Scarborough BS and Skipton Mortgage DD rip off

robwal1969

Originally Posted by scarboroughdd
I don't usually post to forums like this and I can't promise that I will return but let me.........

many thanks for this.very interesting.

would be interesting to know,how many people this will affect in all?

hunter001

I just called the financial omsbudsman and they are putting in a complaint for me on my behalf. anyhow when i explained to the guy the setup and what scar are asking. he asked why was i incurring extra interest because of a corporate decision i had no input on. anyhow when i call i'm gonna ask for a cheque for the interest after i pay off march's. if not i'll just take them to a small claims court.

Rednoseranter

I've got to be honest I don't think that this request is entirely unreasonable. The two firms are merging, and therefore merging operations which are actually, ultimately, in your favour as you are moving from interest calculated on a monthly basis to daily basis.

Rather that forcing you to make 2 payments in close succession they are giving you three options - pay early - pay in instalments - or not pay at all, unfortunatly the final two options will mean that you have to pay interest on the amount that you either defer or add to the mortgage. This will be entirely within the terms of the mortgage.

Look at it this way effectively your mortgage will finish a month earlier than anticipated - i.e. on the 1st rather than 28th of the final month.

If you want to make a complaint - state that ultimately that you do not see why, if you cannot pay early - you should be subject to the additional interest on the amount deferred or missed - you'll still have to pay it, but the award will compensate you. Good luck.

Mr_E_Man_2

What's wrong with the Scarborough putting the missed mortgage payment into a seperate account and not charging interest on it. This can be repaid when the mortgage is paid off.

I am wanting to change my mortgage and I was looking at the Halifax and they have a charge that they add to your mortgage and don't charge interest on, so it can be done.

silvercar

So you make your 28 March payment on 1 April, your 28 April payment on 1 May.......your 28 November payment on 1 December.

You get to the end of the year and you have made 11 payments not 12; so you have the money for one more payment in your bank account. Use it to make an overpayment on your mortgage of that amount and you will have incurred interest on that amount times two-thirds of the year. £800 at 5% for 2/3rds = £27. But you will have gained 3 days interest in your current account for each of the 8 months and from now on you will be charged daily interest.

They must be some people for whom the option to make 11 payments this year rather than 12, without blotting your credit record, will be very, very welcome.

Letmeiniwannaaskaquestion

silvercar wrote: »

So you make your 28 March payment on 1 April, your 28 April payment on 1 May.......your 28 November payment on 1 December.

You get to the end of the year and you have made 11 payments not 12; so you have the money for one more payment in your bank account. Use it to make an overpayment on your mortgage of that amount and you will have incurred interest on that amount times two-thirds of the year. £800 at 5% for 2/3rds = £27. But you will have gained 3 days interest in your current account for each of the 8 months and from now on you will be charged daily interest.

They must be some people for whom the option to make 11 payments this year rather than 12, without blotting your credit record, will be very, very welcome.

You still don't get it do you?
They are effectively moving the payment date forward by 3 days.
We will be paying 12 payments in 1 year & 3 days, yet they want 13 payments during this period.
If we fail to make the 13th payment, we will be treated as missing a whole monthly payment, when we have actually only paid 3 days later.
This is being enforced, nor by choice, it IS TOTALLY UNREASONABLE.

Letmeiniwannaaskaquestion

IMPORTANT UPDATE, PLEASE READ.

I have spoken to the FSA this morning.
They advise that we make formal complaints & if they are not resolved, or there are enough, the FSA WILL investigate.

Phone Scarb on 01723 368155 & register a formal complaint.
The girl i spoke to said they have "been very busy, as you can imagine"!

This gets the ball rolling, they MUST respond & this forces others such as the FSA & the Banking Onbudsman to look into it, if there is a large enough response

Letmeiniwannaaskaquestion

The FSA have also asked for complaints in writing to:

FSA Consumer Contact Centre,
25 The North Colonade,
Canary Wharf,
London
E14 5HS

fineanddandy

Letmeiniwannaaskaquestion wrote: »

The FSA have also asked for complaints in writing to:

FSA Consumer Contact Centre,
25 The North Colonade,
Canary Wharf,
London
E14 5HS

Thanks for the address, I will wait and see what the complaints team come up with, but I will say to them I will be contacting the FSA if they dont come up with a 4TH option, where I do not suffer any penalty at all.

I can imagine a lot of customers dont realise what Scarboro are asking, and suffer as a result.

Letmeiniwannaaskaquestion

"I can imagine a lot of customers dont realise what Scarboro are asking, and suffer as a result."

Yes, i reckon this is what they were banking on, the more people that complain the better.
The FSA told me, that although they dont investigate individual complaints, if they are drawn to the attention of a problem by several people, they are likely to intervene.