Bank is screwing me around, what are my rights?

Beta Ray Bill

Hi All

I am in quite an annoying situation.
I was a member of Halifax (Current account holder), while a member there, I took out a loan from another Bank: Tesco Personal Loans (which were underwritten by Ulsterbank)

Everything was going fine in relation to Direct Debits and my loan being paid off in general until Halifax decided to pull out of Ireland. Tesco Loans had also pulled out and now Ulster bank were directly responsible for those loans.

To that end I decided to move my current account from Halifax to Ulsterbank using the Ulsterbank switching process. This turned out to be a disaster.
None of my standing orders were transferred over.
My Savings account was not set up
and none of the Direct Debits were transferred over either.

I ended up having to recreate all my direct debits and clearing the remainder of a small loan which I had with Halifax as Ulster bank just could not set up the direct debit.

However the reason I am posting here is in relation to the Ulsterbank (Tesco) loan.
I have had multiple conversations with them on the phone about setting up the direct debit on my Ulsterbank Current account to my Ulsterbank loan. (for some reason I cannot set up a standing order)

As a result of them not setting up the direct debit I missed a payment in may (which I then paid a week later after they called me telling me the payment was missed. But only after I called them first to tell them the Direct Debit wasn't set up). After this incident I was promised that it would all be in order for the next payment date.

Then today I was going over my bank statements and noticed that they haven't taken payment in 2 months. I rang them to see what was wrong. And the girl on the other end said No Direct Debit had been set up and that I would need to pay 2 months in one go straight away.

So that's 3 missed payments and 2 months in arrears because these people cannot set up a DD!? I am unsure whether or not I'm going to be charged additional interest or not.

I'm fuming over this as I would imagine I have spent at least 4 or 5 hours over the past 3 months on the Phone to Ulsterbank trying to get this (The simplest of tasks) sorted

What are my rights here?
As far as I am concerned this is entirely their fault. I feel I have fulfilled my obligation to keep up my payments by trying to get them to set up a direct debit. (Hence the many Many Phone calls)

For anyone that care's the 2 months combined is €900 approx (quite a hit)
And worst of all. Had I not rang today I don't think would have rang me AT ALL! and allowed my account to go into 3 months (Or more) arrears.

And on top of all that I am trying to get a mortgage. The above will appear in a credit report check on me from any other bank and looks crap and seriously hampers my chances of obtaining a mortgage.

:mad:

Thanks for reading
G.

bills

Write to ulster bank & complain in writing re all this & see what they come back to you with.

Go into the bank & fill in aform for direct debit & ask for a copy of this. Keep this in case you have future problems.I would be checking my bank account regularly online as well to make sure everything in order.

Xavi6

Did the bank not issue you with an arrears notice when the loan was more than a payment behind? I would have thought that they would have sent you something formal or at least had their Collections department call you.

I am unsure whether or not I'm going to be charged additional interest or not.

You will pay more interest because the amount you should have paid off is still on the loan. Say your loan is 5000 (random figure). It would have been reduced by 450 after month one then a further 450 after month two. Therefore month one interest would have been calculated on 4550 and month two on 4100. However, you have been charged on the full 5000.

What are my rights here?

I would be demanding an interest adjustment based on the fact that it was bank error. The amount of interest in the difference will be minimal (to the bank) so it won't be worth the hassle for them not to do it.

If they don't sort you out then threaten to go to the ombudsman. Every complaint referred to the ombudsman costs the bank a fee so they will want to avoid that.

You will have to make the payments though to get the loan out of arrears.

unclebill98

bills wrote: »

Write to ulster bank & complain in writing re all this & see what they come back to you with.

Go into the bank & fill in aform for direct debit & ask for a copy of this. Keep this in case you have future problems.I would be checking my bank account regularly online as well to make sure everything in order.

Don't bother writing. A waste of your time.

Xavi6 wrote: »

Did the bank not issue you with an arrears notice when the loan was more than a payment behind? I would have thought that they would have sent you something formal or at least had their Collections department call you.



You will pay more interest because the amount you should have paid off is still on the loan. Say your loan is 5000 (random figure). It would have been reduced by 450 after month one then a further 450 after month two. Therefore month one interest would have been calculated on 4550 and month two on 4100. However, you have been charged on the full 5000.



I would be demanding an interest adjustment based on the fact that it was bank error. The amount of interest in the difference will be minimal (to the bank) so it won't be worth the hassle for them not to do it.

If they don't sort you out then threaten to go to the ombudsman. Every complaint referred to the ombudsman costs the bank a fee so they will want to avoid that.

You will have to make the payments though to get the loan out of arrears.

The loan should have been flagged for been arrears. A letter would have been sent for this. You would not have gotten a letter for missed payments cause the DD was not set up.

If the loan is fixed you'll not be paying any extra interest charges. IIRC Tescos only did fixed rate.

I think the OP understands they have to pay up the arrears but they are quite right that they are not at fault here. Make and appointment to see your branches SQA(Service Quality Advisor). Explain what's happened and ask for them in investigate and refund you all extra charges if any and give them all proof if out of pocket expenses for full refund. Do not threaten them with the Ombusdman(be nice) but be sure to let them know your unhappy with the service they are provided and are fed up with getting no where.

Ask for a Concern Ref Number to make sure they take it forward for you. Ask for a final response on the matter and when you get it, if your not happy with it then can you only go to the Ombudman.

Xavi6

unclebill98 wrote: »

Ask for a final response on the matter and when you get it, if your not happy with it then can you only go to the Ombudman.

Apologies if I wasn't clear but the above is what I meant by

If they don't sort you out then threaten to go to the ombudsman

It's a last resort if the bank aren't providing a satisfactory response.

unclebill98

Xavi6 wrote: »

Apologies if I wasn't clear but the above is what I meant by



It's a last resort if the bank aren't providing a satisfactory response.

IMHO threatening them gets you know where, thats not aimed at you Xavi6, its just a general thing. They will do the same thing regardless and provide the OP with the same answer. You'll get more out of the SQA if your not eating the head off them.

Xavi6

unclebill98 wrote: »

IMHO threatening them gets you know where, thats not aimed at you Xavi6, its just a general thing. They will do the same thing regardless and provide the OP with the same answer. You'll get more out of the SQA if your not eating the head off them.

I agree that it's not a good idea to go in all guns blazing shouting the odds etc, you're spot on. Deal with the branch staff/SQA first and see how understanding they are. Most likely they will want it sorted at the first point of contact anyway so should be quite responsive.

I do think though that it's good for the OP to know every option available to him even if it's the very last resort.