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Leon
Leon, Solicitor
Category: Australia Law
Satisfied Customers: 43755
Experience:  BEc Dip Ed, Dip Law (SAB) MTax (UNSW)
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I'm in process of negotiating a refinance of a loan on my

Customer Question

Hi I'm in process of negotiating a refinance of a loan on my business property .
Ive provided well in advance of the end date of current loan term all information required ,I've been in phone and email contact constantly . I'm a high income earner and have assets and have never missed my payments i'm highly geared etc, so an ideal customer i would have thought .
Ive been with this bank 8 years
During the recent discussions expressed concern to the current manager that i wanted to ensure avoiding what had previously occurred when the loan term had ended without notification making my cheque account $250k in debt and taking all available funds from my account.
This was very distressing at the time and while the bank corrected the error and repaid the additional interest paid i found the process very dissatisfactory and keen to avoid again . This morning checking my account i see that the monthly payments have increased without any notification ?
The bank manager has advised that they would extent the loan term until they had time to prepare a new loan offer .
Bearing in mind i have provided everything they need we just had to agree on new interest and type of loan available to me once i receive documents.
At this point i'm really angry this is occurring again
Can you what are my rights in this situation do i have any recourse ? .
thanks in advance
Submitted: 1 year ago.
Category: Australia Law
Expert:  Leon replied 1 year ago.

Good Evening

My name is ***** ***** I am a NSW Solicitor. Thank you for your question, and will do my best to assist you with your question. Please understand this is not legal advise Please understand this is not legal advise but a guide to assist you.

The type of loan you are referring to appears to be an overdraft.

If you are unhappy with the way the bank is dealing with your account you can report them to the Financial Ombudsman Service.

https://www.fos.org.au/

You should contact your bank tomorrow morning and ask what is going on and if you do not get any satisfaction then you should take it further.

I hope this makes sense?

Customer: replied 1 year ago.
Thanks Leon
Not really the clarity is was chasing . The loan is a business loan not an overdraft .
As for the FOS they're just a toothless tiger and paid for by the banking system so a bit like trusting the fox in the hen house
I will be in contact with the bank and look at shifting my accounts
Expert:  Leon replied 1 year ago.

Good Morning

You should look at having the loan as a separate loan. I have a business loan but it s not attached to my cheque account. It is a separate business loan and secured on the office.

I only have to pay interest and If I want I can pay capital. It is like a home loan but higher interest.

The FOS is toothless but if they make a decision the bank has to comply and you can enforce it through the courts if they do not.

I hope this is clearer.

Good luck with it.

You are very welcome and thank you for using my services.

If I have missed anything, or you have any further questions please let me know

If there is anything else in the future please do not hesitate to ask.

Please do not forget to leave positive feedback.

Regards

Leon

Expert:  Leon replied 1 year ago.

Good Morning,

I am following up my last post.

Are you still in need of assistance?