Danske bank to close retail customer accounts

gamblor101

If they feel that they are quite entitled to close offset accounts without changing the T&Cs why are they offering a 1% interest rate reduction to these customers?

josip

kennM wrote: »

Well there isn't a disadvantage?

Only if some customers start to think being in the papers will cause Danske to have a change of heart and they ease off the pressure.
If it helps other offset customers to join the cause great.
All effort and energy must continue to be chanelled into the legal route rather than the media route.

yop

josip wrote: »

Only if some customers start to think being in the papers will cause Danske to have a change of heart and they ease off the pressure.
If it helps other offset customers to join the cause great.
All effort and energy must continue to be chanelled into the legal route rather than the media route.

In one, we are not going to let them away. 300 Offset customers, if there are only 30 that group together then it will be more powerful.

positron

Question for tracker mortgage holders - the bank is asking you to close the current account and setup a feeder account - and that is in fact the bank asking you to break the one of the conditions of the mortgage (that primary current account should be with Danske - it is in my case, I assume it's the same for everyone).

Just wondering if there's anything to be worried about here - I wouldn't want Danske / someone else come back to me in near future and tell me that I broke the terms of the contract by closing the account (even if it's as per Danske's advice).

clint_silver

yay, finally got the letter.

as I have a custody account, they basically just said, "dont do anything til ya hear more".

wonder if anyone else here could actually buy a couple of euro worth of shares just to get a custody account. facility should still be there.

would drag it out for them if nothing else.

Thoie

positron wrote: »

Question for tracker mortgage holders - the bank is asking you to close the current account and setup a feeder account - and that is in fact the bank asking you to break the one of the conditions of the mortgage (that primary current account should be with Danske - it is in my case, I assume it's the same for everyone).

Just wondering if there's anything to be worried about here - I wouldn't want Danske / someone else come back to me in near future and tell me that I broke the terms of the contract by closing the account (even if it's as per Danske's advice).

While it has no legally binding meaning, I'm changing the "I confirm the account may be closed" to "I confirm the account may be closed as per Danske Bank's request. I am happy to keep the account open for the duration of my tracker mortgage.", and I'll keep a copy of that.

It won't win any legal battles in and of itself, but if the question arises later I'll be able to point out that I was only closing it because they made me. Someone further up in this thread has already mocked the idea, but it's no skin off their nose what I write on the form. I could copy the entire works of Shakespeare onto it if I want, and it won't impact anyone else (except possibly the poor sod trying to process it).

Geuze

positron wrote: »

Question for tracker mortgage holders - the bank is asking you to close the current account and setup a feeder account - and that is in fact the bank asking you to break the one of the conditions of the mortgage (that primary current account should be with Danske - it is in my case, I assume it's the same for everyone).

Just wondering if there's anything to be worried about here - I wouldn't want Danske / someone else come back to me in near future and tell me that I broke the terms of the contract by closing the account (even if it's as per Danske's advice).

Well, they are asking customers to close their current accounts, so they can't really complain about it.

I set up a new DD from my new current ac to service the mortgage.

I tried to close my Danske current ac, but it wouldn't allow it, as I have a custody account.

positron

Geuze wrote: »

Well, they are asking customers to close their current accounts, so they can't really complain about it.

Well that might appear logical to average Joes like us, but legal teams might have different interpretations that might surprise us - that's what I am afraid of.

Also when/if Danske off-loads these mortgage to some loan-shark-turned-investor-type-firm, they might try and wiggle out of these contracts with everything at their disposal as they would have no reputation to defend.

handlemaster

positron wrote: »

Well that might appear logical to average Joes like us, but legal teams might have different interpretations that might surprise us - that's what I am afraid of.

Also when/if Danske off-loads these mortgage to some loan-shark-turned-investor-type-firm, they might try and wiggle out of these contracts with everything at their disposal as they would have no reputation to defend.

Yes best to ask for a letter from them that states this those not affect your mortgage.

dolallyoh

The Sinead Ryan piece.
http://www.independent.ie/lifestyle/property-homes/home-economics-30070054.html

SINEAD RYAN – PUBLISHED 07 MARCH 2014 02:30 AM

I am a Danske mortgage holder with an 'offset' mortgage since 2006 but all my accounts have been closed as a result of their withdrawal from Ireland.

