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MSE News: Hope for Yorkshire and Clydesdale Bank mortgage reprieve
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Former_MSE_Guy
Posts: 1,650 Forumite
Comments
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Yorkshire and Clydesdale Bank admitted last month 18,000 of its customers on variable rate deals have underpaid after it miscalculated monthly repayments for almost two years in some cases (see the Mortgage payment hikes MSE News story).[Bev] told MoneySavingExpert.com she had budgeted for the lower payments and had recently spent hundreds of pounds on a new central heating system at home. But had she known of the higher payments, she wouldn't have splashed out.
So what would 'Bev' be doing if the BoE bank rate shot up 1% unexpectedly in the coming months? What will she be doing if it goes up to 5%?Conjugating the verb 'to be":
-o I am humble -o You are attention seeking -o She is Nadine Dorries0 -
Shouldn't ALL Clydesdale Bank customers be holding out for past underpayments to be written off?
After all, the Ombudsman says that:
"If the lender is entirely to blame ...We will (usually) tell the lender to write off the capital shortfall that has built up to the date the mistake was sorted out."
Seems pretty clear to me. Shame not so clear to Clydesdale Bank.0 -
One law for the banks and their lawyers and no law for us!
I wonder how many times the Yorkshire and Clydesdale Bank calculation software has had a glitch and "overcharged" 18,000 + customers ?
More than once I'll bet.... I'm sure the Directors would keep that one quiet and not send back the overpayment !
When there's a rate change, how many of us get our calculators out and check the change vs monthly payment is correct ?
We generally groan .... and suffer the payments...
Heads they win and tails we lose !0 -
The stance I have taken is that the amounts paid, whilst less than what we needed to pay under the revised (corrected) calculations, were sufficient to cover the capital element of the mortgage. The interest element is effectively the profit element for the bank on the advance, and as they miscalculated this figure it should be written off.
8 weeks after my initial conversation with the bank I am still awaiting a decision. I will update this forum once I have heard back from them.
In the meantime I have advised the Ombudsman so that I can refer the matter to them in the event that the Bank disagree with my argument.0 -
The stance I have taken is that the amounts paid, whilst less than what we needed to pay under the revised (corrected) calculations, were sufficient to cover the capital element of the mortgage. The interest element is effectively the profit element for the bank on the advance, and as they miscalculated this figure it should be written off.
8 weeks after my initial conversation with the bank I am still awaiting a decision. I will update this forum once I have heard back from them.
In the meantime I have advised the Ombudsman so that I can refer the matter to them in the event that the Bank disagree with my argument.
Interest = Profit? That's an interesting stance you have there. I would not expect the ombudsman to have a great deal of sympathy with that approach.0 -
Don't see why not. The interest on a loan is effectively compensating the lender for the opportunity cost of not holding the money themselves - they calculate it wrong - their loss.
And as for the Ombudsman - when I spoke with them they were very sympathetic.
How would you approach the issue?0
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