BOI Penalty Charge That Shouldn't Have Been-Help

Has anyone had this nature of problem with BoI.....we've been paying off a small loan for the last 5 years, at €105 per month. For the very first repayment they didn't inform us that the loan had even been approved then slapped on a 12.70 charge for missing the first payment. Now at the end of the period, having missed no payment throughout, the last one was due out on Jan 1st. On Dec 24th a cheque was deposited which covered the payment with a couple of hundred to spare. This cheque was showing up in the account at the end of last week days before the payment was due to be taken and yet tonight when checking the account a 12.70 charge has been applied for missing the last payment even though there was more than enough money to cover the payment in the account a week in advance.

BoI up to their tricks? What story are they likely to spin when we go to the branch tomorrow? I intend on reporting them whatever the outcome but I'd love a headsup on how to manage this tomorrow. At the moment im upset and furious after struggling on a pension to pay this monthly.

What bank was the cheque coming from? In some cases it can take 3-5 working days for cheques to be cleared. Given how Christmas fell it will probably be the reason.

I'd agree with David, probably not enough working days from 24th to 1st to enable cheque to clear.

But if the cheque wasnt cleared why would it show up in the account balance as available funds? I.e. balance=€300+ for several days, payment of €95 due out subsequently??

Hi Maison.
If you have time just go into the branch and create a rompus and try and get them to reverse the overchage.
It's probably a computer that added the charge but humans can sometimes overturn these things. Especially a manager if you can get your hands on one.

Or just set up a direct debit. You won't miss payments and you've avoid the €0.50 stamp duty on cheques.

Over five years you paid €30 in total to pay off the loan by cheque!

All you have to do is print out your bank statement to see if the lodgement of the cheque was in before the date of the loan repayment. What is that date?

- 24th was a Monday
- Was the bank closed other than on the 25th and 1st
- You were cutting it really close there with the cheque.
- I'd make a fuss in the branch
- The one charge they should refund you is the first charge. Though I find it odd that you didn't even know you'd bee give a loan?

Is the 12.70 charge on your current account or loan? And which account was cheque lodged to?