Bank Changes Interest Rate without Notifying

bizarredeal on 27/04/2018 - 11:57
Last edited 27/04/2018 - 11:57

Hey guys,

Just wanted to share a recent experience with my home loan account.

I noted an increase in my home loan interest rate by 0.35%.

Upon discussing this with the bank they noted that have investigated and concluded that my house is an investment property and not owner occupied. So they decided to increase the rate to IP rate.
I asked for the investigation report to which they said its a business sensitive document and cant be revealed.
They also told me that they sent me a letter via post about about a month ago and the change is set to take place and that I had not replied.
Over the phone when I asked what the letter entailed - he didn't have a clue and said it will take 2 business days to email me. I said I am happy to prove I what I need to as I have not done anything wrong while you guys done it all wrong.

Wrote a long complaint letter just short of calling them cheaters to which they immediately responded with calls. I asked them what the contents of the letter was and he basically read it out. All they wanted was my DL and a bill to make sure I am still living there. Too easy mate! here you go! in one email it was done.

Got back to a lower rate than I was on which is what I should have been on.

Please check you are not in the same position and make you are on top of your loans and accounts.

Not sure how much I can disclose on public forums.

All the best.

Financial Banking

Comments

  • GG57 on 27/04/2018 - 12:25

    Did you ever get the letter? Is your address at the bank accurate?

    • bizarredeal on 27/04/2018 - 13:11

      No I didn't receive the letter. I have only 1 address. I did eventually receive a soft copy mailed to. Very generic letter. All they needed was DL and a bill. Which I have in excess to show for.

  • reno on 27/04/2018 - 12:39
    +1

    also is it true that it is an IP and not OO?

    • bizarredeal on 27/04/2018 - 13:11

      I live in this address. I have one place to live.

      • John Kimble on 27/04/2018 - 13:30
        +4

        But my love is all I have to give
        Without you I don't think I could live
        I wish I could give the world to you
        But love is all I have to give

  • pasey25 on 27/04/2018 - 12:45

    Same thing happened to me.

    They mailed the house that I live in claiming it was an investment property. I said if I’m living in it (as I have been for 9 years), and you mailed me here, why would you think that it was an investment?

    They couldn’t answer

    But

    I had the burden of proof to prove I did indeed live there. Not the other way around.

    Lunacy

    • dcep on 27/04/2018 - 12:47

      what bank

    • bizarredeal on 27/04/2018 - 13:12
      +1

      Banks must be doing the rounds to try and catch people off guard.

      • dcep on 27/04/2018 - 13:18

        wonder if i should double check on calculating HL interest deducted every month

        • bizarredeal on 27/04/2018 - 13:22

          It's not the most simplest calculation as it changes daily and has the compound effect. But if you verify that they do indeed charge the correct interest rate they say they have given you. It is worth to make sure they are not stealing without you being aware.

  • dcep on 27/04/2018 - 12:47

    what bank ?

    • bizarredeal on 27/04/2018 - 13:14

      Not sure if it matters which bank - just a information thread to making sure banks are not coming up with unfair and different means to make money off people.
      Had I not caught in time it would have been ticking over in high interest rate as they are not bothered to follow up on no response from unsent letters.

      • tomsco on 27/04/2018 - 13:22

        It would be interesting if you could at least confirm priavately with pasey to confirm if it’s the same bank.

  • battler on 27/04/2018 - 12:49
    +3

    just start throwing the words "royal commission" around

  • MeesusEff on 27/04/2018 - 13:23

    Hmm.. I did get a letter few months about I bought my house last April saying IR were going up by 0.45%, which really annoyed me because I chose that bank based on the initial rate. Better dig it up to see the conditions, or did everyone get an increase around June-Sept last year?

    • John Kimble on 27/04/2018 - 13:31

      The point here is the OP is OO…

      • MeesusEff on 27/04/2018 - 13:47
        +1

        ya, I'm on OO too, so wondering if the bank just decided to up my IR because they assume I'm IP.

        • bizarredeal on 27/04/2018 - 13:51
          +1

          Banks have to advertise the current variable interest rate. There is information they need to release should you ask. Get in touch with them.

        • MeesusEff on 27/04/2018 - 13:54

          @bizarredeal: I'll have to find where I put that letter since its so long ago…, but thanks for raising my awareness :) ! Your rate percentage went up almost the same as mine did so they might have been overcharging me all this time…

  • Cheap Charlie on 27/04/2018 - 14:08

    Not sure how much I can disclose on public forums.

    Obviously none of your personal details, however I would be telling any one that listens.
    Crypto currency lending once its mainstream and regulated will bend these big banks over a barrel.

  • kolorijo on 27/04/2018 - 15:07

    Time to refinance my mortgage.

  • Quantumcat on 28/04/2018 - 10:34

    Did you get a refund of the extra interest they charged you?

    • bizarredeal on 28/04/2018 - 13:41
      +1

      Yes. They have told me that will back date and reverse extra charges. The change apparently takes 5 to 10 business days. They are yet to do it.

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