Bank mortgage error

jangor_2

Three years ago I took out a two year fixed rate mortgage (4.99%). At the end of the two years I was offered a continuation with a further two year fixed rate (again at 4.99%) as from 31st January 2006. I completed the short form and returned same to the Woolwich. In February 2006 I queried with my local branch whether the new fixed rate had been entered on their system and was assured that everything was correct. Unfortunately I then forgot about it. Last September, on checking my statements, I realised my payments were much higher than they should be. On contacting the Woolwich, I was advised my mortgage was now on a variable rate. Following my insistence the Head Office checked and found my completed form and admitted, in several letters, that this was their error but said it was now too late and I would have to accept another fixed rate package (albeit they would waive any charges as a "goodwill gesture"). Letters went to and fro for several weeks and eventually I contacted the Banking Ombudsman who has twice written to me advising they are so busy that it will be another month before they can deal with my complaint. I am now very concerned as the Woolwich advised if I did not accept a new package in twelve weeks, as far as they were concerned the matter would be closed. Please can you advise, I am now really concerned.

1jim

I dont think that they can say that you have to have things sorted in 12 weeks or they will consdier the matter closed,,,,, the matter is closed when you say it it..... I would write to the cheif exec and point out your displeasure at being financially disadvantaged because of their error and that you would expect them to put this write but seeing as the woolwich accepts its to blame but have said that they wont rectify things you have had no choice but to go to the FSA with your complaint and that the matter will be closed when you and the FSA say it will!!!! I find that letters to the cheif execs office work much better than sending them to the customer service centre (an example of which was when our entire streets broadband kept being cut off and this went on for mths with BT not doing anything about it, one email on friday night to the cheif exec resulted in a team of engineers coming out on bank holiday monday and fixing it)
good luck with it
Jim

dunstonh

The FSA do not deal with complaints so writing to them is pointless. They will just send your letter back to the provider for them to deal with.

danjberry

have you spoken to the woolwich rather then writing letters as this is wasting more time. have they refunded the additional money they took from you for the last year on their variable rate? also when you call them say you kept your side of the agreement and signed and returned the letter and it is all their fault that the interest rate is wrong and insist they have this changed, why should you be put out financially when it is their incompetence?

jangor_2

Thankyou. Yes I have contacted them by phone on many occasions. I have been shunted to various departments until I ended up back where I started. I have emailed and sent many letters. They have not refunded the overpayments. Although they admit to their error and to not entering me into the correct fixed rate scheme, they insist they cannot return me to the position I should have been in from January 2006 and they insist I must take out a totally new fixed rate package. I have tried repeatedly to explain that it is their error not mine and I should not suffer financially. Eventually I rang the department they advised and even the manager there said I should be returned to the correct interest rate. He promised to deal with this, I did not hear, rang again and was advised my complaint had not been logged. I went through the complete history again but was told nothing doing, I must apply for a new package. Since then I have been told that if I do not accept in 12 weeks, they will consider my complaint at an end and if I do not accept a new fixed rate package I will have to accept whatever is the latest increased fixed rate. I am horrified and very upset. I await the Ombudsman but they seem to be impossibly busy.

MarkyMarkD

If you have written confirmation from the Woolwich that it is their error and that you had validly applied for the fixed rate product you say you have, then they haven't got a leg to stand on.

Irrespective of how long it takes to get things sorted out, you should be put onto the correct fixed rate with the correct end date (i.e. backdated to when the switch should have happened) and accordingly have the relevant amounts deducted from your mortgage account.

Assuming that you can afford the amounts they are collecting from your bank account on a monthly basis, I wouldn't get worried about the delay - they will end up compensating you (either because they wake up and understand the problem, or because the Ombudsman deals with it).

As you say you have logged the complaint with the Ombudsman, I am assuming that you have a letter from Woolwich saying that they are not prepared to take the matter any further (a deadlock letter)? The Ombudsman won't deal with a complaint unless you've exhausted the lender's own complaints procedure.

Rick62

This is absolutely dreadful of the Woolwich, from what you say they are clearly at fault and if you keep with the appeals process and Financial Ombudsman, as MarkyMark and others suggest I would hope you will be successful.

All I want to add, is if or when you have any sort of meaningful (particularly positive) conversation (such as with the manager who agreed it should be corrected) always make a note of their name, contact details, position.

Then try and keep speaking to that person, or at least you can quote 'MR Jones, head of customer relations South East District said etc etc'. Apart from anything otherwise you keep dealing with different people of different abilities and levels of understanding and often it is not so much that they all think you souldn't be sorted out, but just that they don't have the authority or can't be bothered to sort it out.

jangor_2

Thankyou all for your helpful advice, I have been getting rather upset recently about the whole matter. The Woolwich confirmed that they had received my written acceptance in October 2005, both my one of their staff members and by letter, of the new two year fixed rate but advised that unfortunately the incorrect code had been entered into their computer system which had caused the error. They have sent me a final letter advising they are not prepared to consider my proposal that I should be returned to the correct interest rate as from Jan 2006. As mentioned, they were insistent I would need to accept a new package and that if I failed to do this quickly, as interest rates were rising, I would lose out by paying a higher interest rate than at the time they contacted me, which I think then was about 5.2%. I have been trying very hard to keep a note of all the names and dates of my calls but must admit I have been getting a little confused as passed from pillar to post. I am cheered that as my complaint has been logged with the Ombudsman the time delay will not matter. It is a struggle at present paying at the higher rate but I suppose I must just wait until an adjudicator has been appointed to my case. I do feel very aggrieved by their totally intransigent view.

MarkyMarkD

I also don't understand why they won't sort things out - it seems pretty clear that it's their error and yet they are being obstructive in resolving the problem.

There is absolutely no point in them allowing this case to go to the Ombudsman, as it costs them money to do so. If it's clear they are in the wrong, any bank/building society with nous would settle up at this stage.

Coupon-mad

MarkyMarkD wrote:

As you say you have logged the complaint with the Ombudsman, I am assuming that you have a letter from Woolwich saying that they are not prepared to take the matter any further (a deadlock letter)? The Ombudsman won't deal with a complaint unless you've exhausted the lender's own complaints procedure.[/QUOTE]


I believe I read somewhere recently that this bit (in bold) is no longer the case? Not sure where I read it though as I am no longer working in the Mortgage sector - I think it may have been on an updated leaflet from my own Bank when I made a recent complaint.

If there is no need to actually reach a deadlock situation before the Ombudsman will get involved, this might partly explain why that office is so busy! Good luck to the OP, I am sure the wait will be worthwhile as the Ombudsman should certainly find in your favour IMHO and you should be put in the position you would have been in if the Woolwich had not made the error.

Please post again and let us know the outcome when it happens!

MarkyMarkD

The FOS say:

The ombudsman service can get involved if:

* the business has sent you its final response to your complaint but you remain unhappy or
* the business has had at least 8 weeks but has still not sent you its final response - and you are not prepared to wait any longer.

Occasionally a business may be allowed more time to deal with your complaint. If so, we will tell you.

If you are having difficulty contacting the business, or are unsure what to do next, get in touch with us - we may be able to help.

So you still have to either reach deadlock or get to a stage where the institution is delaying given you a final response.

What counts as "final response" is a bit vague, too - most letter institutions send out will say something like "unless you are unhappy with this, we'll close our file in xxx weeks" which I suppose should count as a final response.