Australian Mortgage and Loan Information

Why you need to know How To Fight Bank Errors.

Here is a typical scenario for a loyal Bank Mortgage Holder.

After depositing sufficient funds to a checking account to cover the monthly automatic mortgage payment with plenty of time to spare. You get a call from the bank asking for a payment to your mortgage. You reply that it is an auto debit from your checking account and that there was plenty in the account to cover their payment. They then accuse you of not paying on time and list a series of fees you are going to be slugged if you don’t pay up today. You are offended, but swallow hard and say you will fix it, but it is the banks problem not yours.

You contact the branch, they say your deposit was posted incorrectly and that they are sorry and will correct the problem immediatly with the mortgage area and that all fees and interest overcharge will be refunded. While not 100% happy, you let it go at this and trust the bank to do the right thing.

Big mistake! three days later you get a call from the bank’s mortgage collection department demanding payment immediately. You explain that you contacted the branch and that they said they would fix it. The mortgage department continue to demand payment, they say they have heard it all before.

You contact your branch manager and explain nicely that you are being harassed! “Didn’t they take care of it”. She explains! No you say, they have been leaving harassing calls on my answering machine. The branch manager then says she will call the dispute department and get it taken care of and that she would ring you back. She rings you back and you even get a letter of apology from the branch. So you rightly think you have put the matter to bed.

Wrong! Sure they may have refunded some of the fees, but what about the penalty interest rate? Sometimes they charge a penalty rate on your entire loan for they period, not just the missed payment amount. This can be $100′s of dollars, depending on the size of your loan.

So how do you get this overcharge corrected. Work out by hand and calculator how much you have been overcharged? This will take a long time and will probably not be accepted by the bank.

My advice is to use a statement checking program that has some credibility with the Federal Trade Commission or the Banking Ombudsman. The evidence produced by such a program will be undeniable and force the bank to cooperate with you.

Most online statement checking software providers will also help you prepare your case.