Danske bank to close retail customer accounts

ABC101

All cards now blocked, current account gone, Custody account empty but Mortgage account still visible.

yop

ABC101 wrote: »

All cards now blocked, current account gone, Custody account empty but Mortgage account still visible.

I see that and the interest to be added with 10 days to go in our "month" is now 190 euro more than it was before we were forced to take our money out. So looking at 250 euro a month extra interest! That just crazy!
Its depressing

ABC101

yop wrote: »

I see that and the interest to be added with 10 days to go in our "month" is now 190 euro more than it was before we were forced to take our money out. So looking at 250 euro a month extra interest! That just crazy!
Its depressing

Yeah.... that is a big loss alright.

But to be honest... with all the financial uncertainty, rise of Socialism, 2016 elections not too far off.... I think it would be best to put any spare cash you have and put it into reducing debt. Otherwise people with cash may find themselves getting robbed by the state!

robbe

yop wrote: »

I see that and the interest to be added with 10 days to go in our "month" is now 190 euro more than it was before we were forced to take our money out. So looking at 250 euro a month extra interest! That just crazy!
Its depressing

Chin up - when the FSO springs into action it will all get sorted! I've no great hope that they will be of huge assistance - I've received about 3 letters all saying essentially the same thing - formal investigation will commence, will commence soon, will commence and take 4-6 weeks. Hardly hard hitting consumer advocacy displayed so far but you never know.....Quite a significant impact and perhaps this will prove actual loss when it comes to determining your compensation!

You'd have to think that Danske factored in a potential that this would be challenged in some way and thus wouldn't appeal if small awards/redress was awarded. Here's hoping their arrogance will work against them in the investigation process.

handlemaster

Settlements to Danske at this stage is less than pocket change

Thoie

Just got a letter from them today (dated May 14th).

Dear Ms Thoie
Blah blah blah blah

We are now writing to advise you of our intention to appoint Pepper Finance Corporation (Ireland) Limited trading as Pepper Asset Servicing ("Pepper") to service your Mortgage and/or Personal Loan Account(s).

This appointment will take place on 16 June 2014.

From the appointment date all day to day administrative services for your Mortgage will be managed by Pepper.

This is not a sale of your accounts, and there is no change to the T&Cs. All obligations remain due and owing to Danske Bank
Pepper may contact you from time to time...
Central Bank Code of Conduct on Mortgage Arrears will contine to apply
Consumer Protection Code will continue to apply.

Not entirely unexpected, but I'm curious about the bit where Pepper may contact me from time to time. Wonder how they swung that one by the Data Protection crowd?

http://www.peppergroup.ie/pdf/Pepper-Danske-Final-16-May-2014.pdf

handlemaster

Danske must be praying for a buyer for these morgage accounts

Fred Swanson

This post has been deleted.

positron

Fred Swanson wrote: »

I reckon Pepper will buy them eventually.

Yep, possibly. Googled pepper in news section and I have a bad feeling to where this is all heading.

Jimpopo

Hello, am new to boards.ie so forgive me if I'm in the wrong place. I have offset mortgage with Danske too and am thoroughly hacked off with their treatment and just got letter yesterday ( dated 2 weeks ago) advising that we're all going to pepper!! they're changing our hours of support, removing Ebanking and not updating app, oh and we won't be getting monthly statements either. Tried to solve this with danske when they announced their withdrawal. Any contact has fallen on deaf ears both here and in Denmark and have gone as far as I can with danske, so am now awaiting decision from financial ombudsman. There's also a Facebook page I just found whilst googling this...
Danskeripoff

dolallyoh

You are in exactly the right place. Will their actions cost you much money?

Jimpopo

dolallyoh wrote: »

You are in exactly the right place. Will their actions cost you much money?

In short, the cost of 2 stamps.
The exact course of action I followed is I formally complained to danske ( stamp one) and they wrote back telling me that they had investigated and if I wanted to go further I could take it to the financial ombudsman. You need a valid complaint like alleging a miss selling of a product or a lack of communication. I also asked them initially to facilitate a move to another lender because I felt and still feel that at some time in the future we'll need to get another mortgage and the cost of solicitors valuations and bank charges will cripple us, that's assuming we can get another mortgage based on our current situation and our house being worth half of what we've paid! At this point they sent us a copy of their press release which somewhat incensed us.

I then filled in the online complaint form in essence complaining that an offset is not an offset unless you've got something to offset it against and that when THEY SOLD ME an offset 8 yrs ago they are effectively changing the product that they sold me and they're refusing to deal with us
.
The second stamp was to send some supporting documents and both my wife and I had to sign the printed out initial complaint to the ombudsman.
I would advise all to complain to danske directly and get the ball rolling with the ombudsman as you can't involve the ombudsman until you've complained formally to the bank.


