Huge interest on Arrears and admin fee!!

clintus2

Good Afternoon, back in March 2006 my partner unfortunatley missed a mortgage payment with GE Money and following a brief court case was awarded a £100 per month agreement with them to pay off the £2,261.90 over 3 years. This also included a suspended repossesion order.
she now finds herself in a better position and has just called GE Money to pay off the arrears which show as £1,242.97 only to be informed that to enable the suspended repossesion order to be removed the total including interest to pay is £2,808.91

This is clearly a ridiculous amount of money and I was wondering if this could a/ be correct/ b/ be legal.

she is also payin £40 per month in admin fees!!!!!!

MarkyMarkD

Clintus

You don't get taken to court for missing one mortgage payment.

The amount due will include the accumulated arrears plus the lender's legal costs and fees associated with the account being in serious arrears.

If she was £2,260+ in arrears, and then legal fees were added on, it isn't impossible that she still owes £2,800 - you say she's been paying £100 a month, and it's only 11 months since the court case, and £40 a month of this has been to meet arrears admin fees.

Perhaps you could clarify the source of some of the figures in your original post?

clintus2

ah my mistake 2 months in arrears. mentioning the court fees etc has given some light, its a shame i had to ask this on here, would have been easier if GE had actually told her instead of showing the arrears as the smaller figure.
she has sent a cheque for the "arrears" but they will have to wait for the charges etc.
Thanks for your response.

MarkyMarkD

You are very welcome.