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First Active reneging on Current Account Mortgages

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  • 20-05-2006 3:59pm
    #1
    A Abbott
    Closed Accounts Posts: 2 ✭


    I have a First Active Current Account Mortgage (Standard Option) for the last three years. Up to now this has worked out quite well, as I have progressively increased the balance in my facility account and therefore the monthly repayments are quite low. Recently out of the blue I received a letter from First Active to say that the 'Standard Option' will no longer be available and that I should complete a consent form to switch to the 'planned Option'. I was horrified as my repayments would go up by 1400 euro a month. I got a follow up call from First Active's Branch Development Manager shortly after, applying quite intense pressure on me to complete the consent form urgently. Amazingly on visiting a number of First Active branches I picked up Current Account mortgage brochures still offering customers the 'Standard Option' on current account mortgages. This must be one of the most extreme examples of sharp practice I have ever encountered!!!! Is there anyone else out there who received such a letter or am I the only First Active customer, First Active wants to get rid of?


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    #2
    dudara
    Registered Users Posts: 33,518 ✭✭✭✭dudara


    How about a call to the Financial Regulator. They've been advertising on the radio lately that they will offer advice on all matters financial


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    #3
    FillSpectre
    Closed Accounts Posts: 834 ✭✭✭FillSpectre


    Could you explain what is the "planned option". I am getting the impression they are effectively not giving you a one account mortgage now? I was thinking about going this route next month so I am really interested in this.


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    #4
    jimmycrackcorm
    Registered Users Posts: 14,339 ✭✭✭✭jimmycrackcorm


    I'd flatly refuse to sign the consent form - if they are putting pressure on you to change then the tactic is to try get as many people off the standard option as possible and those that stick with it will have to be unprofitably left with it.


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    #5
    deadl0ck
    Registered Users Posts: 4,185 ✭✭✭deadl0ck


    I've got the same type of thing from First Active.
    They want people to switch from the "Standard Repayment" (reduce your monthly payment based on the money in your current account) to a "Planned Repayment" (reduce your term, as opposed to the monthly payment).

    Anyhoo - I rang them and said I wasn't going to be changing as I was more interested in maximising my disposable income for each month and was told "But you have to sign it" - At this point I pointed out that the form was a "Consent" form, meaning they had to have my consent to change the morgage. The mortgage advisor then said "I don't know about legal things" or something to that effect.
    Anyhow, I threw the letter in the bin.

    About a month later (a few weeks ago), I got another letter, containing another consent form.
    It said I had to sign it by the end of August, and.....if I didn't sign it they would assume I want to change my repayment type anyhow and they would change it !
    Fantastic eh ? Hobson's choice....

    I immediately rang the Financial Regulator and was told that they are aware of it and are following it up, in the meantime I was advised to complain, in writing, to First Active directly.

    So basically, they are forcing people to chage their mortgage whether they like it or not.

    I'm going to sell my house pretty soon (hopefully) as I'm going to build a hoiuse down the country, and I'll never touch FA again. Thoroughly useless !!


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