Nationwide charging 2k for paperwork!

TrueEagle

Hi, I wonder if anyone can help. My sister recently received her annual mortgage statement from Nationwide and discovered two charges of £999. These charges relate to a time when she was considering switching from a variable to fixed rate mortgage. She spoke to Nationwide over the telephone, both times, and they sent her the paperwork out to complete. They advised her the only charge associated with this would be if she accepted the change by signing and returning the paperwork. Both times she received the paperwork but in the end decided not to complete it, as she didn't want to go ahead with the change to a fixed rate. Nationwide now say she is still liable for the charges because she made the enquiry. Any advice or ideas? This happened to anyone else? Cheers.

brightgirl

If she was told at both stages that she will be charged some type of advisory fee then yes you`ll have to pay it, otherwise write a letter of complaint and keep a catalogue of events (ie 20/01/12 Spoke to xyz about charges).

I think the bank is just chancing their luck from what you`ve said. Even contact them again and get the operators name, ask them to define what the charge is for and ask them for the complaints procedure. It might save you writing if they can resolve it over the phone. (Nightmare)

opinions4u

They advised her the only charge associated with this would be if she accepted the change by signing and returning the paperwork.

Complain and ask them to reimburse the fees based on this statement. Ask them for a transcript of the phone calls if they refuse.

Additionally, what does the paperwork actually say about fees?

I think the bank is just chancing their luck

I doubt it. They are either charging the fees as agreed and documented or somebody's made a mistake.

Their reputation would be blown out of the water if they had a policy of charging fees that they're not entitled to.

Dave_Ham

Something does not stack up.

I have never heard of Nationwide charging advice fees, I would asume these were supposed to be product fees?

I would trot down the local branch and confident they will resolve this satisfactorily.

Good luck and please do let us know the outcome...

Thrugelmir

TrueEagle wrote: »

My sister recently received her annual mortgage statement from Nationwide and discovered two charges of £999.

Were both charges levied within a 12 month period?

TrueEagle

Thanks for all the replies! Sounds like there may be some hope I'm visiting her on Saturday so I'll share this with her then. I don't have access to her paperwork yet but I'll check that too. She says the charges appeared in Jan 11 and May 11 and the wording next to them was something like 'product reservation fee' or 'product arrangement fee'. Both times she specifically asked if there were any fees associated with getting the paperwork sent out to her, and they assured her there were none. I don't think she should be charged 2k just for sending out paperwork - she should only be charged if she signed and returned the paperwork thus accepting the terms....right?

Thrugelmir

TrueEagle wrote: »

she should only be charged if she signed and returned the paperwork thus accepting the terms....right?[/SIZE][/FONT]

No. A reservation fee is just as it sounds, non-refundable. As the specific funds would have been allocated to her. Irrespective of whether if she follows through.

Lenders will allocate tranches of money to specific products. Once taken up they'll issue a new tranche often at different terms or maturity date.

The fee is make the borrower accept the commitment and not change their minds, i.e. look for a better rate.

The_J

On the plus side, Nationwide reservation fees are usually only £99...

TrueEagle

Hmm right ok, that makes sense. Thanks. Think I need to go through this with her and check exactly what she's been charged for etc.

Thrugelmir

TrueEagle wrote: »

Think I need to go through this with her and check exactly what she's been charged for etc.

Check the correspondence that was sent. Was there a date whereby she could have notified them and declined the product offered. A cooling off period so to speak.

That would seem reasonable and fit in with the no fee charge comment.

TrueEagle

Hi all just an update as promised. I wrote to Nationwide on behalf of my sister in the end. They agreed to refund all the charges plus interest. Thanks for all your comments.