Can you be clearer.from the financial institute
If you want to take it to Ombudsman you have to make it clear in writing with the fund that you are making a complaint. If you don't like their response you can take it to the Ombudsman then. If the fund doesn't respond in a reasonable period (a month) you can take it to the Ombudsman either. But the Ombudsman will only deal with you when you have exhausted the process with the fund.I sent a general inquiry to the Financial Ombudsman
I'm going to assume it was an ex INBS mortgage?Vulture fund, I've been with them for 6/7 years. Never sold on.
My advice is to skip the offer of mediation if there is one, it is a waste of time for something like this, and go straight to adjudication.Hi, yes the ombudsman has jurisdiction. I'm at that stage with the VF already. Final letter issued and I can go to the ombudsman. Wondering what others think about the situation - not having lump sum applied to principal.
I paid a lump directly into my mortgage account and assumed that it would automatically reduce the interest accruing. I since found out it wasn't.
I'm going to assume it was an ex INBS mortgage?
.... I do know they had a weird way of processing them, but I've no idea what your contract says.
I have heard about people paying lump sums off their mortgage and not having anything done with the lump sum until year end, or people being told, oh we just thought you wanted to used the lump sum as a credit to pay off the monthly payments. So you need to be clear to the mortgage company what you would like them to do with the lump sum. ie reduce the capital and shorten the length of the loan or reduce the capital but keep the mortgage length the same so recalculate the monthly payment.
How long did it go on before you noticed, a month, a year, a few years? The statements should be reviewed very carefully for stuff like this.
Your mortgage contract should state if you were able to make lump sum payments off the principal, some don't allow it.
The mortgage company generally have specific forms to fill in to instruct them what to do with lump sums if allowed
It sounds like you gave them no instructions so they may have decided just to wait for instructions.
Sorry, I messed up the quotes, I meant to add to the above response. ^^^Are you sure about this? You might be right, but I find it very hard to believe.
People get confused all the time. Their payment remains the same, so they think that the interest has not been reduced. But the interest has been reduced and the monthly repayment has less interest and more capital.
Brendan
That part sounds correct (I'm assuming you mean daily interest amount rather than rate). It's how every bank does it, but it's different to what INBS did.The way they do the interest charge is not what I expected. I make a payment mid month and the principal and interest is reduced for the rest of the month. At the start of the month they add the Interest charged in the prior month back onto the principal and the daily interest rate increases marginally until the next payment. Rinse and repeat.
Thanks. Yes, the daily rate. I'm used to dealing with loans and interest for work, just not on a daily basis., but over the life of the loan.That part sounds correct (I'm assuming you mean daily interest amount rather than rate). It's how every bank does it, but it's different to what INBS did.
I'd happily have a look at a statement for you if you wanted to share it.
The only question remains is if they are allowed to ignore an amount that's paid early if specifically told for it not to reduce the principal.
Wondering how you got on ?Thanks. Yes, the daily rate. I'm used to dealing with loans and interest for work, just not on a daily basis., but over the life of the loan.
The only question remains is if they are allowed to ignore an amount that's paid early if specifically told for it not to reduce the principal. I may have the contract somewhere, but would take some time in the attic. But, from what you say it sounds plausible that they could be allowed to do this? What would I be looking for in the contract if this was possible, what kind of wording? Thanks for your time on this.
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?