Bank paid my mortgage - Even though I was overdrawn

S

subzero

Registered User
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9
Hi,
I would like some advice regarding my issue with my Mortgage.

I have never missed a payment, but after months of hitting my overdraft and missing other loans. It was only time before my Mortgage defaulted.

I had -100 Euro in my bank account with an overdraft of -1000. I knew my Mortgage of 1300 was going to default. And maybe it was better it did as Permanent did not want to do anything for me, because I was still paying.

But it seems that my Mortgage came out and pushed my overdraft with other loans to -2200.

I asked my bank why they went over my overdraft as I can't afford it. They said that they honor the direct debit up to the amount I am paid. I said so you want to leave me with no money once my Direct debits are paid. They said the only way was to cancel the direct debit with them and my my mortgage provider.

I thought it was easy to default...I guess not.

How can I get out of this without cancelling my direct debits....Can my bank really do this without my approval.
 
If you bank with same bank as your mortgage, then even cancelling the DD to the branch and the mortgage company, in my experience has little effect.
If that is their policy, then unless you do something, this will continue to happen so you will have to do make a decision to either pay it or open an account elsewhere.
We have literally had to open a new bank account and transfer every thing to it-all DD's, SO's, payments, online visa debit transactions etc etc.
Has been a serious pain in the..but now they CANT take it. I dont trust them an inch. They will leave you short and if they did it once they will do it again.
However, I dont understand why they wont do anything to help you.
Have you submitted a SFS (standard financial statement) either in writing or by phone? If you did, then only reason they wont engage is when it shows you can afford to pay your mortgage.
If you are sure you cant afford to pay, are your figures ok? Mabs website has lots of info on help with budgeting-I thought I knew how to budget but realised that I was calculating stuff wrong and not allowing enough for items that are only bought at certain times-firewood etc.
Do you have other non secured debts? Can you try and deal this other debt in meantime? I paid more to my credit union than to my mortgage company for over a year thinking it would be short term and kick myself now that I didnt prioritise my mortgage during that time.
Maybe completing the form on here would help the others see where the problem lies. If bank wont engage with you and you are sure that they should based on your income/outgoing level, then you can and should appeal it.
Good luck, its not easy I know :(
 
Banks do not like people to default on their mortgages. As soon as this happens they need to start making impairment provissions on the loan which directly affects their bottom line profitability. A delinquant overdraft is a better proposition for THEM.
You have to understand one thing about banks. A bank will always act in its own interests first. The clue is in your own posting above "I have never missed a payment". Once you have missed payments then the impairment process must start.
 
People read too much into this, your D/D was paid because you have an internal shadow limit which is not visible to you and when the D/D was paid it fell inside this additional shadow or cushion but outside your agreed facility.

Banks calculate a shadow limit on the basis of the account history. Almost 100% of customers should want items paid for them if they occasionally or accidentally go over their agreed o/d limit, this would be the first time I've heard a customer give out that the Bank paid the item when they should not yet have looked after their customer by paying their mortgage and of course their customers credit records.

Changing your Bank account will solve this, ensure you cancel your o/d facility in writing with your current Bank and have that acknowledged by them.
 
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