Bank account cancelled over one missed payment?

Baby75

I have just got off the phone with my poor sister,any way this is whats just happened her and I wonder if any one has came across the same thing or any words of advice.

In January she missed her loan payment with her bank, she rang them and asked if she could pay extra on her payments each month to clear arrears. the girl she spoke to said yes, that would be fine(first mistake she didn't take a name or make a note of date etc)

so she has kept her promise and has paid her loan amount and transferred the extra money each monrth. so fast forward to today she went to take money out of the bank and her account has been cancelled , she panicked and came home and rang 24 hours banking and they have told her to get in touch with the branch.

but now her is her second mistake.she only opened letters from the bank (she is terrible for opening letters) but they have advised her that they are closing her account and taking all money left in her account and also they are taking her to court for the remainder of the money.

so needless to say she is very upset as she thought it was OK as she was making good on her payments. now she has all her bills paid for the month but as she gets paid by the month she has now money at all. is this legal seems a bit harsh for one missed payment and she was paying that back on top of her loan amount each month and has proof of that.

any advice or insight to this, <SNIP>. my heart goes out to her but she has learned a very hard lesson (always open your letters) . plus the added worry over been taking to court for the remainder of the money. what way will a judge look on this.:(

Gordon

How do you know it is only one missed payment if she hasn't opened her letters until now?

Baby75

Gordon wrote: »

How do you know it is only one missed payment if she hasn't opened her letters until now?

She has gone through all her statements to double check and its definitely only one missed payment

Toots

It sounds to me like she has missed more than one payment, or else she never fully cleared off the arrears and the loan has been behind for a while. How much of a loan are we talking about here? And how much are her monthly payments?

In my experience, banks don't generally tend to go down this route unless accounts have gone very bad.

dotsman

That is definitely very harsh and I'd imagine someone (either your sister or her bank) is mistaken regarding the state of her arrears. A (decent) bank would only move to close the account and recover the money in this way if they felt she was a hopeless cause.

Her not reading her mail is a big concern. A bank does not like being ignored when a person has stopped repaying their loan. Think of it on a personal level. If you had loaned a friend some money and they were paying you back month by month. Then suddenly they stop paying you back and won't answer your calls/respond to your texts/won't go out any night you are going out etc. You too would be a little miffed! For banks, they are even more panicky. They don't know your sister on a personal level, and if she hasn't responded to any of their mails, they have every reason to be concerned. But as I said - only one missed repayment and she's since being repaying seems a little minor for the relationship to sink that low!

Do you mind telling us what bank she is with? Does she have any previous history of missing payments, going over credit limits etc?

Baby75

dotsman wrote: »

That is definitely very harsh and I'd imagine someone (either your sister or her bank) is mistaken regarding the state of her arrears. A (decent) bank would only move to close the account and recover the money in this way if they felt she was a hopeless cause.

Her not reading her mail is a big concern. A bank does not like being ignored when a person has stopped repaying their loan. Think of it on a personal level. If you had loaned a friend some money and they were paying you back month by month. Then suddenly they stop paying you back and won't answer your calls/respond to your texts/won't go out any night you are going out etc. You too would be a little miffed! For banks, they are even more panicky. They don't know your sister on a personal level, and if she hasn't responded to any of their mails, they have every reason to be concerned. But as I said - only one missed repayment and she's since being repaying seems a little minor for the relationship to sink that low!

Do you mind telling us what bank she is with? Does she have any previous history of missing payments, going over credit limits etc?

yep she should of opened her letters from the bank alright. i dont think they sent many warnings either i might be mistaken though ild have to double check with her.
she has been with this bank years and had borrowed and repaid in full, she had acredit card with them aswell and has cleared it and got rid of it. think her loan amount is about 8000.

I wasnt sure if i could name the bank, I dont mind if it is ok

dotsman

Baby75 wrote: »

yep she should of opened her letters from the bank alright. i dont think they sent many warnings either i might be mistaken though ild have to double check with her.
she has been with this bank years and had borrowed and repaid in full, she had acredit card with them aswell and has cleared it and got rid of it. think her loan amount is about 8000.

I wasnt sure if i could name the bank, I dont mind if it is ok

Up to a mod I guess, but if you name it (the bank as opposed ot the actual branch) and a boardsie works there, they might be able to shed some light (i.e. if your sister's situation sounds in line with the banks policy).

As I said, unless there is some misunderstanding between your sister and her bank, that is very harsh (especially if it's one of the main Irish banks).

