Hi A friend of mine recently went to their morgage institution to talk drawdown facilities. Well yes she was told, she could draw an extra $13000. But somewhere in this conversation she gathered that this $13000 was the amount she had paid into the morgage account over and above the monthly fee stipulated in the contract over the 10 year period so far. She also discovers that these extra payments have never been applied to the morgage but have been kept in a separate account, without her knowledge and without reducing the interest payments to any degree over the 10 year period. She confesses to not picking this up when receiving the statements.
The bank says this is normal policy. Is it? Or is she being ripped off? And if she is being ripped off, how many other people are being shafted.
She wasn't even getting a statement showing these lump sums that were sitting in a "separate account".
I said I'd make enquiries from the whiz kids. Any clues?
