Mortgage insurance

caracal_77

bucketfloozy wrote: »

Doesn't the extra interest they've paid... all be it for the 6 extra months get classed as financial loss?

I think it does. By the way, you can get compensation for distress, inconvenience and other non financial loss as well. See:
http://www.financial-ombudsman.org.uk/publications/ombudsman-news/71/71-ombudsman-focus.htm

I think they deserve to be compensated (based on the information you provided), either direct by the bank or after complaining to the FOS.

As I said before, bank makes mistakes (and admits it), bank pays.

dunstonh

The correct action should be for the OP's mother in law to make up the missing payments (as she would have paid less each month for those 150 months) and only be charged interest for the original period of 150. That would put her in the position she would have been and the sort of response you would expect.

I dont see why the bank should write it off though as the Ops MIL has benefited from lower payments. So, there is no financial loss. Maybe a inconvenience goodwill payment of £25-£50 on top.

feisty1

Regardless of calculations they should not be lending into retirement without the permission of the client, which they clearly never obtained.

dunstonh

feisty1 wrote: »

Regardless of calculations they should not be lending into retirement without the permission of the client, which they clearly never obtained.

Its only by 6 months and past rulings have allowed up to 12 months grace as its usually impossible to get a mortgage to finish in the same month of retirement.

feisty1

dunstonh wrote: »

Its only by 6 months and past rulings have allowed up to 12 months grace as its usually impossible to get a mortgage to finish in the same month of retirement.

Quote: The bank made an error and used a period of 156 months instead of 150. Quote:

Maybe on a sourcing system an exact term can be calculated, however by the lender it can be done in years & months. Also, the point is being missed here, this was taken into retirement without the client's permission. It could easily have been that he couldn't have met those monthly payments if only on a State Pension.

dunstonh

The bank made an error. It happens. The FOS doesnt suddenly give out redress payments because an error occurs. It accepts errors happen. This error at this point has created little or no financial loss.

Remember that the monthly payments have been slightly lower. So, if the liability was redrawn to match 150 payments then you would expect the OPs MIL to have to pay the difference. This calculation is consistent with other complaints of a similar nature. Then a small goodwill gesture for the error is likely to be paid with it.

It is easily resolved by the bank if the OPs MIL wants them to resolve it. All it takes is to ask them to redraw it on the terms of the original request and pay the money that is due and ask for a goodwill gesture to cover the time spent on dealing with this error.

feisty1

dunstonh wrote: »

The bank made an error. It happens. The FOS doesnt suddenly give out redress payments because an error occurs. It accepts errors happen. This error at this point has created little or no financial loss. =.

I am not suggesting they should take this to FOS, however we have all agreed & acknowledged an error has occured

Quote "This error at this point has created little or no financial loss."
If that is the case the bank should take responsibilty and write off the error.

If this was my client, I would most certainly fight their corner on this one and I am confident i would come out with a result that would benefit the client.

dunstonh

Quote "This error at this point has created little or no financial loss."
If that is the case the bank should take responsibilty and write off the error.

Its quite possible that the cost of the goodwill payment would cancel out the payment required by the OPs MIL. So it is a possibility.

I would expect them to do the correction calculation as a matter of course to see what is owed. Then if its less than say £150 then write it off.

If this was my client, I would most certainly fight their corner on this one and I am confident i would come out with a result that would benefit the client.

It isnt exactly a big issue though and the bank will easily resolve it. The OPs question was asking about getting compensation. There is no grounds for compensation here beyond a small goodwill gesture and correction.

Its trying to make a mountain out of a mole hile.

feisty1

Maybe Reimbursement would have been a better word rather than compensation. The fact remains, the bank on this occasion should take responsibility for it's error. As for commenting on the value of the error, this has nothing to do with it. The fact remains these people have kept their mortgage with the bank for all these years, obviously trusting in the bank because if this had been reviewed the error would have been picked up. This has obviously caused some distress ........A complaint is a complaint and I think you would have difficulty treating it as "Its trying to make a mountain out of a mole hill"