Help please! Bank pays mortgage money into wrong account then expects me to pay!

beaniebabe

Bank pays mortgage money into wrong account then expects me to pay!
Any help on this matter would be appreciated. Here goes!

I had been 2 months in arears with my mortgage and managed to repay the arears less £150 at the begining of March.

I made a 3 months repayment plan with the bank to cover the £150 shortfall.
I later received a letter informing me that I was in arears by an additional £900!

I questioned this and informed them I had paid the £900 to cover the arrears. The representative stated that there was no record the bank had received the £900 so I faxed a copy of by bank statement to the bank which confirmed they had received the payment.

In addition to this I made a complaint to the bank as the representatives attitude towards me was totally rude and patronising. He even refused to discuss my account with me and stated that he could not be bothered listening to my views any longer!

The first statement I faxed to the bank was lost by them. I needed to send another which they received on Friday.

I have today received a letter from the bank giving an apology and stating that the £900 was paid into the wrong account which was their fault. However they requested I contact them with a view to repaying the £900.

To make things worse I have changed my bank account as I have recently joined Payplan. The £900 was apparently credited into my old current account and I have discovered today that it has been offset against my personal loan.

As far as I can see this error was not my problem. I repaid £900 by debit card over the phone with a view to clearing my arrears.

I have presented proof to the bank that the £900 was debited from my account and they have lost this personal information on one occasion.

I also agreed a repayment arrangement for the additional £150 and have adhered to it.

It is in my opinion that it was the banks responsibility to pay the £900 into the correct account. I therefore would like any advice on who may be responsible and what rights I have in respect of repaying the amount. I am not in a position to repay much each month and feel totally frustrated by the whole thing.:mad:
Apologies if I have posted this on the wrong thread.

LoopyPrune

If they have taken the £900 from your old account to pay your personal loan its sounds like your in a mess and they are within their rights to take any money held by them to cover any outstanding debts. You need to start talking to somebody who can help like a debt counsellor or something.

Banks dont do anything illegal period. They may have alot of small print that people never read until its too late and the biggest reason why you never put all you money into one basket. Take your credit card, mortgage, bank account, personal loans out with other lenders that way they cant just raid your account looking to make up any missed payments.

beaniebabe

LoopyPrune wrote: »

If they have taken the £900 from your old account to pay your personal loan its sounds like your in a mess and they are within their rights to take any money held by them to cover any outstanding debts. You need to start talking to somebody who can help like a debt counsellor or something.

Banks dont do anything illegal period. They may have alot of small print that people never read until its too late and the biggest reason why you never put all you money into one basket. Take your credit card, mortgage, bank account, personal loans out with other lenders that way they cant just raid your account looking to make up any missed payments.

Thanks for your advice. You are right about the bank having the right to take the money out for my personal loan. However my motgage is with a separate bank and I have given proof that I paid the £900.

The bank where my mortgage is have admitted to paying the £900 into a different account (possibly someone elses account) and have stated that because of this they credited a refund into my old C/A.

When the refund was made into my old C/A the bank (different bank to my mortgage) decided to use it towards my personal loan (As I have just been put on a DMP). I understand this is something they can do.

However the bank that my mortgage is with is stating I pay the £900 back. I feel that the mistake was the banks error and I gave proof that I repaid the money. It was their fault that the money was lost not mine. Should they stand to this?
Sorry if this is a bit confusing . I appreciate your advice.

CFC

I am afraid I don't see how they will help you, although you have certainly been unlucky. They will see that they have recredited your c/a with the £900 and now they want it back. The fact that your c/a bank took the money for something else is not the mortgage bank's responsibility.

beaniebabe

Thanks CFC. If I have to repay the money then thats just life! However do you think the bank where I have my mortgage will accept a payment arrangement. I am not in a position to repay much at the moment?! and I feel they do have to accept some responsibility as they lost the money in the first place.

Thanks for your useful advice.;)

Sooler

Your mortgage bank had your £900 in its possession, by returning it to your old current acount they accepted that it would be available to the current acount bank to take it as offset againt any outstanding loans you may have with the current account bank.

Your old bank took the £900 paid in by the mortgage bank as payment towards a loan.

You no longer have the £900 available to pay to the mortgage bank because they chose to pay it into your old current acount rather than use it for what you gave it to them for. I'm sure your mortgage bank would like you pay them another £900, but what's the point - they are stupid.

You've already paid them £900 for the specific purpose of paying off arears on the mortgage, they chose to pay that money into your old current account instead, they knew that this money would then be available to the current bank to take.

How do you know the mortgage bank won't do the same stupid thing again?

Complain to the mortgage bank, they are stupid and you can't trust them with money. I'd say they should accept a payment plan on the £900 over at least 12 months.