Sunday, September 25, 2011

Hell hath no fury... like a mortgage broker scorned

Aug 2008

My mortgage broker ends up sending me an invoice for $110 + $165 for extraordinary work performed. What??! Firstly, he charges me for the amount he told me I wouldn't need to pay. Secondly, he's charging me for his 'extraordinary work performed'. He ended up creating more work for me. And because of his delays, I couldn't change my loan and ended up fixing more than I wanted. And there was no way I was paying for his poor customer service.

So I refuse to pay. Actually, I follow his style, and just ignored his emails and phone calls.

Next thing I know, he's taken me to VCAT. So petty. What a waste of resources. And it takes months for a VCAT hearing.

The amount is not that much ($275 inc GST), but it is more a matter of principle. I would rather take 1/2 day off work and go to VCAT than pay him without a fight.

May 2009

On the day of the VCAT hearing, he calls me. In hindsight I should have ignored the call, but curiosity gets the better of me and I answer. He's calling to ask if I will be going to the hearing. Seriously? I tell him yes. But that is why I should have ignored the call. Because he might not have turned up if I had not answered.

So I front up to my first 'court' hearing. Excited, but also with slight trepidation. I don't really have anything to lose (except money!).

We're given the option of making a non religious oath or swearing on the Bible, which I take (didn't check which version it was!). He gives his side of the story, I mine. The VCAT member asks some questions, and finally she rules that I have to pay $110.

Not happy about it, but I accept it.

Shortly after my mortgage broker writes me an email:
"After hearing each other speak in the VCAT hearing, I am beginning to feel that we could have resolved this together.

I wanted you to understand that once I had submitted the deal to Westpac, that my role was complete and that the rest of the process would have been handled between you and Westpac. Hence then I did not understand why you would want to stop me from earning the commission when there was no real benefit to you.

Nevertheless, after hearing you at VCAT, I cant help but feel that you have a reasonable mind and I am now just saddened we could not have achieved good for each other last year. I understand that at that point my workload was higher than at any other point I have experienced, and as a result you felt neglected. I see this now. I am sorry if you felt that way, it was not my intention for this to happen.

I would prefer to provide you with an actual loan rather than take $110 from you.

To this end I want to offer to refinance your existing loan at no cost to you. I can place you with a new lender on an interest rate of 4.84%. The entire transaction will be at no cost to you.

I hope you can give me the opportunity to show you how good my work can be. You will benefit from this by saving money on your interest. Plus we can turn this around and create a happier relationship between us and that would make me happier.

Let me know your thoughts."


Dumbfounded. What nerve! Not sure what his intention/motive was. Sincere? Or rub it in as to how much interest rates had dropped? He should have known that the loan was fixed for 3 years and I couldn't break it.

Anyway, I didn't care. He didn't deserve a response from me. And after that email, I was not going to pay the $110. Haven't heard from him since.

To emphasise lesson learnt: Don't go with a mortgage broker - especially him!

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