# Missed Bank Loan payment



## cazmayo (1 Apr 2009)

We have a business loan which fell behind by one payment (2 weeks overdue).  The bank withdrawal all the money in the personal account and transferred it over to the business account leaving me with 1 euro.

I was shocked how they could withdraw money without my notification.
I have a family and have been left with no money at ALL.

When I telephone the bank manager he said, well you broke a credit agreement and they can do that.

I told me I was realise that, but I was disgusted that they would leave a family with 1 euro in their account and take the money without notification.

He said my husband should have come in before he missed the payment, which I can understand, but I dont like their tactics.

I told him I would not be using my personal account to lodge wages, and would move my account down the road.  He said he would make sure it wouldnt happen again.  Forgive me but I have no confidence in that when he had just said they were perfectly within their right!!


Dont deny the money was owed, but to take it forceably and leave the account with 1 euro for one missed payment.

Im furious.  Its the Ulster Bank by the way.

Is this legal.
Caz


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## cazmayo (1 Apr 2009)

Mean to say, this loan was being paid out of a business account and not our personal account, therefore it wasnt as if it was missed from our personal account and then they came back again.  

It was missed from our business current account, so they looked across and waiting for wages to clear and cleared out the account leaving us with nothing.


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## Gus2008 (2 Apr 2009)

Sounds very dodgy. Have you checked the terms and conditions of the business loan to see if there was anything in it that would allow such a move?


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## TheShark (2 Apr 2009)

Seems like one for the Financial Ombudsman


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## bond-007 (2 Apr 2009)

Too right. Sharp practice indeed.


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## NicolaM (2 Apr 2009)

As an interim measure, can you ask for a temporary overdraft (so you have some money for food etc for the month)?

Nicola


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## baldyman27 (2 Apr 2009)

Here's someone who won't ever open an UB account having read this thread.


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## Scotsgirl (2 Apr 2009)

This happened to me years ago with Bank of Ireland.  They would take money from my savings account to cover going over the overdraft in my current account.  They did this several times, leaving me with absolutely no money in either account.  When I complained that I hadn't given them permission to do this, they said they were within their rights to do it.  I moved banks shortly after that.

Perhaps all banks do this?


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## jhegarty (2 Apr 2009)

Very sharp. 

I could understand if the loan was in default ,but for two weeks it's madness.


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## cazmayo (19 Apr 2009)

Thanks everyone.  The experience left me in tears and if you cant put your wages into your personal account and trust that they will be there when they are cleared its too bad!

I explained to the bank manager that I would not be lodging any wages from now on and then he said "dont do that, I will make sure it doesnt happen again"!!  This post will be deleted if not edited immediately he was just after defending the action saying "well you owed the money".

I think 2 weeks late, without any contact, does not justify them looking across to our personal account and clearing it out and leaving a family with 1 euro.

I have taken to cashing the wage cheque elsewhere in protest and have got advise about renegotiating our loans due to wage cut.

They are going to lose a mortgage customer, 2 business accounts and a personal account.

My husband ceased his business last year due to the recession and we agreed this loan for monies owed, however now 7 months later, he is working as a paye worker and has had 2 paycuts in 5 weeks, thus the reason for the missed payment on the business loan which we are paying 10% interest!!  When this was explained, he said "oh we will have to discuss sorting something out, which is very inconvenient for me, having to go back to the business lending dept.  I said "inconvenient for YOU!!!  in convenient for me, left with no money to do the food shopping, with 2 children and me 6 months pregnant.

I have learnt never to have all your business in the one bank (not that I want to miss further payments, but its scarey that they can just do that).

I think it is very bad treatment and I have put my complaint in writing and told them I will be checking the legalities of it.  Whether its legal or not, I think its terrible treatment.  They have our house deeds, where hardly going anywhere!

I've never heard of a bank treating a customer so bad.

The experience has only prompted me to look elsewhere and have no loyalty to any bank.  We are just another number!

Thanks for your comments.
Caz


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## Bgirl (19 Apr 2009)

Did you sign a letter of guarantee to guarantee the loan?


