ME BANK Misled Me by Offering Rate and Rescinding after Accepting

Lconsumervigilante on 08/01/2019 - 14:53
Last edited 08/01/2019 - 17:42 by 1 other user

I contacted ME BANK to ask them to match a lower rate of competitor for my investment mortgages.

They offered me a rate that was less than competitive but matched their new lending rate. I took advice, calculated my budget, and made plans for the savings that would ensue. I telephoned them and accepted the rate and they confirmed the products. Two weeks later they contacted me and rescinded the rate. I told them that if they had made a mistake they needed to honour that mistake. They disagreed.

I've taken the matter to OFCA and await a resolution. It is disappointing that ME BANK is turning out to be as disreputable as any of the other Australian banks, into which there is now a Royal Commission. Total disdain for the customer.

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Comments

  • sghetti on 08/01/2019 - 15:06
    +3

    Was anything signed in terms of a final contract for the loan stating this rate? If not, I'm not sure there is anything you can do. While I agree that it's bad on their part for initially accepting to match the rate, if there was nothing final about this offer then there is no legal binding to it, I'm not sure anyone can force their hand to process the loan at the rate you wanted.

    Perhaps look around for other lenders that match your requirements for LVR etc.?

  • whooah1979 on 08/01/2019 - 15:11
    +1

    Do you have a written contract?

  • tomsco on 08/01/2019 - 15:28
    -2

    But where's the bargain?

  • vinni9284 on 08/01/2019 - 15:42

    Did they accept the new rate in writing?
    If so then you may use this and opt to another bank to match.

  • HighAndDry on 08/01/2019 - 15:59
    +4

    Nothing in writing, and no loss for you. What exactly are you hoping for as a resolution?

    • sghetti on 08/01/2019 - 16:32

      OP's username checks out

      • dcep on 08/01/2019 - 17:34
        +4

        consumervigilante
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  • Almost Banned on 08/01/2019 - 17:34
    -6

    Geez some people on this site are weak as p*ss. I suspect they wouldn't be so sanguine if they had been the ones lied to.
    You have a contract with ME. You are entitled to either reject their repudiation and affirm the contract, or accept their repudiation and sue for damages. In this case it is clear that affirming the contract is a better option.
    Good luck with your complaint to the FOS (I assume that is what you meant).

    • Baysew on 08/01/2019 - 17:41
      +1

      From 1 November 2018, all new financial services complaints are dealt with by AFCA - Australian Financial Complaints Authority

    • HighAndDry on 08/01/2019 - 17:53
      +2

      You have a contract with ME.

      Lol no. OP had a conversation with ME Bank. Nothing more.

    • whooah1979 on 08/01/2019 - 20:01

      You have a contract with ME.

      Show us the paperwork!

    • bazza1980 on 08/01/2019 - 21:03

      You have a contract with ME

      Eh no you don't, are you saying you can now apply and enter into a mortgage over the phone? Must be these things called "low doc home loans" but in this case
      "No Doc home loans" lol

      sue for damages

      What damages? What loss has the OP suffered?

  • [Deactivated] on 08/01/2019 - 18:50

    made plans for the savings that would ensue

    Counting chickens before they're hatched?

    No company has any obligation to provide you with anything unless you have a signed (and countersigned) contract. If you wait things change and they can change their mind any time they like. It's not like in 10 years when interest rates are 11% you can go to a company and say they offered you 3.9% in 2019 so they have to honour it.

  • bazza1980 on 08/01/2019 - 21:00

    I telephoned them and accepted the rate and they confirmed the products

    But you were never formally offered the mortgage as there were no loan documents signed. They gave you an indicative rate over the phone. Nothing is final until the paperwork is signed. You probably didn't recall the part of the conversation where they give you a disclaimer that anything discussed over the phone doesn't constitute formal advice and nothing is final until formal paperwork is signed etc etc.

    Pretty sure you can't apply and enter into a mortgage over the phone.

  • whooah1979 on 08/01/2019 - 23:11

    https://www.legalaid.vic.gov.au/find-legal-answers/consumer-…

    However, the law says that some contracts must be in writing, including:

    agreements about buying, selling or mortgaging land and houses
    consumer finance or credit agreements
    agreements to buy a car from a licensed motor car trader
    door-to-door sales agreements
    agreements for things to be done more than one year from the date of the agreement being made.

    Any agreement that is important to you should be put in writing.

  • Typical16-bitEnjoyer on 09/01/2019 - 08:56

    Without knowing all the facts, even if OP did have evidence here, what do they hope to achieve? There is no loss.

    Take your business elsewhere.

  • Sofie519 on 10/01/2019 - 23:07

    For the purpose of perspective, you should understand that, as a borrower you are asking that someone lend you money. The lender can, at ANY stage refuse, decline, cancel the decision to lend or even if the money has been transfered, as 1 mortgagee on title, they can recall the loan without reason, by just notifying you as per notice terms of contract.

    As a business with a profit motive they are unlikely to decline or cancel the lending without cause.

    So I would suggest for you to just move on and find another lender. Provided you are eligible, there are many options out there. Just speak with a broker.

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