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Mortgage company contacting bank for transaction details.

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  • 06-12-2008 1:43pm
    #1
    SMERSH
    Closed Accounts Posts: 198 ✭✭


    Last month I received a cheque from my household insurance in respect of a small claim only a few k. As per the mortgage agreement the cheque was made out to the mortgage company as well as myself. After talking to the mortgage company I sent them the cheque to be lodged to my mortgage account on the strict understanding that a cheque would be issued to me for the amount of the insurance claim. I sent the cheque to them over 3 weeks ago and this week I rang the mortgage company to chase up the cheque, which they had agreed to issue this week.

    Today, I received a phone call from my bank saying that a person purporting to be from the mortgage company (the name matched a person I was dealing with) called them and enquired about transactions on my current account. They wanted to know if my mortgage payment was paid on the 3rd. Correctly the bank refused to give them this information and they called me immediately.

    Questions: Can the mortgage company do this? Surely they know they cannot obtain this information.
    Do I have any grounds for a complaint to the Financial regulator?


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    #2
    unclebill98
    Registered Users Posts: 3,816 ✭✭✭unclebill98


    SMERSH wrote: »
    Last month I received a cheque from my household insurance in respect of a small claim only a few k. As per the mortgage agreement the cheque was made out to the mortgage company as well as myself. After talking to the mortgage company I sent them the cheque to be lodged to my mortgage account on the strict understanding that a cheque would be issued to me for the amount of the insurance claim. I sent the cheque to them over 3 weeks ago and this week I rang the mortgage company to chase up the cheque, which they had agreed to issue this week.

    Today, I received a phone call from my bank saying that a person purporting to be from the mortgage company (the name matched a person I was dealing with) called them and enquired about transactions on my current account. They wanted to know if my mortgage payment was paid on the 3rd. Correctly the bank refused to give them this information and they called me immediately.

    Questions: Can the mortgage company do this? Surely they know they cannot obtain this information.
    Do I have any grounds for a complaint to the Financial regulator?

    They know they can not get this information. That is reportable.


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    #3
    SMERSH
    Closed Accounts Posts: 198 ✭✭SMERSH


    Reportable to whom? The mortgage company or the Financial Regulator?

    I take it that was done was not standard practice?


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    #4
    unclebill98
    Registered Users Posts: 3,816 ✭✭✭unclebill98


    SMERSH wrote: »
    Reportable to whom? The mortgage company or the Financial Regulator?

    I take it that was done was not standard practice?

    Both, but you must 1st contact them to go through there complaint process and if not happy then the regulator.


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    #5
    broker2008
    Registered Users Posts: 750 ✭✭✭broker2008


    Usually, they would wait until the latest mortgage payment has been confirmed paid before releasing cheque - he/she perhaps was trying to speed up the process. I wouldn't think there was any malice or devilment intended it was merely checking if funds could be confirmed paid.


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    #6
    IsThatSo?
    Closed Accounts Posts: 988 ✭✭✭IsThatSo?


    broker2008 wrote: »
    Usually, they would wait until the latest mortgage payment has been confirmed paid before releasing cheque

    why? if its a cheque for insurance then it has nothing to do with mortgage payments and release shouldn't be dependent on a monthly mortage payment :confused:


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    #7
    Our man in Havana
    Closed Accounts Posts: 29,476 ✭✭✭✭Our man in Havana


    They do that if there are any arrears. If there are arrears the mortgage company takes them from the insurance cheque. It is a cosy arrangement the banks have with the insurance companies.

    Now it should be easy for them to know if a person is upto date on their payments.

    As for them ringing another bank to ask about someone's account, they have crossed a line there. The OP should complain to the Regulator. I doubt he will get anywhere complaining to the mortgage company as it is probably their policy or they will deny any call was made.


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    #8
    unclebill98
    Registered Users Posts: 3,816 ✭✭✭unclebill98


    Well, the 1st thing the regulator will ask is have you contacted them regarding the issue. If you say no, they'll tell you to do so. If your not happy with there response then you go back to the regulator.

    Its always a good idea to have a response from the company your making the complaint about 1st.


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    #9
    kaiser sauze
    Registered Users Posts: 1,558 ✭✭✭kaiser sauze


    OP, did you sort out your house insurance through your mortgage broker at the time of application? I'm guessing yes.

    This is yet another good reason to sort out your house insurance separate to your mortgage application.

    Scandalous.


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    #10
    SMERSH
    Closed Accounts Posts: 198 ✭✭SMERSH


    Actually, I arranged my house insurance myself. The problem is you can't get a mortgage unless the mortgage company is down as an interested party. The insurance company issues a letter to the mortgage co saying they will promise to make cheques out in both the insured's name and the mortgage company.


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