No loss suffered after delay in activating new loan arrangement

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No loss suffered after delay in activating new loan arrangement

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Summary:

Angeline approached the bank to restructure her home lending and it agreed to her request. However, the bank was a day late in completing the necessary paperwork, resulting in the transfer of incorrect amounts to various fixed-term loan accounts when an automatic repayment was made on what should have been the start date of the new arrangement. Sixteen days passed before the bank manually corrected the amounts in each of the loan accounts. Angeline complained to the bank, but was unhappy with its explanation and came to us.

Published:

October 2021

Our investigation

We found there was no good reason for the delay in either correcting or explaining the mix-up, which turned out to be the result of human error. However, the bank did eventually correct the interest charged on the loans so Angeline suffered no financial loss from the mistake. The bank apologised for the delay in explaining the error and putting things right. It also offered her $750 in recognition of the stress and inconvenience she had suffered.