Bad credit rating stopping mortgage application

New member here looking for some advise, apologies if there is a more suitable form for this post.

So..my story, Ill try keep to the point.

* October 2011 my loan was worth in the region of 14k with AIB.
* I decided to emigrate for a job opportunity. Although this was a good job it was in eastern Europe and I would take a huge cut in salary (it worked out because I came back with experience and was able to double the salary I was on before I left)
* I stayed in eastern Europe for a year.
* Before I left Ireland I agreed with the bank that due to the cut in salary I would reschedule my loan and pay half repayments every month (interest only), so I would pay in the region of €150 instead of €300.
* All the paper work was signed and sent to the bank.
* I left the country and received word from the bank that the paper work was somehow damaged/got damp in the post and could I sign again, I did and posted it back to them.
* The bank contacted me and said that the reschedule was approved.
* I started to transfer the €150 into my account on the understanding that everything was in order.
* A couple of months later the bank contacted me to say a mistake was made on their side and that although approved the loan was not reschedule and could I send them my passport and a bill, I didn't realise the importance of this step until recently.
* During these 4-5 months the bank were still trying to take the full payment of €300 from my account, these failed as I had been transferring €150 as agreed.
* I rang the bank and asked them to fix this, they said it was an issue with their side and that my credit rating would not be effected.
* A few months later my current account was closed by the bank and I received a call from the Bad Debt department. They wanted a payslip from my new job to show my salary. I sent this to them and have not heard from the banks bad debt dept since.
* I have been back in Ireland two and a half year, I have continued to pay €150 every month during that time.
* I am now in a position to pay off the loan in full and apply for a mortgage with a deposit we have saved up.
* I checked my ICB credit report and for my AIB loan it clearly shows the account is 9+ months in arrears.

I recently went to my bank and had a meeting with the manager. Together we went through all the correspondents and documentation from the initial loan reschedule request till now. He was able to tell me that due to the fact they the bank did not receive a copy of my passport, my loan reschedule although approved was never finalized. At no time did the bank ever contact me to tell me the importance of this document or that they had in fact not received it. My current account was closed with the bank and the loan account went into bad debt, all without my knowledge at the time and without any communication from the bank.
My bank manager when asked didn't really give me any answer on why I didn't get any warning that my current account would close if the bank didn't receive my passport photo. He stated that taking away the problem with the loan that I would have no problem getting approval for the mortgage I want and that he would contact the home loans department on my behalf, explain the situation and see if in principle they would look favourably on me as a customer. It turns out they are not going to look on me favourably meaning I will not get a mortgage.

So I feel hard done by in this situation, I don't know where to go from here. Can someone please tell me what my next course of action should be, my wife isn't going to be too happy about this as the bank manager was very confident that all of this wouldn't be a problem.

Few things.

Go online and apply for copy of your Irish Credit Bureau (ICB) report.

Put in a Subject Access Request (SAR) to AIB HQ.Costs e6.50.That SAR is a full printout of all written/call records etc on your account.They in Law must supply it.
It will take some time to get that back.
On receipt have a good look at it , with any luck on your side it will show somewhere your claim that {it wouldn,t affect your credit rating}.
At worst it will show good cause by you.

If it shows you were clearly told {not affect your credit rating} AIB have to resolve that.
If it clearly shows good honest workings by you re-appeal.

Gerry Canning said:

Few things.

Go online and apply for copy of your Irish Credit Bureau (ICB) report.

Put in a Subject Access Request (SAR) to AIB HQ.Costs e6.50.That SAR is a full printout of all written/call records etc on your account.They in Law must supply it.
It will take some time to get that back.
On receipt have a good look at it , with any luck on your side it will show somewhere your claim that {it wouldn,t affect your credit rating}.
At worst it will show good cause by you.

If it shows you were clearly told {not affect your credit rating} AIB have to resolve that.
If it clearly shows good honest workings by you re-appeal.

Click to expand...

Hi Gerry,

Thanks a million for your repose, that's exactly what I need.
I got a copy of my ICB last month, everything is healthy except for this AIB loan (i did exactly the same thing with the credit union and had no problems.)
I will request the SAR from AIB HQ first thing tomorrow, when you say "full printout of all written/call records etc on your account", are the calls recorded and or printed out or is it just times and dates? It was on a call that I was told my credit rating would not be affected.

Regards.

If it was on a call from AIB or indeed to AIB they should supply that transcript in the SAR.
If you get that in writing use it to sort your mortgage.

I would then sue them!(if only for their arrogance).

Gerry, thank you so much. Hopefully there is a transcript of this, it was on more than one occasion on the phone that they told me my credit rating would not be affected.

The repetition of saying and resaying credit rating not to be affected irks me.

They do need suing (once you get mortgage sorted)