Unfair Redemption Fee

tonydee

Much obliged Ian

p.s For anyone else pursuing this with Abbey they put the redemption charge up on 11th May 2005 from £99 to £225. A nice 125% extra !

tonydee

Scott wrote:

Note: the FOS might be a big stick to hold over the company, but only because it costs more than the original fee if you take it to that level of complaint.

Would this be the case in all FOS cases ? I only ask as I complained to Abbey 2 years ago when we moved house as despite letting them know the change of address they continued to send statements and a new ATM card to my old address.

Subsequently I was constantly messed around when on the phone to them and some months later they offered £50 compensation, I wasn't happy with this as that amount didn't even cover the cost of my calls to them (yes there was that many). It went to FOS who stipulated £125 was a fairer offer.

From what you've stated it would seem silly for Abbey to offer just £50 originally ?

tonydee

tonydee wrote:

Received my first refusal letter this morning, step 2 now being taken. May I ask what a deadlock letter is exactly ?

I've taken Abbey to the FOS before and got more compensation than I bargained for. Heres hoping this one goes the same way.

My update :

Abbey are in the process of sending out a cheque for £225 cheque as full refund

TangentMan

tonydee wrote:

If the £225 cost was justified then everyone would happily pay it

Sorry, but they wouldn't. Look at this forum alone, you see people moaning about ERCs that they signed up to, or Shared Appreciation agreements that they now don't like. You see people with Enowment shortfalls who knew the risks but are jumping onto the endowment bandwagon.

Now, These exit fees are slightly different, in that the justifcation for the lender is not as clear as in the above examples. But in no way can you say that it must be wrong because people are unhappy about it.

In fact the "if we moan we won't have to pay" attitude is heralding the end of free banking in the UK (the end of the cheapest and most sophisticated banking in the world).

tonydee

Tangent, That quote was to do with the sealing payment and nothing else. I believe the recent dramatic increase in these fees are the reason people are unhappy with it. In my case a 125% increase within 2 years with no explanation why.

Of course they'll always be people who complain about anything and everything but with regards this fee I think they have every reason to.