Bank Refusing to Give Payout Statement on Car Loan

[Ej1204]

Hi,
My husband and I have recently purchased a car with finance through car dealer.
My husband's current car is on secured loan from a bank, and as he traded this car in, we need this car loan statement from the bank to switch the finance across to car dealer.

Now the bank can give us payout figure with loan policy number and bank account number, but they are refusing to put any vehicle information on it and dealer is not accepting this statement saying it can't be connected to the car we are trading in !!

Even the dealer asked bank to put details on the statement and we provided the original documents when we started car loan ( it has all vehicle info and loan details) to the bank, they just keep saying "we don't do it".

The dealer is trying to put 2 documents (payout figure and original loan details documents) together but it's not looking good.

Surely the bank refusing to give us statement because they don't want to lose their loan is illegal?
Is there any law that we can point out to the bank??

Please help us as we're stuck in a middle of a deal and we really want this car!

Thanks for reading and hope it made sense.

 

[Sophea]

It does sound odd that a bank would refuse to provide details of its security on the payout statement of a loan. You could request a document detailing the security over the loan that also provides the loan and account numbers that way you could marry up that with the payout figure. Or simply request a complete copy of your loan file.

I am not aware of any specific banking code or regulation that specifically states that this information needs to be provided, but it is a financial product that you have obtained through the bank, so one would expect you would be entitled to obtain any sort of information you require regarding your own affairs.

I would threaten a complaint to the Financial Ombudsman. http://www.fos.org.au/about-us/what-we-do/ You may also be able to speak with someone there who could refer you to a specific code or requirement the bank must adhere to.

 

[Ej1204]

Hi Sophea,

Thanks so much for your advice.

After all bank kept refusing but car dealer accepted to put 2 things together so we've managed to switch the loan across.

Here's the pointless conversation...

Us: What happens if we stop paying this loan?

Bank: we will collect your car as your debt.

Us: So you just confirmed this loan is tied to our car ?

Bank: yes.

Us: We need what you've just said on the document !

Bank: No, we don't do that.

... WHY !?!?

But anyway I'm just glad we've got a new car finally and got rid of this crappy bank loan.

Thanks for the useful link I will def use it next time if happens !