AIB putting pressure on me.

losttheplot said:
Didn't think they could do that, it has nothing to do with your mother. It sounds very unprofessional. Sounds like someone screwed up by giving you the initial loan and is panicking and maybe trying to hide it from their boss. I wonder was their a "rogue" loan approver firing out loans to blow up their commision. Now it's all gone wrong and they're desparetely trying to clear it up. I also find it strange that you received text messages from them. All my contacts with banks has always been mail, voice calls or voice messages - never a text. Is it always the same people in the bank you're dealing with?
Click to expand...

I cannot remember the person that gave me the loan. The bank manager was busy at the time and sent me on to another Aib bank. A friend of hers worked there. The fellow that is looking after the loan now only contacted me in Sep 2010
 
lee75 said:
I did my calculations last week on the mortgage repayments when the 30k would be paid off I could afford it, but then as I say the bank turned around and said that the monthly payments will not reduce so I am back in the same position I was in first day with the repayments.
Click to expand...

What does your contract/term & conditions say about repaying early part of the loan? Does it permit you to reduce the monthly repayments or does it have to go into reducing the term of the loan (which is what the bank is doing)?

It is understandable the bank wants you to repay as much as possible as fast as possible and doesn't want to reduce your term, as even after taking 30K off the loan, the security of the site is still inadequate. The real question is - is the bank allowed to keep your repayments at the same high level or not.

If you are having repayment difficulties, speak to MABS, then go from there.
 
My solicitor is going through the contract. Will let you know how I get on. Thanks to all for thaking then time to respond.
 
Lee, if you are a standard variable rate, they can't refuse your request to use the 30k to pay off part of the mortgage. I don't understand their point about the extra security or that the monthly repayments won't drop. I presume you have gone to the manager about this. I would contact them again, ask them to refuse your request in writing or explain why the monthly repayments won't drop and inform them that you will be contacting the Financial Ombudsman.
 
Spoke to the bank today. They are putting my 30K against the 100k, but have told me the repayment will not change. If rates stay the the same I will have the loan paid back sooner but if rates go sky high It will take the full term to pay off and if there is any short fall at the end of the term this must be paid off in a lump sum. I was never told this from day one. I was thinking if I reduce the capital surely my repayments will go down, and to top it all off they told me my credit rating is damage for the next 7 years for missing a few payments in protest of getting my 30k back against the 100k.

My argument with them is all this started when they demanded the 30k back from me, and they admitted it. I sold the property in Hungary for 30k and my intention was to leave it in a high interest account @ 8% hungarian forint.

The bank are trying to screw me every way.
 
HI

Does anyone think I would have a case against AIb ?
Any help would be apareciated.
 
What exactly is your case though? You agreed to put the 30K against the loan, just because they won't reduce the payments doesn't mean you have a case against them. As long as both you and they are complying by the terms and conditions of the loan than you have no case. The fact that you missed some repayments means probably you have not complied with terms and conditions. You say they advised you to put the sale money into a certain account, you did do this but you didn't have to.

You have made a presumption that if you pay back part of the loan the repayments will go down but the bank does not agree.

You also say you were not told on day one what would happen in the case of different scenarios, did you ask, did you read the terms and conditions of the loan.

The only way you have a case is if it's the bank's fault you didn't continue to make repayments.

Surely the fact that the 30K reduced the loan also means you'll pay a lot less interest.
 
My family and I have been banking with AIB for years surely you think they would act in our best interest.

They gave me a 100k mortgage on a site worth say 100k in the good years. Property collapsed site only worth 10k now. Bank has a problem.

They put me under pressure to bring in the money. The person in charge said he was under pressure form head office to get money in against the loan even though up until then I never missed a repayment.. Constant phone calls and text as to when the money was coming in. Then when the money came in I was put under pressure again to sign a new laon approval and this had to be done immediately again as he said he was under pressure again from head office. I signed this because I did not want any trouble from the bank. So now the the bank problems are less the 30k is in the bank. I was paying interest on it to keep it there. When I asked to put the 30k against the 100k they asked for deeds of my mothers land to secure the loan. If she had this would have been another bonus for the bank. Now and only for my solicitor contacting the bank the 30k is off the 100k. But my monthly payments are still unaffordable. The should have expalined to me first day that the monthly payments were set. I was put under so much pressure to sign every time and get money in. I just did it as I never thought the bank would try and screw me.
 
lee75 said:
My family and I have been banking with AIB for years surely you think they would act in our best interest.

They gave me a 100k mortgage on a site worth say 100k in the good years. Property collapsed site only worth 10k now. Bank has a problem.

They put me under pressure to bring in the money. The person in charge said he was under pressure form head office to get money in against the loan even though up until then I never missed a repayment.. Constant phone calls and text as to when the money was coming in. Then when the money came in I was put under pressure again to sign a new laon approval and this had to be done immediately again as he said he was under pressure again from head office. I signed this because I did not want any trouble from the bank. So now the the bank problems are less the 30k is in the bank. I was paying interest on it to keep it there. When I asked to put the 30k against the 100k they asked for deeds of my mothers land to secure the loan. If she had this would have been another bonus for the bank. Now and only for my solicitor contacting the bank the 30k is off the 100k. But my monthly payments are still unaffordable. The should have expalined to me first day that the monthly payments were set. I was put under so much pressure to sign every time and get money in. I just did it as I never thought the bank would try and screw me.
Click to expand...

You are still in a strong situation. Make sure the bank understands you can't make the monthly repayments. Paying off the 30k against the loan and keeping the same repayment schedule reduces the loan term. Tell them you want to the keep the original loan term which is sounds like you already have. If they still don't do it, well simply go into arrears on the loan. (assuming you honestly can't afford the repayments) Their head office will agree to restructure quickly enough when they realise they are sitting on worthless security.

To be honest, it sounds like a branch trying to cover it's ass.
 
MrDerp said:
Something really doesn't add up about this whole situation. OP are you on a fixed interest rate at the moment? If so, the bank would have every right to insist on the same payment for the duration of that fixed rate contract. No not on a fixed rate, they just told me I was on a fixed monthly payment. I argued that I was on a variable but they said no the monthly payment was not changing.

If you're on the Standard Variable Rate, then that 30K should reduce the term length. If you want to decrease the payment to 70K over the same length of time, you would need to remortgage the new amount over the same term I think, which the bank is never going to do given the extremely low LTV. My solicitior phoned the bank and told them that the 30k must be put against the 100k. I don't know what pressure she put on them but it worked and now the 30k is being put against the 100k. I could be wrong, but I believe overpaying a mortgage, where allowed, will reduce the term rather than the payments. However, this means you pay the same principle monthly and should in theory reduce your interest payments unless you're on a fixed rate - in which case the bank has a contract to expect a fixed amount of interest for the duration of that contract

As for the 30K deposit being used as security, that's very odd, but it's probably the bank trying to make its balance sheet look healthier. 10K site on a 70K loan is LTV of 14%, while 10K site + 30K deposit is 40K security on a 100K loan giving an LTV of 40% which helps the banks balance sheet. It sounds like they tricked you into voluntary charge on your asset, the 30K.
Click to expand...
Yes they tricked me to put the 30k in a deposit account with no access to it and charge me 4.8% to borrow this 30k and give me 2% on deposit
 
You must log in or register to reply here.
Back
Top