Toots

If you want to name the bank, do so. Considering that it is a 3rd party being discussed we do not have the full facts, only what the OP's sister has told her.

Keep all posts factual.

If anyone speculates on whether or not the institution is in trouble, acting improperly, or anything else of that nature, they'll get banned.

Baby75

Toots85 wrote: »

If you want to name the bank, do so. Considering that it is a 3rd party being discussed we do not have the full facts, only what the OP's sister has told her.

Keep all posts factual.

If anyone speculates on whether or not the institution is in trouble, acting improperly, or anything else of that nature, they'll get banned.

Is it better if I leave the name out , so if they are may be wrong and some one can give a little advice on what she should do thanks

Toots

It sounds pretty unusual for them to close her account and take her to court for one missed loan payment. Is the account definitely closed or just 'blocked'? How long ago did she miss the payment originally, and was the loan ever brought back on track since then or has it been in arrears since?

Toots

Baby75 wrote: »

Is it better if I leave the name out , so if they are may be wrong and some one can give a little advice on what she should do thanks

You can add the bank name if you wish, as I said, posts must be factual and not speculative. Personally I can't see how having people randomly guessing what might have happened would be more helpful than posters who work for the institution being able to offer a more informed explanation as to what might have happened. It's entirely up to you though.

dotsman

<SNIP>

Definitely not the sort of bank to act like this willy-nilly. My guess is that the answer lies within the mails she was sent. They would have outlined in these exactly what they expect from her and she hasn't followed it precisely.

I would also love to here the content of the first phone call (around upping her repayments every month to pay off the arrears). Their seems to be a miscommunication there. Either the bank official and your sister misunderstood each other, or the bank official did agree to change the terms of the loan and subsequently didn't. Again, if the bank official did any actions, this would have been confirmed in writing to your sister at the time. With banks, everything along these lines is done in writing (or done via phone and followed up with written confirmation). You sister broke the terms of the loan (contract), and then understands that the bank were willing to change the conditions of the loan (contract). That would definitely have been confirmed in writing to her.

Baby75

Toots85 wrote: »

It sounds pretty unusual for them to close her account and take her to court for one missed loan payment. Is the account definitely closed or just 'blocked'? How long ago did she miss the payment originally, and was the loan ever brought back on track since then or has it been in arrears since?

It seems she missed two payments a year ago but agreed to have it added on to the end of the loan term. she missed her payment in January so was paying an extra 200 on top of loan repayment to cover it. she did speak to some one but doesn't have a name. but they had said that was ok for her to do. so then she just took it for granted it was. now I did misunderstand her as I thought they took all her money. she got paid on Tuesday for the month. but she had an over draft of 500 and paid all her bills and was relying on the overdraft to see her through the next 4 weeks. don't know how she was going to manage that. she knows she has no one to blame but her self but may be with the way things are banks are having a one stroke and your out. her bank account is closed. she is trying to reach some one to see can she sort it out asap. at least avoid court as I Say the bank would rather have the money back with out that hassle.

Baby75

dotsman wrote: »

<SNIP>

Definitely not the sort of bank to act like this willy-nilly. My guess is that the answer lies within the mails she was sent. They would have outlined in these exactly what they expect from her and she hasn't followed it precisely.

I would also love to here the content of the first phone call (around upping her repayments every month to pay off the arrears). Their seems to be a miscommunication there. Either the bank official and your sister misunderstood each other, or the bank official did agree to change the terms of the loan and subsequently didn't. Again, if the bank official did any actions, this would have been confirmed in writing to your sister at the time. With banks, everything along these lines is done in writing (or done via phone and followed up with written confirmation). You sister broke the terms of the loan (contract), and then understands that the bank were willing to change the conditions of the loan (contract). That would definitely have been confirmed in writing to her.

I agree there has to be some misunderstanding some were along the lines.
As far as I'm aware she didn't get a letter, but Ill get her to check in case she did and if that's the case she might be able to get it sorted. she actually is very upset as she doesn't want to change banks. she opened that account when she was 7 so she has her bank account for 25 years.

my question is will they be willing to work it out with her.
Thanks

Toots

That all sounds pretty suss. I'm not aware of any 'one stroke and you're out' policy operating in any of the big Irish banks.

It seems she missed two payments a year ago but agreed to have it added on to the end of the loan term

Again, I've never seen an arrangement like this before either. Did she receive any agreement in writing to this effect? Are you sure she didn't restructure the loan into a totally new one? If the loan has been in arrears for over a year, then that would explain why her account has been closed. Especially if she wasn't responding to correspondence from the bank. Was the letter she received explaining that she was going to be taken to court sent by the bank or by a solicitor acting on behalf of the bank?

