Arrangement Fees. Can we claim back?

kat-bob

We applied for a mortgage with the Woolwich a few weeks ago. It had an arrangement fee, which they did advise as non refundable, of £995. We were rejected at the first stage, credit check. Can we claim the fee back? I was under the impression that the banking code or such policies stated that charges must reflect the costs involved...

We have tried to contact Woolwich to make a complaint to claim back, but after being given 3 wrong numbers, calling complaints from a number on the mortgage site and being told they dealt with banking complaints and numerous other mis-directions, I was going to write a formal complaint and request for refund. I understand we signed a form acknowledging it was non-refundable but surely a day and being rejected is not fair. They also checked our credit reports 3 times, is this nomal?

We actually applied through a IFA but are no longer using them as I found a better deal with another lender, going direct. I do feel we were not advised very well as the advisor did not even ask about our credit reports, and however much I am, my partner is not very financially minded and did not understand credit ratings. The IFA did say they would wieve their fee... although I do ask - fee for what!

Any advice is much appreciated. Thanks

Met_Bobby

Why were you turned down?

_Andy_

Was an AIP done before the application was submitted?

Also you say you're now going with another lender, direct - I'd be a bit concerned that you've just been declined by a high street lender -have you established what on your credit file caused you the problems?

dunstonh

as the advisor did not even ask about our credit reports

Why would they want to? The IFA will either use their own system or the lenders.

It had an arrangement fee, which they did advise as non refundable, of £995.

Non-refundable. Although you do often get some scope for movement in certain cases. It really depends on the reasons why it was rejected.

I was under the impression that the banking code or such policies stated that charges must reflect the costs involved...

No such rule.

The IFA did say they would wieve their fee... although I do ask - fee for what!

Time. Although the full work would not have been completed due to you being turned down. Which is why it is being waived.

Robert_Sterling_3

At first sight it does look like a chiz.

Met_Bobby

Robert_Sterling wrote: »

At first sight it does look like a chiz.

What's a chiz?

Dan_1976

Lenders are or were just before I gave it up, charging non refundable fees to prevent people aplying left right and centre and wasting lenders time and money. That AIP may have cost £500 plus to process if lots of underwriters got involved.

Why did you pay it knowing it was non refundable, although it sounds like bad practice I can see why lenders do it and I cant see that you have a complaint to up hold.

kat-bob

Unfortunatly the reason we were turned down was due to my partners credit history, so now I am going directly and I am applying alone.

I must say, I do think that the IFA was not bad, I just knowthat I was able to find as much information as he gave before our meeting, but I am a little studious at things like this, once I get my mind set. We just put our trust in them, but speaking to various friends, after being rejected, all their IFA's asked for copy credit reports before applying, and so we took that as the norm.

I understand that we were clearly rejected due to bad credit history and that the fee was non-refundable, I just feel it is disportionate to the application as far as it went. We do not have alot and we need any penny we can recover. I just wanted to see if there was anything we could do or say to strengthen our claim.

I keep thinking, how many applications are being rejected so early... It does seems like a nice earner for the lenders. Am I being too pesimistic?

Thanks for the repsonses above

Met_Bobby

kat-bob wrote: »

Unfortunatly the reason we were turned down was due to my partners credit history, so now I am going directly and I am applying alone.

The application form would have have asked about your partners credit history. If the IFA had been made aware of potential problems at this stage they should have advised that a credit report be obtained first. If they were not made aware by your partner then it is not the fault of the IFA.

Having said that, have you asked the lender for a refund? No harm in asking is there?

Robert_Sterling_3

Met_Bobby wrote: »

What's a chiz?

I think it originates in a book called "Down With Skool"
Nigel Molesworth uses it.

kat-bob

We have made numerous calls to differnent departments, and give many wrong numbers by them. I had tried to email them and requested a call back but nothing yet , 2 weeks later.

I am putting it in writing to them this week, hopefully they will be gracious about it all. Fingers crossed.