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need advice pls over morgage comp adding ins without knowledge

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Hi guys
Received my annual morg statement the other month and as going through it noticed that they had added a charge - looking closer they have automatically added buildings ins on without me knowing,it turns out they have added it for the previous year too, I have always taken this out myself so have been insuranced twice, I never noticed the increase in the payments it was approx £50pm extra because they just send a letter when the rates change saying in has increased by for example base rate +1.81% and never the actual monthly amount so I presumed it was the interest rate changing. I contacted them about this and they say it was because I never sent in copy of my building ins (I did used to have to do this but in the last 3 yrs they have sold the company to someone else and then changed their names so I may have received a letter but not sure but I definitively have never ever received a copy of the insurance schedule of them for either yr). I e mailed them copies of my past insurance schedules and payment info to prove I have been covered throughout and they have decided to only refund 100% of this years and only 50% of the previous year and then charge a £50 cancellation fee, they have wrote out to me with this info and also with a "copy of the letter supposedly sent to me" they also sent what was meant to be the terms of mortgage offer stating that it is required to send a copy in each year - this letter was set up like it was sent to my old address before the mortgage was finalized and we moved so was addressed there but the name was my married name and I was not even married at the timewhen I took this mortgage out so they have forged this document - I am taking this further with the ombudsman - but can anyone direct my in the best way to handle this and what I need to state - thanks in advance guys

Comments

  • ACG
    ACG Posts: 24,606 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    If the Financial Ombudsman is investigating then let them deal with it.

    They will guide you as to what they need from you.

    You could argue this from both sides, you were supposed to tell them of your insurance but didnt. So theoretically they would have paid out had you made a claim. But you never knew (or so you say - from their point of view), so you would never have made a claim and can prove you had cover elsewhere.

    I would be inclined to say the ombudsman will probably agree with you. But im just guessing as it sounds like the right thing to do.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • angeleyes
    angeleyes Posts: 308 Forumite
    i havent made the complaint to them yet, i am unsure of the best way to go about it all - thanks
  • ACG
    ACG Posts: 24,606 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    The way it is meant to go is...
    Speak to the bank/mortgage company.
    If unhappy write a letter of complaint.
    They will usually write back with a final response (within around 4 weeks).
    If your not happy then you write/call the financial ombudsman.

    However, if you call the mortgage company they will confirm their complaints process if you dont have it in any of your paperwork.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • dunstonh
    dunstonh Posts: 119,764 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    this letter was set up like it was sent to my old address before the mortgage was finalized and we moved so was addressed there but the name was my married name and I was not even married at the timewhen I took this mortgage out so they have forged this document

    Not necessarily. I have seen some of the sorts of software in use with these things and they keep the letter content on file but if you ask to generate a copy of it, it takes the current salutation they have saved.

    it is best not to make accusations of fraud unless you can prove it.

    Some lenders insist on being noted on your policy and some require you to notify them of changes. If you fail to be notified they will often put you on their bulk policy and charge you. However, for that to happen, you normally get a few warnings.

    Typically, with dual insurance, the process is that both providers will agree between them who refunds what. A cancellation charge is not uncommon but you would expect back either a full refund on one or something like 50% of each. Given that their response doesnt match that, you should escalate it to a complaint. A 100% refund (or 50/50 from both) with a cancellation charge would be the outcome you should be aiming for.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • dunstonh wrote: »
    Not necessarily. I have seen some of the sorts of software in use with these things and they keep the letter content on file but if you ask to generate a copy of it, it takes the current salutation they have saved.

    thanks for your response i am just confused over why they have stated it was
    - addressed to my previous address with my maiden name and state it was a copy when all the other "copy letters" where addressed to me at my current mortgaged address with my married name and has been for 4 yrs - which is totally inaccurate


    does anyone know if they the company actually get any penalties when complaints are filed against them
    xxx
  • angeleyes
    angeleyes Posts: 308 Forumite
    bump :beer:
  • norbet
    norbet Posts: 134 Forumite
    angeleyes wrote: »

    does anyone know if they the company actually get any penalties when complaints are filed against them
    xxx

    AFAIK - FSA regulated companies have to report complaints to the FSA(can't be sure but I think it's just an annual report on volumes rather than specifics, but this may differ from firm to firm). If there are a sufficient number of complaints the FSA will usually investigate further. If the FSA deems it necessary then yes, financial penalties can apply for regulartory failures.

    It's also worth bearing in mind. If the complaint is not resolved within your lenders complaints process and is then referred to the Ombudsman then, yes it's lilkey that it'll cost them as the Ombudsman will most likely charge them for the investigation (whether it's found in your favour or not).
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