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As a result, my repayments are going to increase as the savings (approx €233 per month) using the offset will be lost. By my calculation that's €50,000 over the remaining 18-year term. I had also been enticed to open a 'Prestige' account which offered an extra 0.45pc mortgage rate discount and feel I'm losing out. Should I go to the Ombudsman?

Sinead says: Offset mortgages use any balance in current or savings accounts to reduce the interest owing in any one month on a mortgage. They were a common gimmick offering during the boom to entice customers to move all their accounts to one bank. In Danske's case, they make up less than 2pc of their mortgage book, all on variable rate loans.

I understand Danske has been in touch with you to confirm that although the mortgage stays with them, it now must be serviced by another provider. Obviously you will lose the offset benefits. They claim the original contract allows for the discontinuation of Offsets and add that, as an incentive, "Danske will reduce the rate by 1pc on all Offset mortgages regardless of the extent to which the Offset option was utilised by the customer and will continue for the remaining term of the mortgage.

Where a customer also has a mortgage discount as part of their current account package, the 1pc Offset discount will be applicable in addition to that discount, despite the closure of their current account package. For clarity, where a customer had a Prestige current account package and was availing of the 0.45pc mortgage rate discount, the new rate on that mortgage will have an overall discount of 1.45pc for the remaining term of the mortgage".

In your case, you must do the maths to see if that's compensation enough. If not, by all means take your case further, although the Financial Services Ombudsman can only make a ruling if he feels Danske broke its contract with you, or acted unfairly.

Will my mortgage be re-valued?

Q. There has been a lot of talk about IBRC's loans being sold off at a discount price. When this happens, will my old Irish Nationwide mortgage be re-valued and whom will I be paying?

Sinead says: It has always been the intention to sell off the IBRC loan book and the taxpayer taking a hit to make them attractive to a buyer – probably a large hedge fund, most likely outside Europe. The sale will be by auction of lots. Mr Noonan has already ruled out allowing individual borrowers bid on their own loans, which is a great shame and also means that you still owe the full amount, and the full repayments to the new owner.

Stephen Curtis of the Irish Mortgage Holders Organisation says, "Currently there are two final bidders for the loans but they have not been identified as yet. When the transfer is completed you will make mortgage payments to the new owners of the loans, or potentially a third party that they may appoint to manage the loans. Your mortgage balance will remain the same and won't be revalued, ie if your mortgage balance is €100,000 today it will still be €100,000 after the transfer".

dirtyblaster

Well done everyone, its great to see such a response. I have no doucuments with regard my mortgage, but of couse have statements and have never missed a payment. Therefore I have nothing to go on or approach a Solictor, gutted. I still intend to fight my case, but the two watchdogs are toothless tigers.

Many thanks all,
Dirtyblaster.

cheezymouse

Folks,

I'm a bit confused about the article in the independent. The piece that says "the new rate on that mortgage will have an overall discount of 1.45% for the remaining term of the mortgage"... so

1. The new rate applies "over the term of the mortgage"... that's new info, right? So they can't bring the interest rate applied to "offset mortgages" in line with the SVR rate? I didn't hear that from the bank earlier in the week when I rang - they didn't know for sure at the time. Is this definite, and does this "in effect" mean that while Offset Mortgage holders won't be able to offset, their mortgage will track at 1.45% under the standard variable rate (assuming you are entitled to the 0.45% Prestige discount)? << just editing this - I think this is incorrect. It's not tracking off the Danske SVR because that rate is 4.95%.>>

2. In the event of a sale of the mortgage book:
- would the institution that purchases the mortgage book be bound by these terms?
- the Danske SVR is one of the highest in Ireland (as far as I understand, but I'm open to correction here). If another bank bought the mortgage book, and their SVR was lower than Danske's, would the offset folks get a new rate of "New SVR - 1.45%")?

3. If danske are saying there is "no change to the general terms of the offset mortgages", are they going to issue some legally binding documentation to state any of the above?

It's difficult to make an informed decision without... well, having all the information. Its a pity that the full terms surrounding the 1% offering weren't explained in the original letter to customers.

Trebor Gluck

What is the story with the Prestige account discount on std var rate mortgages ?

Hotblack Desiato

Seems to me Danske are well within their contractual rights to force the closure of accounts linked to offset mortgages...


... but the mortgage holders are well within their rights to claim that the mortgage was mis-sold on the basis of the benefit which would accrue from the offset over the entire life of the mortgage.

