MSE News: Mortgages hikes after Yorkshire/Clydesdale Bank glitch

macca

wow good news indeed FOS is where I'm going next although I am a bit surprised that even without them taking any arrears back my mortgage still needs to go up by £400 a month which is a hard pill to swallow in one gulp.
My one and only letter with the £1k offer is the only offer and appears to be their final one - wonder what their case will be?
Will keep you posted.

globetraveller

Thanks for all the info on this thread. It helped me to word my complaint correctly. Got the phonecall today saying my complaint was going to a panel. We have been asked for £300 more a month. We have apparently underpaid by £5000 but was told we needed a cash payment now of £15000 to make it up.

Dollydebs_2

swblack wrote: »

Hi All

Just received a letter from the Finiancial Ombudsman saying that our case hes been reviewed and the Clydesdale Bank will pay the full sum of £1147.99

:j

I had been offered £150, then £200, and finally £600. We just kept of refusing until we got their final offer, took our case to the FOS and 2 weeks later, all sorted


Just keep at it everyone

:T

just wondered swblack if you have had any word of what your new payments per month will be? - is there any difference in the amount you would have been paying from what you shall be paying minus the shorfall.
congrats anyway thats great news - here's hoping its the same result for us all!

Tuesday6

I've received a letter today from Clydesdale / Yorkshire Bank advising my mortgage payments have been miscalculated...
Apparently I owe them £800 and my mortgage payments will need to increase by £50 per month (from Nov) which is the correct repayment rate and includes a small amount to payback the underpayment.
I had a fixed rate mortgage and it seems the error occurred when my fixed rate ended and they transferred me onto their Flexible Payment Mortgage but I'll find out more when they ring me back.

I decided to ring them and complain but luckily I read this forum first............thanks guys!!

They were very apologetic although I did feel they were playing down their error and ultimately aiming to get me to accept the new payments but I've told them I will genuinely struggle to pay the increased payments.
The outcome is they are sending me a full 'reconstruction of my mortgage account' (payments, interest rates etc) and will ring me back next week to discuss.
I've also requested to raise a complaint with them and most interestingly they offered me £250 compensation there and then..........obviously they are trying to reduce the amount of complaints they have against them so keep the pressure on guys!

I'll keep you posted....

ianho_2

Hi All,

I'm a newbie to all this but desperately trying to find an answer to this issue. We took out an Offset 2 Year Tracker in Jan 2008 at 0.49% above BoE Base reverting to 1.00% above for the remaining term. In Oct 2009 i requested a change of payment date but was told that this couldn't be done because we were behind with our payments, now i'm no specialist but my assumption was if the BoE rate reduces and i continue to pay what they tell me to pay then that's as much their part of the risk as mine would be if the rate went up. I've been down the route of the Ombudsman who has been great but did admit that although everything looked above board to him he was not personally a mortgage specialist.
Initially YB/Clydesdale offered £500 compensation via the Ombudsman for the trouble but said i still had to pay the £2,142 shortfall on the account but when i refused this and said i wanted my account returning to it's original state had the error not been made they agreed to write off the amount in full & final settlement of the issue.
I then received a letter from YB/Clydesdale advising that my payment would change to £665.30 which i then relayed back to the Ombudsman as this was not my understanding of "returning to the original state had the error not been made".
As is said at the top i'm very green considering these issues but my main problem of understanding is that if when the rate was 1.49% i was paying £531.08 and there has been £2,142 written off the account how can they justifiably be now asking me for another £134 a month? If the rates stay as they are for the remaining term this would mean paying an extra £22,000 minimum.
Please feel free to let me know if i'm totally missing something and being totally naive or if not i would be extremely grateful for any idea of how to proceed, at the moment because i don't want the situation to get any worse i'm following the Ombudsman's advice and paying up.

