4 cents arrears on my mortgage after moving from KBC to Bank of Ireland

L

Lillywhite22

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I received a letter today from the Bank of Ireland Mortage Arrears Support Unit to state that my mortage, which transferred from KBC on 1st February 2023, has been in arrears for 31 days or more to the tune of.......€0.04.

The letter included a 'Guide on Dealing with Mortgage Repayment Difficulties' and referred to serious consequences for not co-operating with the Code of Conduct on Mortgage Arrears, possible legal action etc. etc.

When I called the Arrears Support Unit, they informed me that the arrears was on the account when it transferred from KBC and I would need to take it up with them. I replied that it hardly made sense to call KBC when my mortgage is now with BofI. They said there was nothing else they could tell me but agreed to consolidate the 'arrears' into the account.

To say I am shocked and disgusted to receive such a letter so early in my mortgage relationship with BofI is an understatement. However, my concern is that I now have an arrears recorded against me - 17 years into an unblemished mortgage account. Is there anything else I should do here to protect myself?
 
The first priority is to make sure you have no arrears. So clear them. Don't even rely on them "consolidating" them in case it shows up on your account as a mortgage which has been restructured.

Then check your Credit Record to make sure that it's clean.

You should write a letter of complaint to KBC and to BoI asking for an explanation how this arose.

It sounds as if it is something to do with the transfer of mortgages - maybe some incompatibility of the two systems.

You should copy the letter to the Central Bank as I am guessing that it affects others as well.

Brendan
 
I spent 4 years getting letters from Ulster Bank telling me I was in arrears because I took a payment holiday which I was contractually able to do...Their system couldn't cope. No impact to credit record but the letters did cause problems when my wife opened one and thought we were in financial trouble!! .I contacted the Central Bank but went nowhere.....

That's a joke that BOI are washing their hands of it. It is 4c! As Brendan says, write a letter of complaint. I hate these 'The Computer Says No' answers from companies....
 
My.err...2 cents on the matter (or rather the CCRs comment)

Amending Information

Information for consumers about the Central Credit Register
www.centralcreditregister.ie www.centralcreditregister.ie

Under FAQs, amending info there is a specific reference to KBC and Ulsters departure.

"Given the scale of the account migration exercise from Ulster Bank and KBC, we have issued instructions to lenders to amend the Central Credit Register in the event that more than 1 monthly payment is missed because of operational issues. This means that, if you miss loan repayments through no fault of your own as a result of switching bank accounts, and once the payments are again up to date, this will not show up on your credit report. The amendment will be made to the Central Credit Register by your lender after you have engaged with them."

"Where possible, we would encourage you to monitor your loan repayments during the account switching process. If you notice that payments have been missed on your account, you should contact your bank immediately. Once you have told your lender that the issue was due to account switching, and your payments are up to date, they are expected to amend the CCR so that your payment history is unaffected."
 
This sounds like it's probably a rounding error in software somewhere resulting in very slightly different balances being calculated.
 
Brendan Burgess said:
The first priority is to make sure you have no arrears. So clear them. Don't even rely on them "consolidating" them in case it shows up on your account as a mortgage which has been restructured.

Then check your Credit Record to make sure that it's clean.

You should write a letter of complaint to KBC and to BoI asking for an explanation how this arose.

It sounds as if it is something to do with the transfer of mortgages - maybe some incompatibility of the two systems.

You should copy the letter to the Central Bank as I am guessing that it affects others as well.

Brendan
Click to expand...

Thanks all for your replies. Very good point about the restructuring Brendan- I hadn't thought of that!
 
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