Loan repayment bounced, seeking recourse

[analogica]

I took out a 5 year loan (unsure of whether I can say which bank) to fund my final year of college, agreeing to make monthly repayments, originally to have a direct debit take the amount on the first thursday of each month since I was working part time, and Thursdays were pay days, but later advancing to the first of each month. I got my mother to sign it with me as insurance, and happy days: a relatively small amount to pay each month, and after 5 years build a good credit rating.

All was going well until this month, where I had enough to cover the loan repayment, but another direct debit had been added to the tally, albeit a very small one, and I hadn't enough to cover the 2 direct debits. The total was taken out, and I was put into negative on my current account. The following day, the bank bouced my loan repayment, fined me a tenner gor unpaid loan, and cleared the much smaller direct debit, putting my credit rating in the toilet.

Surely the bank would prioritise
A) a loan repayment to themselves
B) the direct debit with highest consequences for missing
C) the larger of the 2 direct debits

After trying to call them to adress this I was to be transferred to the loans department, and after being put on hold for a while, I was told they left since it was now 4. I told the representative I don't accept the automated response since it drasticaly affects me and my credit, and they hang up. I later filed a complaint.

What is my recourse? How do I try ammend this, or is it lost cause? I feel like my arguement for getting this reversed is solid. Any feedback is greatly appreciated.

 

[cspence95]

@analogica No offended but your argument is not solid at all. Everything is based on "they should do it because it's in my best interest for them to do so".

That is unfortunately, not how the system works. Simply make the payment now, and move on.

 

[chronoswirl]

@analogica Mountain out of a molehill, won't affect you at all and has thought you a lesson, it's a cheap lesson too... Make arrangements to pay, and either make sure tou have enough to cover both debits on the same day or change their dates, plus stop borrowing money to buy things if possible.

 

[nixfifty]

@analogica

relatively small amount to pay each month, and after 5 years build a good credit rating.

In Ireland, there is no such thing as building a credit rating. Its not like America where you build your rating by having a credit card or loan and paying it off on time.

 

[yuliette]

@nixfifty This should seriously come up as an FYI any time anyone posts on here

 

[nixfifty]

@yuliette I don't think it's even the first time I've commented it on here. It's a very common misconception.

 

[believe99]

@nixfifty When applying for lending a credit score is applied to an application. By paying back loans on time and cc’s it informs decisions although no exact system(yet) for credit ratings.

 

[rickylee]

@believe99 In Ireland, your credit worthiness can only be reduced by not paying back loans, it doesn't get improved by taking out loans and credit cards then paying them back, like in the US.

 

[believe99]

@rickylee Well your credit worthiness can be increased if you back back loans and credit cards as a CCR report shows previous lending and it definetly influences a banking decision to give out credit, whereas if you’ve never had lending before bank are certainly skeptical.

 

[rickylee]

@believe99 I don't believe that is true in Ireland at all. The absence of ever having any loans or credit cards isn't worse for your credit rating than having had them and paid them off. The only thing that will impact your creditworthiness is if you have missed loan payments. You can make your creditworthiness worse, but you can't make it better. You won't be in any way penalised for not having had any loans.

 

[rrobsr]

@rickylee You’re right. Not having a loan/cc history is not a negative and is definitely not looked as such by the banks/lending teams.

 

[believe99]

@rickylee It is certainly does the bank May not openly say it but having worked in the process they definitely do along with your bank account is graded depending on how you operate it.

 

[rrobsr]

@believe99 Yeah but only in terms of missed payments/missed dd/so. You can’t build your grade by getting loans and making repayments. The lending team don’t look at having no loan history as a negative at all.

 

[believe99]

@rrobsr They really do I used to work in this line of work they won’t openly say that but they do they would rather see somebody who’s paid x amount over somebody who’s never paid back a loan in there life as it shows they understand how to operate a loan.

 

[cmv]

@believe99 This is true, but a single bounced payment won't make a difference - especially because OP likely won't be applying for a mortgage for years

 

[believe99]

@cmv Agreed, but the main point OP should take from this is take responsibility for how there account operates because of not it will come back to bite you in the ass eventually.

 

[rrobsr]

@analogica

what is my recourse?

You didn’t have the money for both payments, how is that the banks fault? Pay it and move on. Don’t waste anymore time or energy on it.

 

[karrose]

@analogica The money is there, or the money is not there. The bank dont pay somebody to analyse your accounts to see which payment they think the account holder would prefer to make.

The onus is on you to have sufficient funds for your commits.

 

[resjudicata]

@karrose Depends on who’s account it is

 

[angel222]

@analogica Christ.

You have no recourse.

Pay the loan asap.

You can miss two repayments before it appears on your CCR record.

We need to teach children how to behave from a financial pov in primary school. This is amateur hour and potentially has serious impact on your future. It’s on you to make sure you have enough money in the bank to meet your obligations. The bank isn’t your mother.