Mortgage Payments Being Placed In Separate Account By Bank

[Alwyn]

My wife and I have been paying a token payment off our mortgage each month. We are both unable to meet full repayment. While paying last months payment by cash we noted the teller rewriting our lodgement form and placing it in another account. When we asked why; we were told simply; that it is now policy for non performing mortgages.

Have you heard of such practice before?

 

[Brendan Burgess]

Hi B2B

That sounds very odd indeed. Which bank is it?

Do you have online access to your mortgage account? Do you get regular statements? Check the statements to make sure that the payment is being set against your mortgage.

Brendan

 

[Luternau]

Is there not some data breach going on if thats the case? A bank teller has no need to know whether the loan is performing or not. (assuming it was the teller that you asked)

 

[wbbs]

Whether or not the loan was in arrears or not would be obvious to a bank teller once they brought up the account on screen and the accounts could easily have a flag on them to advise tellers of anything different, hardly a data breach when it's one of the banks own staff that can see it.

Don't understand how it is going into a different account though, surely it must go into the mortgage account itself?