I think at the moment, her priority needs to be avoiding going to court. Would she be in a position at the moment to pay off what she owes the bank? If there is a solicitor involved at this stage, she will be liable for any costs incurred there too. My advice would be for her to ring her bank first thing on monday morning, and get the number for the Credit Control department. Realistically they're the only people who can give her accurate information about what is happening at the moment and if there's any way to avoid being brought to court.

Victor

I imagine this is a case of the bank being worried that they weren't receiving any further communication in response to their letters. For all they knew, she could have skipped the country (current account transactions aside).

Baby75

Toots85 wrote: »

That all sounds pretty suss. I'm not aware of any 'one stroke and you're out' policy operating in any of the big Irish banks.

I was just thinking may be with the hard times that banks are being harder on people who are late on repayments sorry for confusing you.


Again, I've never seen an arrangement like this before either. Did she receive any agreement in writing to this effect? Are you sure she didn't restructure the loan into a totally new one? If the loan has been in arrears for over a year, then that would explain why her account has been closed. Especially if she wasn't responding to correspondence from the bank. Was the letter she received explaining that she was going to be taken to court sent by the bank or by a solicitor acting on behalf of the bank?

I think at the moment, her priority needs to be avoiding going to court. Would she be in a position at the moment to pay off what she owes the bank? If there is a solicitor involved at this stage, she will be liable for any costs incurred there too. My advice would be for her to ring her bank first thing on monday morning, and get the number for the Credit Control department. Realistically they're the only people who can give her accurate information about what is happening at the moment and if there's any way to avoid being brought to court.

I have seen it before being able to add a payment on to the end, we did it once with our loan when my Dh was out of work it was a different bank but they suggested it.

Thanks :)I'm passing on that to her right now, oh the letter she received about the court is from the bank. no she wouldn't be able to pay all of the loan in one go at the minute unfortunately.

Thank so much for your help

Toots

You're welcome.

delos

Toots85 wrote: »

My advice would be for her to ring her bank first thing on monday morning, and get the number for the Credit Control department. Realistically they're the only people who can give her accurate information about what is happening at the moment and if there's any way to avoid being brought to court.

She also wants to get herself down to her branch ASAP and talk to them in person. A few years ago I was a bit "foolish" and thought I was doomed. The good people in my branch sat down and worked out with me the best way to clean up the mess and I'm sure they will do the same if the circumstances are as you describe. I doubt they will want this to go to court unless they feel there is no other way.
When its sorted she wants to make sure that the loan repayments are set up on a standing order that takes the money no more than 3 days after she is paid - I'm assuming she is paid directly into her bank account - and that way she won't miss a payment. When this gets sorted out she wants to be a model borrower and never miss another payment. If the bank think for one moment she is taking the piss it will be a lot harder.

She needs to start talking to her bank - she will feel a lot better when she has.

leitrim lad

firstly i do not want any silly warnings or bans for this post as it is advise from expierence and as much as i would love to name names i wont.

www.mabs.ie go there get advise

then get a solicitor like i did with the two main banks, they will listen then, on doing that draw up a contract to restructure the loan over an affordable period and do not accept any charges or interest fees, or any bullsh2t from them either.
it is not an offence to owe money, the majority of the country is in arrears, however it is an offence to close a citizens account, without their signature, unless it is being mismanaged.
and it is no harm to remind the bankers whom are still up on their pedastels for what reason i dont know, who exactly kept the roof over their heads, when they blew the boom ,and question as to wheather or not they have foreclosed on the billions, they squandered in lucky bags to people who had no intention of ever paying it back, do this in the most polite way and it will get up their nose,
your sister also has more rights than the bank,in her favour,and they cannot take possession of her personal money, or assets unless they actually have a court order in place, so her money should be re instated monday morning, but i think a good solicitor would sort it out in 20mins for her, took 2 days for me but i imagine the amounts were different and it was business dealings, but it is done and dusted now they cannot go back on it for me .

