AIB moved my negative loan to my current account

vinnyirl

I have had a student loan with AIB going on 4 years now. I have topped it up maybe 3 times to pay for college and associated fees. I have never missed one payment and in a time where people are trying to reduce their loan repayments I upped mine to get rid of it quicker.

Every year I have to go down to the bank and re-sign for my loan, as my mother is guarantor she has to go down and sign for it also. This year, unknown to me, my mother forgot to go down and sign. Instead of informing me of this they transferred the balance of my loan -€4,000 into my current account. This happened on Friday, the day of my graduation, leaving me with no money to go out and enjoy myself. They turned what should have been a memorable day into a disaster.

The thing I don't get is they have my mobile number, house number, address and email, they have all the same information for my mother aswell and we received no contact form them.

Has anybody got any advice? I am planning on going down to them on Monday morning and requesting my account balances to be returned to the way they were before they moved money plus a written apology. If they refuse to return my accounts to the way they were and I stop giving them money whats the worst that can happen?

BuffyBot

Your credit record is ruined and they chase the debt legally, which would not be good. Until you speak to them you don't know exactly what happened.

Rebel1977

Need to get a new loan in place again, when you signed last loan there would been a date when the loan would expire, thats why your current account went so much overdrawn.

Jim2007

While it is annoying when this kind of thing happens, there are a few things you need to keep in mind when dealing with this situation:

It is an automated process, the loan is too small for them to put much time into, so expecting them call you up and discuss it with you before they do anything is not realistic. It was your responsibility to make sure that the loan was renewed and you screwed up.

The loan is now due for payment and if you fail to pay it, you can expect that they will go after your mother for it. And that could be very unpleasant for her, especially if the loan is passed on to a debt collector.

Furthermore, failure to pay will have an impact on your credit rating and the consequence would be that you would have difficulty getting loans, overdrafts or HP agreements in the future.

The bottom line is that you need them more than they need you. You need them to renew the loan or come out with another solution that suits you and at the same time make sure that there is not impact on your credit rating, so an attitude adjustment would be a good idea before you talk with them.

chris85

You said yourself you forgot to go down and sign the documents as required yet you want an apology. Good luck. Your responsibility to have it in order.

Credit record would not be good. I would go down and explain you forgot to get it signed and ask very nicely would they amend the ICB record and setup the loan as usual. Ask in a bad way, like it sounds you will, and the person will be less likely to help and they have not technically done anything wrong.

As advised already get your attitude in order or will not end well.

Also bear in mind you may not get the loan to clear the current account since your credit record is now affected by this.

Jet Black

You better tell your mother too that shes going to have her credit rating ruined and that the bank will be legally pursuing her for the funds as she is guarantor.

vinnyirl

vinnyirl wrote: »

my mother forgot to go down and sign.

@Jet Black
@chris85
@Jim 2007

I quoted the part of my post you all skipped over. I did everything I was supposed to do including telling my mother to go down and sign.

I can understand that it's an automated process and may not have been intentionally done by someone but at the very least it is a customer service issue and this is terrible customer service. I had no way of knowing that the signing was not complete, hell I though it was all done and dusted untill my balance turned negative.

Anyway on my side or the banks im moving to a credit union.

Jim2007

vinnyirl wrote: »

I quoted the part of my post you all skipped over. I did everything I was supposed to do including telling my mother to go down and sign.

OK, so now it's your mother's fault.... Seriously!

vinnyirl wrote: »

Anyway on my side or the banks im moving to a credit union.

You do realize that you will have to be saving with the CU from sometime before you'll even be considered for a loan and that cash is tight in the CUs, so it is not a given that you'll even get it...

Furthermore an overdraft is usually "on demand" meaning that it can be called in at any time by the bank without notice and usually must be cleared within 9 or 12 months at the latest - I'm not sure which... so unless you have the cash in your pocket to pay them off when you call on them on Monday, I'd suggest you think twice before you start making a big song and dance out it.

chris85

vinnyirl wrote: »

@Jet Black
@chris85
@Jim 2007

I quoted the part of my post you all skipped over. I did everything I was supposed to do including telling my mother to go down and sign.

I can understand that it's an automated process and may not have been intentionally done by someone but at the very least it is a customer service issue and this is terrible customer service. I had no way of knowing that the signing was not complete, hell I though it was all done and dusted untill my balance turned negative.

Anyway on my side or the banks im moving to a credit union.

You are not being serious? Not even going to bother giving further advice. I know this will not end well for you with the bank due to your lack of taking responsibility and unwillingness to take on board the sound advice given here.

Keith186

Its some coincidence that they closed your student loan on the day of your graduation. They don't wait around!