AIB didn't take mortgage payment and now say I am in arrears

[davidcastle87]

Hi there,

Looking for some advice or if anyone has heard of a similar issue.

We've had a home mortgage with AIB for the last few years, and as we had went into a variable rate, I sent a rate change form to fix the mortgage in late May. We got a letter back a couple of days later confirming the rate change, effective from June 2nd (even though we requested from the 2nd of July for the new rate to be effective).

I assumed the old, higher mortgage payment would come out on June 2nd, but the date came and no payment was taken, despite there being far more funds available than required (we never let the account go down below a certain level). I rang AIB about two weeks later asking why the payment was never taken, and was told the date of June 2nd as the new effective date was a typo, and the payments will start coming out from July 2nd instead (which it did this month).

The problem however, is I've got two letters since then from AIB saying we are in mortgage arrears from a missed payment on June 2nd. I sent a letter back to them straight away on receipt of the first one outlining the situation, explaining what I was told over the phone and seeking clarification (I never got a reply). I rang them today on receipt of another arrears letter and they've said they have opened an investigation to find out what is happening.

I guess I have to wait for the outcome of that investigation however we are seriously stressed out over this as don't want any negative impact to our credit rating. We done nothing wrong here and none of this would have happened if we didn't request the rate change.

Has anyone heard of any similar issues? I know they are likely flooded with mortgage rate change forms and mistakes happen, but when you are getting letters talking about negative credit ratings, repossessions unless you engage etc., it causes a lot of stress. I've asked for a complaint to be opened as well but I'm wondering at this stage is it getting into solicitor territory?

Any advice appreciated

 

[peemac]

Pay any arrears immediately over the phone so that the account is regularised.

That corrects the immediate situation.

Then write to them asking for them to confirm in writing that no negative report has been made to the Central Credit Register.

Once you have that, get a report from the CCR to confirm there is no negative report.


As an aside, you can make a repayment at any point in the month. Arrears only occur when the new month starts.

You can also choose your repayment date for any date up to 28th of the month. (Ensures Feb payment always goes through)

 

[Dazzler123]

As peemac above says, make the payment manually now. Your credit record should not be adversely affected as you have a months grace for scenarios like this. But do make sure you check it and if it is affected, make a complaint and get some free money.

 

[davidcastle87]

Thanks for the advice folks. Unfortunately the alleged missed payment was June 2nd so already into July now. When I spoke to AIB initially on June 14th (before there was any mention of an arrears issue) I asked could I make the payment they failed to take manually but was told no as they had already recalculated the mortgage based on them taking no payment in June, and assured me there would be no negative impact on credit rating resulting from this error. I thought the whole thing was strange but that’s what I was told, hence why I made no payment on their own explanation and advice.

It’s when I got the second arrears letter yesterday that I started getting worried as the person I was previously talking to must have been incorrect (or the arrears team are incorrect). The whole thing seems like some kind of administrative mess created by AIB. Will see what the investigation on AIB’s side shows up and what they say, but if there is any kind of negative impact to my credit rating due to their mess up it will be straight to the solicitor to seek some form of corrective action and redress.

I’m sure it will work itself out but it’s just very frustrating. I can’t understand how the bank could fail to take a payment (from the account they’ve contractually agreed to take payments from), and then turn around and say hey, you are in arrears. The only answer can be a process/administrative error.

 

[davidcastle87]

Just to close this out - AIB completed their investigation and admitted fault. Offered a very small gratuity to apologise but more importantly letter on the way out confirming it was their error and credit rating/reporting has been made right.