Mortgage Exit Fees successes and failures

anaylorefc

Ok, thanks for the help. I was just getting myself muddled up. I'll check my initial deal then and see if it matches.

Thanks.

wendyhouse1968

Hi, I have sent my initial letter to Santander. They responded within a week asking for further details (which they already had in my initial letter) and I sent them on. I received a further letter stating they are unable to find any record of my mortgage (from 1999) and for this reason they are unable to agree my refund request. Has anyone else had this problem? I'm obviously going to chase it up but from reviewing other posts on the forum other lenders have bent over backwards to assist their borrowers.

As an aside, if the FSA deemed the lenders were wrong in overcharging, why did they leave it to the lenders to decide what level of compensation, if any, they should pay?

Many thanks, Wendy

dunstonh

. I received a further letter stating they are unable to find any record of my mortgage (from 1999) and for this reason they are unable to agree my refund request. Has anyone else had this problem?

Its a fair enough reason if you havent supplied a mortgage account number and they cant trace you. Did you supply the correct address for the mortgage (which may not be your current address)? Did you mention the correct mortgage lender name (i.e. Abbey, A&L etc) or just Santander?

As an aside, if the FSA deemed the lenders were wrong in overcharging, why did they leave it to the lenders to decide what level of compensation, if any, they should pay?

Good question and one that has been asked before and no-one can think why that is not the case. My gut feeling is that in the scheme of things, the numbers affected are quite low and the costs of checking what was largely done manually would have been too high. Plus, it is not an issue of law but fairness. i.e. it is the FSA imposing a requirement rather than a legal issue.

wendyhouse1968

Dunston H

Thanks for your prompt reply. I supplied my mortgage account number on both occasions, I am going to send them a copy of my annual mortgage statement.

I was surprised they don't keep a copy of records, I work in a solicitors' office and we have to hold on to residential conveyancing files for at least 16 years.

Will keep you posted.

Wendy

MarkyMarkD

wendyhouse1968 wrote: »

Hi, I have sent my initial letter to Santander. They responded within a week asking for further details (which they already had in my initial letter) and I sent them on. I received a further letter stating they are unable to find any record of my mortgage (from 1999) and for this reason they are unable to agree my refund request. Has anyone else had this problem? I'm obviously going to chase it up but from reviewing other posts on the forum other lenders have bent over backwards to assist their borrowers.

As an aside, if the FSA deemed the lenders were wrong in overcharging, why did they leave it to the lenders to decide what level of compensation, if any, they should pay?

Many thanks, Wendy

Taking your second comment first, the FSA did not leave it to the lenders to decide what level of compensation, if any, they should pay.

The FSA's guidance is 100% clear - lenders should charge the amount originally agreed. Therefore they should refund any amount charged in excess of this.

No "compensation" is due. No interest is due.

Regarding the first issue, legal claims of this type are statute barred after 6 years. Therefore, no lender has to pay back anything in respect of a mortgage redeemed over 6 years ago.

More importantly, most lenders hardly increased the size of their MEAFs until around 2004. So any over-charge in respect of a redemption prior to that date would be small or zero.

Steve_xx

MarkyMarkD wrote: »

No "compensation" is due. No interest is due.

Regarding the first issue, legal claims of this type are statute barred after 6 years. Therefore, no lender has to pay back anything in respect of a mortgage redeemed over 6 years ago.

Why shouldn't a bank pay compensation/interest if it takes monies that it is not entitled to?

Since when did theft beocome 'statute barred' after six years?

MarkyMarkD

It wasn't "theft". Banks charged an MEAF which their Ts & Cs specified could be altered. As far as they were concerned, it was legal and legitimate to increase the MEAF.

The FSA, as regulator, told them that they could not increase MEAFs unless they could demonstrate an increase in costs. Rather than prove an increase in costs, most banks decided to simply repay the difference. The FSA did not demand that they went back in time to find people to repay; nor did it demand that they paid interest.

Civil issues like this are statute barred after six years. Nobody ever said that this was a criminal act. (Except some over-excitable members on this board and similar boards, perhaps).

In any case, as I have pointed out repeatedly, the amounts involved for anyone who redeemed over 6 years ago are very small because lenders didn't increase their rates of charge much before 2004, and any increases before that date were probably cost-related in any case.

wendyhouse1968

I received a further letter stating they are unable to find any record of my mortgage (from 1999) and for this reason they are unable to agree my refund request. Has anyone else had this problem?

To update, I sent a reply to Abbey with a copy of my mortgage statement. I received a response from them today to say they can't find a copy of my original letter of complaint. Back to square one!

MarkyMarkD

How about, "back to leaving it alone as Santander probably don't owe me anything anyway"?

fussey

Having received your email concerning exit fees i used the letter template.
I promptly posted it off to the Cheshire Building Society with whom i had my previous mortgage.
Within the 14 days i had received a letter with cheque enclosed for the disputed amount including interest.
Thank you so much:j