MSE News: Mass refunds for thousands of GMAC mortgage customers

Former_MSE_Guy · 29 October 2009 at 11:56AM

This is the discussion thread for the following MSE News Story:

"Tens of thousands of mortgage customers will be entitled to compensation after the city watchdog fined a lender for poor treatment of those in arrears ..."

Read the full story:
Mass refunds for thousands of GMAC mortgage customers

wizk1 · 29 October 2009 at 12:40PM

MSE_Guy wrote: »

This is the discussion thread for the following MSE News Story:

"Whilst our arrears charges were in line with the market, in hindsight, we fully accept that for certain fees our estimates of the costs were not proportionate to the additional administration actually required."

Now let's hear the banks say the same thing regarding overdraft charges

batley1 · 29 October 2009 at 9:18PM

I used to be with GMAC, but they sold my mortgage to someone else(without my knowledge) and after the speaking to them today Ive found out a few things I thought I would share:

1. Anyone who has or had a mortgage account with GMAC will receive a letter informing them of their entitlement to a refund at the latest by the 30th November.

2. If you are entitled to a refund you will then receive a cheque within 30 days of receiving your letter.

3. If you have moved address since having your mortgage with GMAC, you need to ring them and update the details, or everything will be sent to the address on their details.

In theory, the money could be here before christmas, so could be a nice bonus. As someone who went through some hard times with my mortgage, when the interest rates were at the highest, this is very welcome and I will try to keep you updated.

marks77 · 30 October 2009 at 1:01AM

We have been in arrears with GMAC. We were hit with a £50 charge for being in arrears EVERY month as well as the £15 charge for not paying by direct debit. Does this FSA ruling cover that £50 charge aswell?

Thanks.

meladie · 30 October 2009 at 8:38AM

marks77 wrote: »

We have been in arrears with GMAC. We were hit with a £50 charge for being in arrears EVERY month as well as the £15 charge for not paying by direct debit. Does this FSA ruling cover that £50 charge aswell?

Thanks.

i had exactly the same to pay each month please someone tell us we are gonna get it all back.

newreclaimer · 30 October 2009 at 9:14AM

I think we will get these arrears charges back but it will be deducted from your outstanding mortgage balance if you still have a mortgage with them.

I'm going to write to them before they write to me because they also have to pay redress for all the problems these charges have caused. For example I'm going to point out to them that their charges kept me in arrears meaning I was unable to get credit for anything else or be able to re-mortgage to move away from them. All these things need to be compensated for aswell.

batley1 · 30 October 2009 at 12:19PM

The only things they are refunding are:

1.Charges for non-payment of the monthly mortgage payment by direct debit when the account was in arrears and no monthly mortgage payment was being made.

2.A portion of the solicitor’s instruction fee (£39) that exceeded the actual cost.

3.Early Repayment Charges applied to, arrears fees and charges.

4.A flat rate of interest of 8% will be added to the amounts due to customers.

The £50 arrears fees will not be refunded from what i gather, and from what i was told on the phone.

Just to remind you, you will hear by the 30th November, no later, about the refund, and then within 30 days of receive your letter, you will recieve the refund itself.

I'm going to keep everyone updated on how it goes for me, as I no longer have my mortgage with them, so I should recieve the money.

I would imagine, that unless you are still currently in arrears or have outstanding charges, they will refund it to you.

overross · 30 October 2009 at 12:36PM

HI
does any one know if this ruling appliesto GE Money Home lending ?

or

who the other 5 lenders are who are being investigated. ?

cheers

Gorgeous_George · 30 October 2009 at 1:39PM

The FSA says GMAC treated customers behind on payments "unfairly" and must now repay up to £7.7 million, plus interest, to well over 46,000 borrowers

That's about £167.39 each. Obviously, some will get more and others will get less but I don't think anyone is going to be able to retire on the compo.

Do the victims not share some of the responsibility?

GG

batley1 · 30 October 2009 at 2:38PM

Yes they do, but the things GMAC are been made to refund are things they have overcharged for (solicitors fees) or for charging for not paying by direct debit, when no payment was made at all...bearing in mind, that they charge £50 a month if you are in arrears.

In a perfect world I would love not to have got behind with my mortgage, but GMAc made it almost impossible to get out of arrears once in (they were charging me £65 month basic fee's when I wasnt' making payments). I'm not, and will never say they should not charge for the costs incurred, but they should not charge to make a profit out of the costs.

Punjabi_Princess · 4 November 2009 at 2:59PM

HI there,
I was charged £1995 for taking out a gmac mortgage along £750 solicitors fees just for the purchase.

A year ago I wanted to move but take mortgage with us, I was charged another £1500 to transport mortgage but this all fell through.

Will I get any compensation?
P

MSE News: Mass refunds for thousands of GMAC mortgage customers

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