Charge Right Ltd - reclaim money

winstonla

Hi
Im a new poster.
I have googled this but i cant find anything so I am enlisting the help of the good folks on here to stop me making a mistake.

I have had a company called "Charge Right Ltd" ring me a few times.
I spoke to the yesterday and after a 3 minute questionnaire, they "revealed" i am entitled to £32k after being mis-sold my mortgage.

They want £199 for a "no-win no fee" fee :T
Due to my work situation at the time, a mortgage i had in place for a new build (which id put 5% down for) fell through 2 days before the exchange date and if i didnt have a mortgage in place, i'd lose my 5%.
So i literally had 2 days to sort a mortgage out.
I got an interest only £125k mortgage which cost me £700 a month.
5 years later, im still on Interest only having paid around £32k in interest.
To be honest the property is my biggest mistake in life and if i could, id post the keys off and disappear into the sunset.
Ive got quite a decent job now but because of that property, i cant buy myself a house which i could afford.
I am desperate to get out of the property.

Do these companies actually ever do anything or should i just transfer my £199 to the son of a Nigerian prince in exchange for a £5m lottery ticket??
If its the former, how do they get away with it?

thanks for getting this far.
Any help is appreciated.

Steven

Browntoa

send me the £199 , you will at least get the satisfaction that I will make good use of the money

otherwise , will they be around to repay the £199

edit , they do have a valid MOJ registration

winstonla

sorry what is MOJ?

_Andy_

Are you saying you didn't want an IO mortgage? In which case why did you choose that and why didn't you change to repayment?
I'm struggling to see why you're hard done by here

BoGoF

Let's be honest, you were desperate and would have signed up to anything. You would have been better losing your deposit. Why can't you sell up now, sounds like you should cut your losses and move on.

GMS

Run a mile.

How can a 'No win no fee' company charge a fee of £199?

dunstonh

They want £199 for a "no-win no fee" fee

Goodbye £199.

If its the former, how do they get away with it?

The MoJ is a very weak regulator. However, it is shutting down companies all the time but they can often get away with a couple of years mis-selling their service before the MoJ gets enough complaints to shut them down.

I spoke to the yesterday and after a 3 minute questionnaire, they "revealed" i am entitled to £32k after being mis-sold my mortgage.

How was it mis-sold?

No doubt they have given rubbish about brokers fees or mortgage fees being added to the mortgage (which is allowed but is a common reason given by dodgy companies) or that you didnt know you had to pay the mortgage back at the end (duh! - what about all the risk warnings that given to you in print).

The bottom line is that any financial product can be mis-sold but some of the reasons given by these companies are complete BS. They can take £199 off you, put a complaint in (or in some cases with claims companies it never got that far - thinking of Cartel and Kerobo there - both failed after taking up front money). Then you hear nothing for a year or so. You chase up a few times and next thing you know the company has gone under and taken your £199 with it.

Tell us what the mis-sale excuses you were given and we will tell you if they are valid complaint reasons or not.

TimeForAction

This claims Company are using the following as a basis for re-claiming mortgage payments or so they say

Compensation for Mis-Sold Mortgages
The financial services sector is awash with scandals about the mis-selling of various products, from payment protection insurance policies to investments, pensions and endowment policies. One of the latest scandals to hit the headlines is mortgage mis-selling. This occurs where a mortgage adviser arranges a mortgage in contravention of Financial Services Authority regulations on the advising and selling on mortgage products, resulting in the consumer taking out a mortgage which is unsuitable for their needs.

The development of this area of law stems from a case in 2009 where the claimant was mis-sold a mortgage with a low initial rate which increased substantially after the introductory period had ended. As a result, the claimant was unable to meet his mortgage repayments and his home was repossessed. He complained to the mortgage adviser who sold him the mortgage and when he was unable to resolve the complaint, he brought the case to the Financial Ombudsman Service. The FOS decided that the mortgage adviser had breached the FSA guidelines on selling mortgages and that he was therefore responsible for any loss or damage which the claimant had suffered. The mortgage adviser was ordered to pay £50,000 in compensation, which is the maximum compensation which the FOS can award.

Since the 2009 case mentioned above, the area has not grown substantially and there have been no reports of similar awards being made by the FOS. Partially this is due to the Financial Ombudsman Service expressing doubt as to whether it has the jurisdiction to decide these cases and not wanting to open the floodgates to a huge caseload of claims by making new law in this area. However, this has the potential to be a huge claim area, and if a test case were brought in the County Court, the FOS might be more willing to take a proactive approach.

What they are claiming is there were secret commissions, selling of an inappropriate product etc ...

kingstreet

No-one needs these firms.

If you have a genuine complaint, write to the firm giving the advice and tell them what you think they did wrong. They have a set time to respond and ultimately the FOS will decide on the outcome if the adviser is unable to resolve the matter to the complainant's satisfaction.

Under no circumstances should anyone pay a fee to one of these outfits.

dunstonh

What they are claiming is there were secret commissions

one successful court case on that front and in that case it was because the broker was an independent and took fee and commission and failed to disclose the commission. Had they been fee only or commission only or had disclosed the commission then it would not have been successful. In that case, the court ordered the commission to be rebated to the client. It was about £200 from memory.

selling of an inappropriate product

That doesnt need a claims company. Its fairly easy to spot and the FOS will rule on that if required.

The development of this area of law stems from a case in 2009 where the claimant was mis-sold a mortgage with a low initial rate which increased substantially after the introductory period had ended. As a result, the claimant was unable to meet his mortgage repayments and his home was repossessed. He complained to the mortgage adviser who sold him the mortgage and when he was unable to resolve the complaint, he brought the case to the Financial Ombudsman Service. The FOS decided that the mortgage adviser had breached the FSA guidelines on selling mortgages and that he was therefore responsible for any loss or damage which the claimant had suffered. The mortgage adviser was ordered to pay £50,000 in compensation, which is the maximum compensation which the FOS can award.

There is obviously nothing wrong with the mortgage in that case and the only reason the FOS would uphold that case is if the mortgage adviser had failed in a number of areas regarding advice.

Whilst any product can be mis-sold, the stats show that it is still a very small minority with mortgages. That is almost certainly why the floodgates have not opened. We hear of periodic cases but nothing widespread.

Court action is less likely as the FOS is generally more consumer friendly. The courts require the complainant to prove a wrong doing whereas the FOS requires the firm to prove no wrong doing.

IMO, it is actually quite hard to mis-sell a mortgage unless you are doing it on purpose. In which case, it is easy to identify and it is within the jurisdiction of the FOS in most cases.

handytips

Same old story here, a client crying foul of the mortgage he needed at the time so that he could get the property, then a CMC comes along and spins him a load of old rubbish, and all of a sudden the client has convinced himself that he has been mis sold a mortgage that they SIGNED for. This kind of thing makes me sick, and it just goes to show how fickle the public can be. Send then your £199 why not and drop some poor soul in it because of you have been told by some call centre op that you are entitled to £32k. If i received this complaint on my doorstep, the CMC would be getting a barristers letter to counter sue its client. Tit for Tat. If someone has genuinely been mis sold something fair enough, however the above scenario takes the biscuit.