Mortgage Exit Fees successes and failures

starnac

DH made a phone call to Halifax and we had none of the paperwork to hand from 2005. They said thy would look into it and we got a cheque for £150 in the post. We had no issues with claiming it back at all

dunstonh

Had an offer of £150 from the Halifax. They say they won't refund the interest because it wasn't a mistake! Personally I think thats rubbish they deliberately took more than they should so they should pay the interest as well. 7 years at 8% on the difference is another £71.

Over to dunstonh

Tough one to call. It want a mistake. It was an FSA decision. The fees were typically not actually written into the contract in most cases which did allow them scope to increase. The FSA was concerned at the scale of the increases. So, it effectively put an end to it (bar some exceptions). So, they are playing it exactly to the letter. The problem with taking it to the FOS is that they are not a consumer champion. They are there to ensure compliance with the rules has taken place. So, if the rules dont say they have to add interest then the FOS wont tell them to add interest. Even if some providers are.

Pug4

:beer:

dunstonh wrote: »

Their response matches the requirements the FSA set out. So, it is fair and accurate. If you dont like it you can go to the FOS and wait 8-18 months for them to decide. They may tell them to add interest but is 8% on £45 really worth that sort of delay and is your time worth it?

aah well, I suppose 45 notes are better than nowt - next time I'm Norfolk way I'll get the coffees in (I'll start saving my stickers!)

busybee100

dunstonh wrote: »

Tough one to call. It want a mistake. It was an FSA decision. The fees were typically not actually written into the contract in most cases which did allow them scope to increase. The FSA was concerned at the scale of the increases. So, it effectively put an end to it (bar some exceptions). So, they are playing it exactly to the letter. The problem with taking it to the FOS is that they are not a consumer champion. They are there to ensure compliance with the rules has taken place. So, if the rules dont say they have to add interest then the FOS wont tell them to add interest. Even if some providers are.

Thank you I knew you'd reply :DI haven't decided yet. DH and DD say take it and I've got 2 others outstanding.

My point would be; If they think it reasonable to pay interest if they had made a mistake then it is only reasonable to expect interest when they did it deliberately.

I'll wait until the other 2 come back and see what mood I'm in.

dunstonh

busybee100 wrote: »

Thank you I knew you'd reply :DI haven't decided yet. DH and DD say take it and I've got 2 others outstanding.

My point would be; If they think it reasonable to pay interest if they had made a mistake then it is only reasonable to expect interest when they did it deliberately.

I'll wait until the other 2 come back and see what mood I'm in.

It's a judgement call. You may get lucky. You may not. I havent seen anything in the FOS publications to suggest either way. You could be the guinea pig.

busybee100

dunstonh wrote: »

It's a judgement call. You may get lucky. You may not. I havent seen anything in the FOS publications to suggest either way. You could be the guinea pig.

Thank you.
I'll keep you posted.:D

MarkyMarkD

The FSA could have said that the banks had to repay interest. They didn't and therefore it's not required.

Miss_Mindstrike

I have submitted my complaint, and to be honest (having worked in financial services) I think I have a strong claim. My argument is that we were fairly much forced into redeeming due to the fact Northern Rock could no longer provide us with the mortgage they sold us due to the banking crisis.

I have received a confirmation of my complaint, and a promise that we will get a response within a certain timescale. I'm holding my breath....we are desperate for the cash!

dunstonh

I have submitted my complaint, and to be honest (having worked in financial services) I think I have a strong claim.

Although having worked in financial services, that can be used against you.

My argument is that we were fairly much forced into redeeming due to the fact Northern Rock could no longer provide us with the mortgage they sold us due to the banking crisis.

That type of complaint is not relevant to this thread which covers a different subject. However, you would not be the first person to make that complaint and the vast majority are not upheld. The FOS has no remit over commercial decisions and the lender is not refusing to give you the mortgage you applied for.

You would have bought a short term deal which then goes onto a variable or tracker rate after that period of time is up and stays that way until the mortgage is repaid. That is what you bought and that is what you have.

Sorry, but you complaint is statistically likely to end in failure as you havent identified any wrongdoing.

Miss_Mindstrike

Hi DunstonH,

Would you please care to expand on your points as I am sorry I don't understand what you are saying?

When I say I worked in FS, I was only ever an administrator and a bank clerk, I have never been an IFA. This certainly did not hinder the PPI claim I made and was successful with (I don't disclose my former occupation as the info that I use is available to anyone who researches, I have had no special training).

I'm sorry, I don't understand your next point. Perhaps you could explain, or maybe I should? I thought this thread was in regard to Mortgage Exit Administration Fees? This is what I am claiming back from Northern Rock. They did not end my mortgage, I ended it as they had informed they would have to end my deal and so I moved to a different mortgage provider. Their administration fee was substantially larger than what I had agreed to in my original paperwork(about £100 more). This is the only grievance I have with them, but I feel it is justified. They dealt with everything else very well.

From what I understand the ruling is that if the MEAF paid is much larger than the MEAF stated at application, then the customer is entitled to ask for the difference back as this is a deviation from the original terms?

Many thanks for your advice, good to get a perspective from someone in the know. MM