*new update* Overcharged interest on homeloan

NEW UPDATE:
Today I received a call from them advising that there are many customer facing the same issue.
I think the letter below will provide a better explanation, see below:

As discussed, there a number of other customers who have experienced a similar problem; The Bank at present is working on a solution to correct this issue. This will be done as a recast to the effect Home loans. This will mean that your home loan will be adjusted to reflect the correct interest charges that should have been applied.
You will be advised what the adjustment amount will be. At this time due to the number of cases involved the time frame is unknown, but as advised I will be checking with our maintenance people for any updates.

would like to know if any ozbargainers have been in a similar issue and what remedy they offer.
isn't unfair on us?? the overcharge money they hold now can be better off being used somewhere else! :(

Below is the original post:

So, I was quiet free today and was looking up at my homeloan account and just curios on how they calculate my interest $. I took a calculator and doing some calculation but I just cant get around the amount they charged me this month. So I called them and ask if they can explain to me on how they calculate this.
The lady over the phone explained that this is charged daily therefore any changes in the balance each day will affect how much it is charged every month.
So I looked closely and calculate in on daily basis yet I still get a different amount. im not saying a $5-$10 different but it was $300.00 different. I shared my concern. The lady over the phone who was confident before suddenly stops and hesitant. she then put me on hold as she said she needs to check on something.
When she came back, she informed me that they have been overcharging me for the interest and apologies. Apparently due to a system and human error on their behalf, they somehow overcharged me.
She kept apologizing and said that they will organize backdate refund.
After thanked her and hung up the phone , it started to hit me. what happen if I didn't actually call them today? They will ended up charging me $300 a month extra on my interest and how much will that be for a year?? 10 years ?? 15 years??? DAMN!!!
So people, check your loan!! check your interest !
Also if anyone have similar experience in the past , please feel free to share on how you get remedy for this? did they give you any compensation etc? I am now thinking of filing a formal complaint but was just still thinking if this will just wasting my time..

Thank you

Comments

  • +5

    I have to ask… Which bank?

    • commonwealth bank it is!

  • This is a very serious issue!
    Yes, need to know which Bank?

  • I would check all past transactions as well.

    It should be an easy calculation ie Principle X Interest Rate / 365 times number of days in the month

    I just checked mine, and mine seems spot on.

    • How do u do it on the calc

      • +1

        lets say your loan balance is 100,000 and interest rate is 5.30%

        100,000 times 5.30% is $5300

        5300 divide by 365 is $14.52 which is your daily interest

        $14.52 times 30 or 31 is $435 or $450

        That's it.

        If you have an offset account, take that off your principle before multiplying your interest rate.

  • +2

    Make sure they pay you interest on the interest they charged you, the sword of usury cuts both ways.

    • how do you do that?

      • This is the template I used for when Yarra Valley Water overcharged me for the De Desalination Plant, just modify it to launch full fury at these institutions that invent money out of thin air and enslave you to pay it back.

        Below is a the template letter drafted by Mr Galbally QC:

        Dear Sir,
        I advise I am a customer of Melbourne Water [or whichever authority is the relevant authority]. My account number is [insert details]. I have been advised that over the last 3 years or so I have been overcharged with respect to my water bills.
        Would you provide me within the next 7 days the following:
        • Details of the amount or amounts overcharged in respect of each account rendered;
        • When you will repay the overcharged amount and at what interest rate?
        Should you not be able to repay my money within a reasonable time, I shall have no alternative but to deduct it from your future accounts together with the current overdraft interest or existing overdraft interest at the time.
        I look forward to your reply as soon as possible.

        Yours faithfully,
        [insert name]

  • I remember back a few years ago there was actually a company spruiking software that detected these 'anamolies' (and they were ALWAYS in the bank's favour).

  • Had a similar experience with G.E.Money some years ago.
    Yes, do check the interest calculations on your mortgage and credit card bills.
    Lots of scamsters out there!

  • We lodged a complaint with the Financial Ombudsmen recently regarding NAB charging far in excess of the rate that they advertised for new customers. They could not demonstrate to us why we were being charged in excess of that rate, nor was there any way of us determining our rate from their website.

    Only after we escalated it to FOS were we rebated for the excess interest charged. They tried to mislead us before resolution.

    Never trust your bank to charge you what you agreed to. Always double check.

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