Oh, and by the way, I offered to go into mediation but danske refused.

handlemaster

Jimpopo wrote: »

In short, the cost of 2 stamps.
The exact course of action I followed is I formally complained to danske ( stamp one) and they wrote back telling me that they had investigated and if I wanted to go further I could take it to the financial ombudsman. You need a valid complaint like alleging a miss selling of a product or a lack of communication. I also asked them initially to facilitate a move to another lender because I felt and still feel that at some time in the future we'll need to get another mortgage and the cost of solicitors valuations and bank charges will cripple us, that's assuming we can get another mortgage based on our current situation and our house being worth half of what we've paid! At this point they sent us a copy of their press release which somewhat incensed us.

I then filled in the online complaint form in essence complaining that an offset is not an offset unless you've got something to offset it against and that when THEY SOLD ME an offset 8 yrs ago they are effectively changing the product that they sold me and they're refusing to deal with us
.
The second stamp was to send some supporting documents and both my wife and I had to sign the printed out initial complaint to the ombudsman.
I would advise all to complain to danske directly and get the ball rolling with the ombudsman as you can't involve the ombudsman until you've complained formally to the bank.


Oh, and by the way, I offered to go into mediation but danske refused.

Everyone should be getting onto the ombudsman. Perhaps if someone could put a link up etc to their site and complaint forms etc this would help

dolallyoh

Jimpopo wrote: »

In short, the cost of 2 stamps.
The exact course of action I followed is I formally complained to danske ( stamp one) and they wrote back telling me that they had investigated and if I wanted to go further I could take it to the financial ombudsman. You need a valid complaint like alleging a miss selling of a product or a lack of communication. I also asked them initially to facilitate a move to another lender because I felt and still feel that at some time in the future we'll need to get another mortgage and the cost of solicitors valuations and bank charges will cripple us, that's assuming we can get another mortgage based on our current situation and our house being worth half of what we've paid! At this point they sent us a copy of their press release which somewhat incensed us.

I then filled in the online complaint form in essence complaining that an offset is not an offset unless you've got something to offset it against and that when THEY SOLD ME an offset 8 yrs ago they are effectively changing the product that they sold me and they're refusing to deal with us
.
The second stamp was to send some supporting documents and both my wife and I had to sign the printed out initial complaint to the ombudsman.
I would advise all to complain to danske directly and get the ball rolling with the ombudsman as you can't involve the ombudsman until you've complained formally to the bank.


Oh, and by the way, I offered to go into mediation but danske refused.

No, I meant what will the cessation of your offset cost you ? For me its about 10k. For many on here its 100k plus.

Jimpopo

dolallyoh wrote: »

No, I meant what will the cessation of your offset cost you ? For me its about 10k. For many on here its 100k plus.

Sorry, wrong end of the stick!
All told, it'll probably mean that we don't save €40,000 by now going to a straight forward variable rate repayment mortgage. And apparently that's not a change in our terms and conditions!

dolallyoh

Yep - amazing that it hasn't been reported on much.

I wonder what T&C tracker customers have and whether the bank can also ditch them too.

caleb21

Danske sell 680 distressed mortgages to Deutsche bank sorry I can't post a link as I am a new user it's on the bloomberg website

josip

caleb21 wrote: »

Danske sell 680 distressed mortgages to Deutsche bank sorry I can't post a link as I am a new user it's on the bloomberg website

http://www.bloomberg.com/news/2014-05-29/deutsche-bank-said-to-buy-680-irish-homes-from-danske.html

clint_silver

They were repossessed buy to let so owners already relinquished.

That was the first tranche. The rest will be gone by end of year. Read the bottom.

http://www.irishtimes.com/business/sectors/commercial-property/three-players-vie-for-100m-danske-bank-portfolio-1.1765814

Anatom

They can't do anything with the tracker mortgages, thankfully, apart from move them to Pepper. Ts&Cs are locked in so if you're 0.59% above ECB now, you'll stay there. The terms of the original contract transfer as is.

The Offset is different because the mortgage is dictated by the amount of money in the current account being used to off-set the mortgage rate and now that current account is gone. Nightmare for everyone - customers and the Bank - to sort out. To be fair to the Bank here in Ireland, this was not of their making. Rather, it was a dictat from Denmark and they have had to go along with it and try to exit in as best as way as possible. Unfortunately, no one was going to be happy with it.

I'll really miss the eBanking though.

dolallyoh

Anatom wrote: »

They can't do anything with the tracker mortgages, thankfully, apart from move them to Pepper. Ts&Cs are locked in so if you're 0.59% above ECB now, you'll stay there. The terms of the original contract transfer as is.

The Offset is different because the mortgage is dictated by the amount of money in the current account being used to off-set the mortgage rate and now that current account is gone. Nightmare for everyone - customers and the Bank - to sort out. To be fair to the Bank here in Ireland, this was not of their making. Rather, it was a dictat from Denmark and they have had to go along with it and try to exit in as best as way as possible. Unfortunately, no one was going to be happy with it.

I'll really miss the eBanking though.