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## cazmayo (19 Apr 2009)

Hi Bgirl,

Yes we are personally responsible for the business loan.  We were a limited company, yet the banks ask you to sign a form to take personal responsibility if the business goes bust.  Since the business ceased we have been paying the business loan and thus meeting our personal responsibility.  The grievance I have is, that without a phone call or written communication they took money out of my current account for a loan repayment that was 2 weeks overdue and left me without any money.  

No argument we owed the money, but I think this is very aggressive tactics to be used on one missed payment of 2 weeks without notification.

For them to withdraw bank charges etc from your account they have to advise you in advance, just shocked that they would forceably take the money in that timeframe.

We have had a 600 euro reduction in monthly wages and therefore it wasnt out of choice to miss the payment.  We were actively trying to reduce our mortgage etc at the time.

Just felt humiliated and think their practice is extreme.

Regards
Caz


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## Bgirl (19 Apr 2009)

Not condoning their behaviour but you need to check that letter of guarantees small print as therein could be the reason they debited your personal account.  I am not saying you did but many people don't read a Letter of Guarantee and waive their right by signing it immediately.


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## samanthajane (19 Apr 2009)

cazmayo i am totally shocked that they have done this to you and regardless of what you did or didn't sign they never should have left you with no money what so ever. What are your family to do live of fresh air??

For This post will be deleted if not edited immediately sake it was 2 weeks late!! 2 months and loads of letters demanding payments and threats that they would take the money from your other account then yes i could understand them doing this if they thought they would never get paid but 2 weeks late it's a total disgrace.

I used to have a business and personal account with ulster years ago and after 3 months i had enough and moved. At the time we had a fair amount of money going in the account ( and out again ) but on occasions we would be short the wages because we were waiting for cheques to clear. We asked for a €1500 overdraft to see us through and were refused point blank, even told us there was no point in filling out a form. Moved to ptsb and got an overdraft straight away. I found them much better to deal with.


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## Hybrid Boss (26 May 2009)

I'd say it was more than 2 weeks overdue & if they did transfer the money from the pesonal account! it would have only been done after a number of warnings, letters, phone calls from the bank.


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## cazmayo (28 May 2009)

Hi Hybrid Boss,

Loan is due on the 17th of month, money taken out of personal account 1st of following month.  Loan was paid up otherwise, and as I previous stated, received no notification of this extreme measure.  Bank manager said as its a business account its not under his control, but head office.

However he has arranged to put the loan on interest only for a time, once he knew of our circumstances.

Regards
Caz


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## JQ2002 (28 May 2009)

Are banks allowed apply a set off against other accounts in the bank without your permission? Is this in small print?


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## Hybrid Boss (3 Jun 2009)

JQ2002 said:


> Are banks allowed apply a set off against other accounts in the bank without your permission? Is this in small print?


 Its not set off, its "Off Set"


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## cazmayo (4 Jun 2009)

This is the feedback I received from the Financial Regulator.  Seems they can just take from another account!!  

I have made strides since in reducing loan repayments so this doesnt happen again, but I still maintain this practice was aggressive and will make sure it doesnt happen again, by paying wages into a different bank and transferring enough over to cover loan and dd's.


Thank you for your email  enquiry. 
The Financial Regulator is an  independent watchdog set up by the Government to regulate firms that provide  financial services, and help you make informed decisions about your personal  finances. 
Generally, if you have two current accounts with the  same financial institution they can be offset against each other but you should  check the terms and conditions of your business current account and any other  documentation that you may have signed, for this.  If you do not have a copy of  the terms and conditions you can ask your bank for them.
 [SIZE=+0]If you consider that you have been unfairly treated by Ulster Bank you  may make a complaint.   [/SIZE]
 [SIZE=+0]Under our Consumer Protection Code all  regulated financial services firms must have a complaints handling procedure in  place. Ulster  must write to you within 5 business days of receiving your  complaint. They must give you details of a person you can contact, and they  can't let more than 20 business days go by without letting you know how your  complaint is being dealt with. If they do not resolve your complaint within 40  business days they must:[/SIZE]
 [SIZE=+0]- let you know how long more they  expect it will take to resolve;[/SIZE]
 [SIZE=+0]- let you know of your right to refer  the matter to the Financial Services Ombudsman or Pensions Ombudsman;[/SIZE]
 [SIZE=+0]- and give you contact details of the  relevant ombudsman. [/SIZE]


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