtth a bank with $400k loan and $100k in an offset you wouldn't be any better off as you still owe then a net $300k

 

Because the op thinks the lender can 'take' the 100k and still be left with the 400k debt.

 

I too have a loan with Liberty, I have always felt uneasy that the offset isn’t easily assessable. These are the “rules” before you can get your cash;

- A redraw form must be used for each redraw from an offset account.

- all loan holders must sign the form

- Funds can only be redrawn to an account in the loan holder’s name

 

Just requested all my $$$ to be removed from the liberty offset. Didn’t appreciate the new form which now makes you fill our employee info of both account holders, your salary, employment contact information and rental income just to get access to MY cash. @Fabs90 what did you decide?

 

Its not your cash as it is not a true offset, it is extra repayments really.

 

Hopefully you get your cash shortly, sounds like they want to assess your ability to repay the loan, if you didn't have serviceability then they very well might reduce your loan amount...

@Fabs90 I would suggest you try to get the funds released asap as @Scaphella has done, and have it in an Approved ADI.

I'd be wary as well considering the Bail-in laws that have been passed.

 

Bumping, as we have some liberty accounts. I will be ringing rhem during the week asking specific questions in regards to why our interest charges are usually higher each month. One of our accounts (with offset) interest charges are below.

Oct 2020: $502.48
Nov 2020: $506.53
Dec 2020: $478.22
Jan 2021: $482.45 (Higher then Dec)

Reason for my call, is because of our offset accounts linked to two of our loans.

I transfer approx $1,600 extra each fortnight into offset, with current balance over $12k.

So why would the interest charge still be in the high $400's, with a daily offset of $12k - $14k?

As per reading this actual topic / chat, screen shot I took tonight lists ways you can transfer out of your offset.

I'm unsure of the paper form that is required, unless you are above the $20k max limit to withdraw.

 

@TopCat
Without knowing all the details - do the calculations:
1 The no of days in the month is the reason for your different interest charges

2 To calculate what you believe is correct interest v the Liberty calcs, (probably easiest in a basic excel spreadsheet)
a) work our loan balance each day for the month (easy if paying I/O, reduce by offset balance),
b) multiply by interest rate p.a
c) multiply by number of days in month and divide by 365 days in the year

If it matches the Liberty amount it is being calculated correctly.

If you’re not good on exel, use a online calculator from another bank to get some more basic comfort.

Good luck