GE Flexible Loan, not so flexible?

[Humpback]

I'm wondering if anyone else has discovered issues of flexibility, or lack of it, with regards to the GE Money loans.

I have a loan with them where earlier this month I tried to pay off about 15% in a lump sum, and reduce my monthly repayments - all within the T's & C's of the loan.

However the cheque was returned to me and this morning I've discovered that their IT system won't allow such flexible payments at all. They've no idea when the systems will be fixed, and I was told this morning that this flexibility wasn't actually working since the loans were launched (September 2005).

Has anyone else found this problem?

What are my rights in this case? Given that I tried to pay off this money according to my T's & C's at the beginning of this month, should I still see the benefit of this in my balance remaining, and be entitled to the reduced monthly repayments from here on in for the life of the loan, even though their system can't process it?

Can I insist, whenever their systems are working, if I resubmit the cheque that the impact/benefit of it be backdated to the beginning of this month?

Where would the Financial Ombudsman fit in in this situation?

 

[CCOVICH]

It's not uncommon for banks et. al to launch products without testing systems to ensure that ts and cs that exist now and in the future can be met.

Not your problem.

I'm sure that the Financial Regulator would be interested to hear about this case.

But you should first make an official complaint to GE.

You should be entitled to see the benefit of your lodgement from the date they originally received the cheque.

 

[TarfHead]

It's not uncommon for banks et. al to launch products without testing systems to ensure that ts and cs that exist now and in the future can be met.

Wow - what a generalisation. Any chance you can back up that assertion with a few examples ?

You should be entitled to see the benefit of your lodgement from the date they originally received the cheque.

Don't think so. There are many other postings on AAM about the time it takes to clear cheques. Rightly or wrongly, you should be 'entitled to see the benefit of your lodgement from the date' the cheque cleared.

 

[CCOVICH]

Wow - what a generalisation. Any chance you can back up that assertion with a few examples ?

Not particularly-tell me I'm wrong if you wish, but having worked in the industry for quite a few years I am happy that what I have said holds true. I am not prepared to reveal specific confidential information here on AAM. Take it or leave it.

Don't think so. There are many other postings on AAM about the time it takes to clear cheques. Rightly or wrongly, you should be 'entitled to see the benefit of your lodgement from the date' the cheque cleared.

Fine-I should have said cleared instead of received.

However, in the normal course of business, a cheque should be lodged and clear within 5-7 working days of receipt-it would not be acceptable for GE to receive the money and sit on it for 6 months.

 

[Towger]

Wow - what a generalisation. Any chance you can back up that assertion with a few examples ?

I had that problem with my pension (Eaglestar) company about 10 years ago. There computer systems could not handle an extra one off payment on a new policy, so they had to get up an additional policy. Needless to say I got a letter from them stating there was and will be no additional cost to me. It took two letters and 6 months to get that letter

Then there is the First Active's new computer system which can handle their existing mortage types. Lots of into on that saga on this site.

Towger.