So how do the T&C differ, is there a statement there saying the bank guarantee not to walk away from it ? Just curious. Our contracts said nothing about an escape clause either.

makeorbrake

dolallyoh wrote: »

So how do the T&C differ, is there a statement there saying the bank guarantee not to walk away from it ? Just curious. Our contracts said nothing about an escape clause either.

The offset people will have to confirm this - but I think it's quite possible that they don't. Regrettably for them, the offset group are most likely a marginal group (do we have any figures for the number of offset account holders affected??).

If they are to deal with tracker holders in the same manner, then that's something that will be aired nationally - and will be met with outrage. I'm not a legal pro but I have read my contract - and I don't see any 'get out' clause. Furthermore, I've followed this subject closely since it was first discussed (on here and over on AAM) and there was no mention by anyone of a legitimate 'get out' clause for Danske on trackers.

If they do try this on, I think there will be greater momentum behind tracker holders in trying to combat that - than there currently is for offset a/c holders.

Notwithstanding that, if I was an offset a/c holder right now, I would pursue this to the rightful conclusion. Best of luck to any offset a/c holders reading - be sure to stay the course and pursue this to the very end (that's certainly what I would do - and what I would do if they tried this on with trackers...I just don't think they will try it on with trackers).

dolallyoh

I reckon they are testing the ombudsman, if they get away with it for offsetters, and the contracts are similar, then they will go for trackers.

We shall wage the battle to the end for sure.

makeorbrake

dolallyoh wrote: »

I reckon they are testing the ombudsman, if they get away with it for offsetters, and the contracts are similar, then they will go for trackers.

**** the regulator! If that happens, then we see it through to the conclusion.


If we had any faith in the regulator, then if there were X number of similar complaints that were ultimately successful, they would have a mechanism to apply this across the board to all those affected (regardless of whether they had actually submitted an individual complaint or not). If things were 'equitable', then there simply shouldn't be a need for this.

positron

dolallyoh wrote: »

...and the contracts are similar, then they will go for trackers.

We shall wage the battle to the end for sure.

I am on tracker, and I remember reading something about loan value vs property value and reevaluation of rates or whatever based on the ratio. And if there is a clause there to help they, I fully expect them make full advantage of it in next few months, which is probably what is the main role of Pepper (which seems to be their specialty - some sort of sub-prime wheeler dealer shady stuff). Also now that Danske has no name to protect in Ireland, I don't think they would give a seconds thought before doing any of this.

makeorbrake

positron wrote: »

I am on tracker, and I remember reading something about loan value vs property value and reevaluation of rates or whatever based on the ratio. And if there is a clause there to help they, I fully expect them make full advantage of it in next few months

They can - but it's going to come at some expense. They'll have to commission valuations of properties they are going to target for this measure. Will those valuations be street side valuations - and will they be acceptable if they are? If they need access to the property to complete the valuation, does the owner have the right to prevent access?
Also, is it clearcut - i.e. if they satisifed themselves that Loan to Value was correct and proper at the time of drawdown, does the wording give them an 'out' to review LTV? Don't have loan agreement in front of me - so can't check.

clint_silver

Anatom wrote: »

They can't do anything with the tracker mortgages, thankfully, apart from move them to Pepper. Ts&Cs are locked in so if you're 0.59% above ECB now, you'll stay there. The terms of the original contract transfer as is.

The Offset is different because the mortgage is dictated by the amount of money in the current account being used to off-set the mortgage rate and now that current account is gone. Nightmare for everyone - customers and the Bank - to sort out. To be fair to the Bank here in Ireland, this was not of their making. Rather, it was a dictat from Denmark and they have had to go along with it and try to exit in as best as way as possible. Unfortunately, no one was going to be happy with it.

I'll really miss the eBanking though.

thing is, Pepper is only looking after the queries on the mortgages, danske still own them. At least til end of year when you can take your pick of the hovering vultures who will pick the bones out of it with the highest bid. Im kind of hoping for deutche for some reason in whats most likely a stupid hope that cos theyre really big theyll just let them sit away in the background and wont touch the interest rates. If its one of the american capital thingys, its more of an unknown.

Agreed on the ebanking, loved that app. Ive got boi, aib and now tsb apps. ebanking my favorite. have to say my early dealings with tsb have not been encouraging. theres a cost to free banking. Im going to call stupidity is the cost here.

Jimpopo

Does anyone out there know how financial institutions calculate what a mortgage is worth, i.e how much Danske will sell our debt for? Is Is it done on a percentage of the outstanding loan or is it done on a nod and a wink?

clint_silver

Jimpopo wrote: »

Does anyone out there know how financial institutions calculate what a mortgage is worth, i.e how much Danske will sell our debt for? Is Is it done on a percentage of the outstanding loan or is it done on a nod and a wink?

They invite others to tender for the loan book. I wouldn't say they'll take any highest bidder but you can be sure if anyone gets close to a figure they have in mind they'll take it. I'd imagine somewhere around 70%. They'll take the hit to get out. And they do want out.
There's 5000 mortgages. Let's say average is 200k do the math.

Fred Swanson

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