that was harsh

utmbuilder

I bought a home 2 years ago, am up to date with the mortgage, I have 2 small personal loans, 1 of them was behind by 1 month arrears about 200 euro, around 4000 a month goes through my account.

I got a letter from Bank of Ireland today, which was exceptionally harsh , stating they plan to close all my accounts for delinquent behavior.

I called up and paid off the 280 euro arrears, and they bank that everything was fine.

Is this the new norm? Some people would find such a letter distressing I was quite taken a back by it.

What goes through your account is absolutely irrelevant. You’re in debt to the tune of at least a mortgage and two personal loans and you’re not attending to those debts as you should.

Pay it on time or face the consequences which include letters telling you late payments and delinquency will not be accepted by your bank. They’re right.

They provide a service but you’ve an obligation to your creditors and acting like they’re in the wrong is ridiculous. After all we’ve been through with the banks, the least we should expect from them now is that they’ll cut put this stuff, letting things slide and giving people the impression it should be okay to run late.

If everyone paid what they agreed on time, the banks would never have needed taxpayers bailouts, so wise up and pay your loan on time.

utmbuilder

JayZeus wrote: »

What goes through your account is absolutely irrelevant. You’re in debt to the tune of at least a mortgage and two personal loans and you’re not attending to those debts as you should.

Pay it on time or face the consequences which include letters telling you late payments and delinquency will not be accepted by your bank. They’re right.

They provide a service but you’ve an obligation to your creditors and acting like they’re in the wrong is ridiculous. After all we’ve been through with the banks, the least we should expect from them now is that they’ll cut put this stuff, letting things slide and giving people the impression it should be okay to run late.

If everyone paid what they agreed on time, the banks would never have needed taxpayers bailouts, so wise up and pay your loan on time.

Good point

Jim2007

utmbuilder wrote: »

Is this the new norm? Some people would find such a letter distressing I was quite taken a back by it.

So you break the terms of an agreement you committed to of your own free will and get all upset when the other party insists that you stick to the terms of the agreement.... if it was the other way around, would you be happy for them to hold on to some of your cash???

Be very careful about this kind of situation because in most cases such as this, the consequences of having the bank close out your accounts is that all debts, including mortgages crystallise. In other words they become payable on demand.... Which means you could end up having to reapply for a mortgage...

Cape Clear

Banks expect to be paid on time always but won't send the lads around to rough you up.

skippy2

I think its a good idea to Keep your mortgage and personal accounts in separate banks. So they cannot go after them if there is cash in those accounts

Cushie Butterfield

How long were you in arrears, as it sounds like you may have let it slide for more than one month, with the possibility that they've already contacted you regarding this matter. If that's the case & you didn't contact them then it wouldn't be an unreasonable threat.

If the above doesn't apply & you simply missed your most recent repayment, & this was their first time to contact you about it I'd consider that pretty harsh.

utmbuilder

It's all paid up now, it was just over 200 euro, and arrears reached 42 days.

My mortgage and loans are under 1350.

The other loans and mortgage have always been up to date.

The letter they sent would assure you never get behind again, i have since switched my finances around to leave a 2 month buffer in that main account for the loans, and use my AIB account for general day to day banking.

JDD

I'm not sure what they were threatening here. They couldn't have demanded full payment of your mortgage as long as you were up to date on your payments for the mortgage. There's a Code of Conduct on Mortgage Arrears, and they'd be well in breach of that if they even attempted to foreclose for you going into arrears on another, smaller, unsecured loan.

They could technically demand you repay the full amount of the small loan (perhaps even both small loans) once you go into arrears. In reality they wouldn't do it after one missed payment - by the time they got it to court you'd have paid the missed payment and nothing further would happen. Usually banks don't send letters like that until you have missed two or three payments. I think it's a bit stupid of them to send you a letter like that after one missed payment when they know that the vast majority of people will have caught up by the next month. Don't threaten something you have no intention of doing, just to put the sh*ts up someone.

utmbuilder

utmbuilder wrote: »

Good point

.. and you thought the bank letter was harsh!



:P