After all, we were all supposed to 'do the math' when taking out a loan, and many people did, and some of them figured out the offset was the way to go on that basis. It's not as if the Danske standard rates on offer were at all competitive, they were well known for offering discounted variable rates years ago which they then jacked up. I doubt that anyone who chose an offset mortgage with them would have been just as happy to choose that mortgage if the offset wasn't there.

Anyway, I've no dog in that fight, I've a tracker with ICS, and I'm two direct debits away from being Danske-free forever.

Rock Steady Edy

positron wrote: »

Question for tracker mortgage holders - the bank is asking you to close the current account and setup a feeder account - and that is in fact the bank asking you to break the one of the conditions of the mortgage (that primary current account should be with Danske - it is in my case, I assume it's the same for everyone).

Just wondering if there's anything to be worried about here - I wouldn't want Danske / someone else come back to me in near future and tell me that I broke the terms of the contract by closing the account (even if it's as per Danske's advice).

I wrote to Danske this week with a copy of our mortgage T&Cs that say a current account must remain for period of the mortgage.

I have asked them to put it in writing that the other T&C (including that of the tracker rate), will not be compromised by their own request to close this feeder account.

handlemaster

Rock Steady Edy wrote: »

I wrote to Danske this week with a copy of our mortgage T&Cs that say a current account must remain for period of the mortgage.

I have asked them to put it in writing that the other T&C (including that of the tracker rate), will not be compromised by their own request to close this feeder account.

I think that's a wise decision

handlemaster

Rock Steady Edy wrote: »

I wrote to Danske this week with a copy of our mortgage T&Cs that say a current account must remain for period of the mortgage.

I have asked them to put it in writing that the other T&C (including that of the tracker rate), will not be compromised by their own request to close this feeder account.

I think that's a wise decision

Not my real name

I got my letter to close my easy account by June. I'm going to take the advice of others here and ask for confirmation that my t&c's won't be changed.

So what's the chances of keeping our tracker if we want to move house?
Is it a case of waiting to see who our loans are sold to?

I'm starting to get a feeling I'll be stuck in this house for another 18years :-(

DiscoFever

Has anyone noticed any strange activity on their current account today? I was just checking my account online and there are various transactions dated today that I have not made. For example my wages are debited and credited numerous times with todays date - there is a debit for every credit so balance is correct, its like my wages were withdrawn and lodged serveral times. The same is appearing for another lodgement amount to my account. The overall balance is correct so I am wondering if its a SEPA or system problem. I have mailed Danske (as I cant get through to their phone line) but it just looks very odd. Anyone else?

DiscoFever

Finally got through to customer service and he has to have someone call me back as he basically hasnt a clue why the transactions are there. I have 12 transactions on my account debiting and crediting equal amounts, in effect the last 6 lodgements to my account have been cancelled and then re-instated. So it looks like I was massively overdrawn earlier today and then lodged it all back in - it's all very weird!

ABC101

I just logged on there... no... no problems with the balance of the current account, well no problems for the time being anyway.

.BrianJM

I had similar, but only 10 transactions. It'll be interesting to see if they are included in statement.
I'm subscribed to SMS alerts and have received none...
...Yet.

DiscoFever

Glad its not just me so! It must be a system problem? My balance is right but I don't want those transactions appearing on my statement if its a system problem - I dont want it to look like I was overdrawn when I wasnt, hmmmm it will be interesting to see what they say when/if they call back.

.BrianJM

Just got the SMS.

homer911

Same here - transactions from 14/2 and 28/2 debited and credited

You are not overdrawn until end of day so I'm sure you will be fine.

Interestingly for me it was two lodgements that were duplicated and then reversed..

Tim Riggins

same here

Thargor

Any of you mortgage holders tempted to stop paying over this?

cunnijo

ABC101 wrote: »

I just logged on there... no... no problems with the balance of the current account, well no problems for the time being anyway.

You're lucky. I too experienced the scenario the Discofever and some others had with the debiting and crediting a few times all on todays date along with the SMS. Rather strange goings on

All that matters is that there is no money lost/taken.

ABC101

Thargor wrote: »

Any of you mortgage holders tempted to stop paying over this?

Ahhh.... no... if I owe 200K, I owe 200K... and its my job to pay it back, even if I am in neg equity etc.

DiscoFever

Still no idea what is going on, surprisingly they never called me back!