Reclaim excessive mortgage arrears fees, borrowers urged

tifo

dunstonh wrote: »

In general, the answer is no.

Who is your lender and what reasons would you give for asking for a refund?

Generally, the answer is YES.

Mortgage arrears fees should reflect costs only and not make a profit, just like credit card and default charges which are triggered by a customer's breach of contract. The same laws on unfair terms and penalties apply.

The difficulty is getting the banks or FOS to apply the law properly. Both will say the estimates are actual costs but this is not true until they prove it.

Many people are reluctant to take the matter to court because the bank will put on their legal costs, as per agreement. However, you can ask for a no costs order for the bank if you win because they can't break the law and then want to charge for you asserting your rights.

tifo

I lost my complaint at the FOS because it wasn't looked at fairly on actual costs but at the way they were applied.

I've now taken the matter to court under the principles of unfair terms and penalties. I've also added the fact that they charge me a variable interest on arrears and though I have reduced them significantly, I still pay around the same interest! I've also included the fact that my mortgage was sold in 2005 and 2010 and I don't know who to or why. Plus they charged me interest they 'lost' during the transactions, which should be no concern of mine as it was their commercial decision.

dunstonh

Generally, the answer is YES.

So where are all these posters claiming back charges and presenting success? Where are all these adverts on TV saying you can do it? Where are the consumer groups saying you can do it?

Hanky_Panky

tifo wrote: »

I lost my complaint at the FOS because it wasn't looked at fairly on actual costs but at the way they were applied.

So this completely contradicts your previous post. Brilliant - couldn't make this up !

tifo

Hanky_Panky wrote: »

So this completely contradicts your previous post. Brilliant - couldn't make this up !

The FOS didn't assess the arrears fees based on what the law says but in their OPINION they were fair because the bank gave an ESTIMATE (which happened to be what the charges were) and the FOS decided that UNDER THE CIRCUMSTANCES they were applied fairly because they are applied when a customer doesn't make a payment (which is obvious anyway).

Based on what the law says, I've taken it to court. Until they provide an actual breakdown of how each charge was calculated for the breach it was applied for, it remains unfair and a penalty to make profit.

Tell me, how are arrears charges different to credit card default charges? Both are applied when a customer doesn't make their due payment.

dunstonh

The FOS didn't assess the arrears fees based on what the law says but in their OPINION they were fair because the bank gave an ESTIMATE (which happened to be what the charges were) and the FOS decided that UNDER THE CIRCUMSTANCES they were applied fairly because they are applied when a customer doesn't make a payment (which is obvious anyway).

The FOS isnt there to take the lenders to court to decide what is legal. It can only apply fairness.

Based on what the law says, I've taken it to court. Until they provide an actual breakdown of how each charge was calculated for the breach it was applied for, it remains unfair and a penalty to make profit.

Actually it is fair until the court decides otherwise.

Hanky_Panky

tifo wrote: »

Tell me, how are arrears charges different to credit card default charges? Both are applied when a customer doesn't make their due payment.

Quite simply the process for dealing with mortgage arrears is a lot more robust and labour intensive than for an unsecured debt.

tifo

dunstonh wrote: »

Actually it is fair until the court decides otherwise.

I'm looking forward to seeing the bank's breakdown of each charge.

HEADACHE

I'm very close to winning about £2,000 in late payment fees against my mortgage lender.It was a sub prime lender & the FO is close to upholding my complaint.It's been a long hard road.

hughmungus_3

In the process of trying to claim back fees of a similar nature. I know this is an old thread but did it conclude for or against the claimant ?