6 month momenterium break on mortgage, 1st break didnt happen

Hi

I got a 6 month break agreement on my mortgage in February. The payments were to be held from March onwards. I checked my on line banking Monday & the payment had gone out of my bank. I called up UB and spoke with the guy who agreed my mortgage break. He said UB had held all momenteriums for the month of March. I told him I was not notified of this. He checked into it and called me back. He agreed UB had not notified their customers that this was happening and that they should have.

My problem is this payment has put me seriously into the red on my bank. Ive now gone up over my over draft. I had not budgeted for this at all. Im in the horrors over this. Any direct debits that are occuring around now will bounce because theres no money in my account until next week.

The rep from UB apologied and said there was nothing he could do. What am I going to do?

shootingstar said:

The rep from UB apologied and said there was nothing he could do. What am I going to do?

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Complain and complain again.

Have you anything in writing? If so, ask for a meeting - preferably face-to-face if you can - with someone senior and bring copies of any documentation. As far as you're concerned, you'd made an agreement and they reneged. Ask them to refund the payment and any associated costs to you (unauthorised overdraft charge, for example), and to abide by their side of the agreement. You're in more difficult territory if you don't have anything in writing, but just make sure you write as accurate an account of the terms of agreement as you can, with dates and names if you have them.

If they don't agree to change it, tell them you want it treated as a formal complaint and dealt with urgently because of the financial difficulty it's putting you in.

If they don't give you the response you want, take it to the financial regulator - and make sure you outline the full consequences to you of their action. If your usual bank isn't UB, call them and explain and see if you can get additional overdraft facilities temporarily so direct debits will be honoured - try and keep it off the ICB if you can.

Thanks for your advise. I dont have anything in writing from them. I filled out an application form which was 1 page & I can remember it being a very simple form to fill in. just name, address, why your applying for such etc. didnt tick any terms & conditions boxes AFAIK. When it was all approved he rang me and said the break is going through immediately so you wont be paying the March payment onwards for 6 months. Oh and they didnt charge me a penalty for breaking a fixed term. Im very appreciative of that and what they have done for me but it doesn't help that my account is now a few hundred OVER my over draft....

Ill put everything in writing today and drop it in personally to him. to be fair the guy im dealing with is lovely so I dont want to start ranting at him but I could do with swinging at someone, it'll get me nowhere but it'll help my temper

As dreamerb mentioned above, contact your bank today, explain what happened and look for an extension on your overdraft. Regardless of how you subsequently get on with Ulster Bank, if you do this first, at least it will stop any penalty charges you're being hit with at the moment.

Its strange because I took your advise and just as I was about to lift my phone my bank (AIB) called me. I have a good relationship with my account manager. She rang to advise me that I had gone over my overdraft. I explained everything to her.

She advised me of the following :
She can return the payment to UB informing them "payment not due". I queried this in asking that surely that will affect my credit rating etc. She assured me it would not. If the payment was returned saying "refer to drawer" or "non funds/something like that anyway" then yes that would affect things.

Just wanted to give update on what was happening. Im still worried though. I dont think this is over. Bet if i do an ICB credit check on myself in 2 months time it'll show up as a missed payment

That is a very good service from aib. It might be the lesser of two evils, bouncing the UB payment. If they have genuinely agreed a payment holiday, then they should not register you with the ICB. If they do , you can have it removed.

Brendan

Brendan said:

That is a very good service from aib. It might be the lesser of two evils, bouncing the UB payment. If they have genuinely agreed a payment holiday, then they should not register you with the ICB. If they do , you can have it removed.

Brendan

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Do you know how difficult / easy it is to have it removed (if they do log it on my ICB)? Just obviously worried about the whole thing..

Just wanted to give update - UB wrote to me last week and they agreed to back date the payments to March. Im happy enough with it all. Thanks for the advise all...