Baby75

Toots85 wrote: »

You're welcome.

do you think she will be able to get it sorted she is just wonderig

Baby75

leitrim lad wrote: »

firstly i do not want any silly warnings or bans for this post as it is advise from expierence and as much as i would love to name names i wont.

www.mabs.ie go there get advise

then get a solicitor like i did with the two main banks, they will listen then, on doing that draw up a contract to restructure the loan over an affordable period and do not accept any charges or interest fees, or any bullsh2t from them either.
it is not an offence to owe money, the majority of the country is in arrears, however it is an offence to close a citizens account, without their signature, unless it is being mismanaged.
and it is no harm to remind the bankers whom are still up on their pedastels for what reason i dont know, who exactly kept the roof over their heads, when they blew the boom ,and question as to wheather or not they have foreclosed on the billions, they squandered in lucky bags to people who had no intention of ever paying it back, do this in the most polite way and it will get up their nose,
your sister also has more rights than the bank,in her favour,and they cannot take possession of her personal money, or assets unless they actually have a court order in place, so her money should be re instated monday morning, but i think a good solicitor would sort it out in 20mins for her, took 2 days for me but i imagine the amounts were different and it was business dealings, but it is done and dusted now they cannot go back on it for me .

She has alreay contacted mabs. it is a real wake up call Im certainly going to learn from this.

Toots

Baby75 wrote: »

do you think she will be able to get it sorted she is just wonderig

It depends how far it has gone. Really credit control are the best people to answer that. I couldn't say myself. She could also try going down to her branch, but some accounts that are in debt recovery aren't looked after in branches any more and the branches can't even access them.

Toots

leitrim lad wrote: »

and it is no harm to remind the bankers whom are still up on their pedastels for what reason i dont know, who exactly kept the roof over their heads, when they blew the boom ,and question as to wheather or not they have foreclosed on the billions, they squandered in lucky bags to people who had no intention of ever paying it back, do this in the most polite way and it will get up their nose,

leitrim lad, this forum is for advice on banking products and services, not bank bashing. Keep posts constructive and helpful if you want to avoid 'silly warnings or bans'.

leitrim lad

keep your bans to your self i did give advise ,on my expierence and i didnt bash any particular bank so retract your little warning

Toots

leitrim lad banned for 1 week

stepbar

leitrim lad wrote: »

firstly i do not want any silly warnings or bans for this post as it is advise from expierence and as much as i would love to name names i wont.

www.mabs.ie go there get advise

then get a solicitor like i did with the two main banks, they will listen then, on doing that draw up a contract to restructure the loan over an affordable period and do not accept any charges or interest fees, or any bullsh2t from them either.
it is not an offence to owe money, the majority of the country is in arrears, however it is an offence to close a citizens account, without their signature, unless it is being mismanaged.
and it is no harm to remind the bankers whom are still up on their pedastels for what reason i dont know, who exactly kept the roof over their heads, when they blew the boom ,and question as to wheather or not they have foreclosed on the billions, they squandered in lucky bags to people who had no intention of ever paying it back, do this in the most polite way and it will get up their nose,
your sister also has more rights than the bank,in her favour,and they cannot take possession of her personal money, or assets unless they actually have a court order in place, so her money should be re instated monday morning, but i think a good solicitor would sort it out in 20mins for her, took 2 days for me but i imagine the amounts were different and it was business dealings, but it is done and dusted now they cannot go back on it for me .

First - remove your attidute because it serves no purpose in this forum

Second - I have doubts about your sisters real financial suitation. There's no bank that would just close an account without proper reason. I guess at the mo that she has bigger debt up an above the loan she is repaying at the mo. To be fair if she is ignoring the letters that have been sent to date well then she is being very foolish indeed. Good luck with it all but your sister needs to face up to reality and sort her own mess out.

Baby75

stepbar wrote: »

First - remove your attidute because it serves no purpose in this forum

Second - I have doubts about your sisters real financial suitation. There's no bank that would just close an account without proper reason. I guess at the mo that she has bigger debt up an above the loan she is repaying at the mo. To be fair if she is ignoring the letters that have been sent to date well then she is being very foolish indeed. Good luck with it all but your sister needs to face up to reality and sort her own mess out.

Your right she does, Ive said so my self and she agrees, its only with her bank she owes no other money she even repaid her two creditcards last year and got rid of them. In her eyes she thought she was ok as she was making her repayments and paying extra each month to cover the missed payment. but I would say we will know how it will go on Moanday when she gives them a ring Ill let you know how she got on as it is a little strange and Im sure they will explain to her exctaly why they did do it.

thanks every one for the input its good to hear what other people think good and bad

Baby75

hello well the update is:

Account is not cancelled at all ?? Im some what confused my sister rang the bank this morning and they informed her her account was not cancelled but her bank card was, as they had received letters back with not know at this address on them. they are happy with her repayments on her loan and are happy for her to continue paying as she has been doing. she still has her overdraft as well so she just needs to wait for a new passcard. she thinks the letter was to just scare her in to contacting them worked any way