ME Bank lowers Caleb's interest rate and issues refund of overpaid interest
When Caleb decided to move back into his home, he was entitled to change the commercial interest rate he was paying to the residential interest rate. This would reduce the amount of interest Caleb needed to pay on his mortgage so that he could spend more on his extravagant date nights (the new kitchen was perfect for cooking up a storm). A while after Caleb completed and submitted all the paperwork, he noticed his interest rate still hadn’t changed so he called ME Bank to see what was going on. The bank told Caleb they had not gotten around to changing the rate yet. Caleb had been chasing ME Bank to change his interest rate for about a month when he came across Ajust. After using Ajust, Caleb heard back from ME Bank pretty quickly - they changed his interest rate and compensated him $40 for additional interest he’d paid on the commercial interest rate since submitting the paperwork.
Moving back in
Caleb is the proud owner of an incredible converted warehouse. He has always been into architecture and fell in love with the property from the moment he laid eyes on it. Whilst he’s owned the property for a while, it’s been rented out and therefore classed as a commercial property which means the loan attracts a higher interest rate.
Well, the time came for Caleb to pack up and move his family to their new home. The furniture had been set up, the kitchen was in action and the fridge was stocked. You could tell Caleb was feeling on top of the world because he was even cracking jokes… “What milk do they use in small kitchens?... condensed milk!” Well, at least Caleb thinks he’s funny! Long story short, everything was going to plan, that was until he saw his next bank statement.
Now that Caleb and his family had moved back in, the interest rate he was paying on the house was eligible to change. Instead of paying the commercial property interest rate of around 8%, Caleb was now entitled to a reduction meaning he would need to pay just around 5% interest as the property was now residential.
To get the interest rate changed, Caleb contacted ME Bank and provided them with the relevant details.
Changing the interest rate
Not a worry, thought Caleb. He jumped online and started the process to get his interest rate lowered. Caleb filled out the relevant information and provided all the necessary documentation. He clicked submit and gave himself a pat on the back - the boring jobs were done and he could focus on dinner - tacos on the menu tonight (it was a Tuesday).
When Caleb received his statement a few weeks later, he was shocked to see that he was still paying a commercial interest rate. He thought there must have been a mistake, so he decided to give ME Bank a ring to see what was going on.
Caleb explained his concerns to the ME Bank customer service representative who politely told Caleb that it seemed they simply hadn’t gotten around to it yet. Caleb thought this was an odd response, even for the bank.
Although he was tempted otherwise, Caleb decided to give the bank the benefit of the doubt and wait patiently. Days passed and by the following week, the interest rate was still the same. Whenever Caleb called ME Bank, they gave him the same reasoning. Now that an entire month had passed without Caleb’s interest rate changing, the cost was becoming more and more significant. Caleb’s date night budget was being impacted as he was paying a much higher commercial interest rate instead of the lower, residential interest rate he should have been paying. He was going to have to give the lobster a miss and instead go for cheaper fish fingers for Taco Tuesday this week!
Tired of waiting, Caleb decided to use Ajust's resolutions platform to raise his complaint. He jumped on the website and followed the prompts to provide all the relevant details. After only a few minutes, Caleb had submitted all of his information and the complaint was ready to be sent directly to the right people at ME Bank.
Mortgage rates are calculated based on a number of factors, including risk. A commercial property may be considered to have a higher rate of risk compared to a residential property, as there’s a chance a commercial property might go longer periods of time without a tenant. On the other hand, commercial properties are likely to have more return once a tenant is occupying the building. If you’re trying to get a mortgage for a commercial property, you will possibly find the process is a little longer! There’s usually additional documents, valuation and business plans the bank would like to see prior to agreeing to a commercial property mortgage.
Rates changed, compensation paid
After Caleb used Ajust, ME Bank was swift to act. Not only did ME Bank confirm they’d corrected Caleb’s interest rate, they went above and beyond his expectations by compensating $40 for the additional interest he’d paid whilst incorrectly on a commercial interest rate.
We’re glad everything worked out for Caleb. He noted to us how much easier he found using the Ajust platform, as opposed to contacting the bank by phone and email.
This is great to hear, given that Ajust was created for consumers like Caleb. As a bank consumer, when you need to change something regarding rates or fees, then it’s a great idea to contact your bank so they can help you out. In fact, we’ve written a bit about what you can do if you’re being charged incorrect bank fees here.
If you’ve contacted your bank and there hasn’t been progress, we understand this can be very frustrating. At times, things get thrown around and your complaint becomes unheard, particularly with the thousands of consumers banks have. If you find yourself in this situation, try using Ajust. As an independent platform, we can make sure your complaint gets to where it needs to go, so you’re being heard.
Enjoy those lobster tacos, Caleb!
Editor’s note: We’re always excited to share the experiences of consumers that have used Ajust. This Consumer Story is based on a real complaint made through our platform. But we’ve changed some details to protect the consumer's personal information and make the story more enjoyable for our readers.
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