ProudScot

ianho wrote: »

Hi All,

I'm a newbie to all this but desperately trying to find an answer to this issue. We took out an Offset 2 Year Tracker in Jan 2008 at 0.49% above BoE Base reverting to 1.00% above for the remaining term. In Oct 2009 i requested a change of payment date but was told that this couldn't be done because we were behind with our payments, now i'm no specialist but my assumption was if the BoE rate reduces and i continue to pay what they tell me to pay then that's as much their part of the risk as mine would be if the rate went up. I've been down the route of the Ombudsman who has been great but did admit that although everything looked above board to him he was not personally a mortgage specialist.
Initially YB/Clydesdale offered £500 compensation via the Ombudsman for the trouble but said i still had to pay the £2,142 shortfall on the account but when i refused this and said i wanted my account returning to it's original state had the error not been made they agreed to write off the amount in full & final settlement of the issue.
I then received a letter from YB/Clydesdale advising that my payment would change to £665.30 which i then relayed back to the Ombudsman as this was not my understanding of "returning to the original state had the error not been made".
As is said at the top i'm very green considering these issues but my main problem of understanding is that if when the rate was 1.49% i was paying £531.08 and there has been £2,142 written off the account how can they justifiably be now asking me for another £134 a month? If the rates stay as they are for the remaining term this would mean paying an extra £22,000 minimum.
Please feel free to let me know if i'm totally missing something and being totally naive or if not i would be extremely grateful for any idea of how to proceed, at the moment because i don't want the situation to get any worse i'm following the Ombudsman's advice and paying up.

ianho,

First off, congratulations on sticking to your guns and getting past underpayments written off. That's a great result! :j

From this and other threads, it looks as if they are initially offering much smaller compensation payments and then increasing them when they are refused.

Getting the whole shortfall written off is probably the most you can reasonably expect in these circumstances. The ombudsman says: "...our usual approach is to tell the lender to write-off the capital shortfall that has built up, to the date the mistake was sorted out."

It does mean the lender can adjust future payments to what they should have been (excluding the shortfall). In your case, imagine you should have been paying £665.30 at 1.49% ...the fact the bank was only collecting £531.08 (leading to the shortfall) was it's mistake. You've had the difference written off to date but, unfortunately, can't insist you continue paying the lower, incorrect figure going forward.

ianho_2

Thanks ProudScot for you reply,

What i'm now wondering is, if as you say i should have been paying the £665.30 at the time it was 1.49% and bearing in mind that i only started the mortgage in January 2008 and apparently there are problems going back much further than this, is it possible that i have been "missold" this mortgage because presumably all earlier payments i made were wrong to some degree and the mortgage was only 20 months old when the error was discovered?

Clydefail

Got a letter from the Ombudsman service a couple of days ago advising that the full value of the underpayment will be written off.

THe clydesdale dam is surely about to burst on this as more customers win their cases.

Stick to your guns folks and take your complaints to the FOS. Clydesdale probably knew I would win my case but gambled on me caving in to their offer.

Don't give in folks as the full value of your underpayments are likely to be written off.
Our payments will go up to what they should be, and I accept this as part of the deal.

Best of luck resolving your cases.

What annoys me is that had my mum been a customer she is old school and would probably have thanked the clydesdale for letting her know and the offer of £200. The bank know this and are gambling on this to minimise their write-offs. Shocking way to treat customers.

globetraveller

Clydefail wrote: »

Got a letter from the Ombudsman service a couple of days ago advising that the full value of the underpayment will be written off.

THe clydesdale dam is surely about to burst on this as more customers win their cases.

Stick to your guns folks and take your complaints to the FOS. Clydesdale probably knew I would win my case but gambled on me caving in to their offer.

Don't give in folks as the full value of your underpayments are likely to be written off.
Our payments will go up to what they should be, and I accept this as part of the deal.

Best of luck resolving your cases.

What annoys me is that had my mum been a customer she is old school and would probably have thanked the clydesdale for letting her know and the offer of £200. The bank know this and are gambling on this to minimise their write-offs. Shocking way to treat customers.

Great news. Can I ask what they wanted extra each month and what you will actuallly paying now?

Skyerocket_2

Well all, I am cheered by the posts coming through now showing some success via the ombudsman.

My most recent "full and final offer" from the Clydesdale was £1500 on a shortfall of £7.5k.

It was a big gulp when I turned it down and I'm waiting anxiously on the outcome of the ombudsmans deliberations. It's been a few weeks now since I filled out all the required paperwork. How long did you all have to wait for a ruling?

Anyway, will keep you all updated...