Mortgage Exit Fees discussion

Thanks. I was waiting for this to be published. Guess its time to dig out the old paperwork and see if Halifax owe me any money!

Fyi the links at the end of that article are not working and neither are the links to the sample letters.

Martin's proforma letter is rubbish.

The "quote" from the FSA advice:

Martin wrote:

if a past customer who has paid a higher MEAF to exit complains, he or she can expect a refund of the difference between the actual MEAF paid on exit and the original MEAF

omits the beginning of the sentence, which actually reads:

FSA wrote:

So, for example, if a firm will only charge its current customers the original MEAF, then if a past customer who has paid a higher MEAF to exit complains, he or she can expect a refund of the difference between the actual MEAF paid on exit and the original MEAF.

What the FSA are saying is that if a lender states that it will only charge its current customers the original MEAF, they can only charge customers who have already redeemed their original MEAF. If they decide, instead, to charge their current customers their original MEAF plus RPI, for example, there's nothing (necessarily) wrong with that and to mis-quote a part of the FSA's advice is simply wrong.

There is no real point writing to lenders to complain until they have declared, by 28 Feb 2007 as required by the FSA, how they are going to deal with current customers. This same treatment will then apply to customers who have already redeemed, who will then be able to complain in an informed manner.

Writing incorrect complaint letters now, based on incorrect advice, is simply a waste of everyone's time.

Is it really worthwhile to write now, rather than in (at the very most) 29 days' time when you will be able to ask for the right amount in compensation?

does this include the ridiculous arrangement fees when you remortgage with the same company?

IClaudius wrote:

does this include the ridiculous arrangement fees when you remortgage with the same company?

obviously not, they are there detailed at the outset and it's your choice whether to pay them or look elsewhere.

Martin
I always think you should credit some of the people on the forums who have already 'blazed a trail' with respect to this. My first experience was over a year ago with A&L who had put their charge up from 150 to 295 during the 2 years I was locked in. I got a refund as reported on the threads but with help I think from lisy_loo (I think) who was probably the first - plus I seem to remember there was a reference to a newspaper article with a standard letter.
Michael