Bank took 2 mortgage payments

R

Res13

Registered User
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We recently moved house and got a trade up mortgage.

The new mortgage was issued, however last week two mortgage payments were taken by the bank – one for the old mortgage and one for the new mortgage. Our old mortgage account was supposed to be closed off before the new mortgage was issued.

This has left us with absolutely no money left in our bank account and with bills coming out and kids to feed we are under severe pressure.

I rang on Monday and queried it and was told that the account should have been closed, but wasn’t, and it was now in credit for the amount they took last week. I was advised that it would take a week to investigate, despite being told exactly what the problem was and how it needed to be fixed.

They have advised me that they will not be able to close the account until the end of this week and the money will not be refunded until the end of next week – meaning I probably wont get it until the week after next. This leaves me in serious financial trouble for the next week or two. I have had to pay the bills using my credit card – this is now at its limit so I do not have anything else to fall back on.

I do not seem to be getting anywhere with the bank despite numerous phone calls. Can they just hold onto 1000e of my money until they feel like giving it back? The money was taken on 6th July and looks like it will be gone for over 3 weeks before we get it back.

Does anyone have any advice as I just don’t know where to go from here.
 
No of course they can't! However the resolution of such errors does take time and in this instance it has resulted in you being under financial pressure. Send a registered letter immediately to the Bank specifying their mistake and the financial consequences for you of not receiving this refund immediately. Unfortunately there is little else you can do at this time to ensure you get the funds back promptly.
 
If it was me ...
I'd consider asking the bank (especially if it's the same one that landed you in this mess) to increase the credit limit on the credit card to allow me to pay essential items now.
Obviously I would clear the CC ASAP and ideally before any interest charges accrue.
Or I'd ask them for an interest free advance/loan to cover the money that has gone "missing".
Once this all gets sorted I would also put a complaint in writing to the bank asking for some sort of explanation and compensation.
If they rejected it with a final response letter then I'd take the matter to the Financial Services Ombudsman but it might not need to go that far.
 
Contact your bank and ask for a refund under the sepa rules see attached and below in red



Extract from above

SEPA Consumer (Debtor) Rights The SEPA Direct Debit Core Scheme Rules and the SEPA Regulation 260-2012 make provision for the following consumer rights (effective 01 Feb 2014):

Debtors can :
  • Use your account to pay a SEPA Direct Debit in any SEPA country
  • Instruct your bank to refuse a SEPA Direct Debit
  • Prohibit the application of any SEPA Direct Debit to your bank accounts
  • Specify Creditors who may collect SEPA Direct Debits from your bank accounts
  • Specify Creditors who may not collect SEPA Direct Debits from your bank accounts
  • Limit a SEPA Direct Debit collection to a certain amount and/or periodicity
  • Request a refund for any SEPA Direct Debit within eight weeks from the date on which the SEPA Direct Debit was debited from your account. Within the eight week period your bank must refund you on a no-questions asked basis.
  • Request a refund for any unauthorised SEPA Direct Debit after 8 weeks and within 13 months from the date the on which the SEPA Direct Debit was debited from your account
 
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