NEW Mortgage Exit Fees Discussion

MarkyMarkD

Indeed, to expand on what dunstonh has said, there has not yet been any convincing legal ruling as to the lawfulness or otherwise of bank "penalty" charges. So to extrapolate from something which has not yet been ruled on, to something entirely different, is a bit of a stretch.

simograll

Hi, we tried Martins Militant letter to the Northern Rock, and asked for an explanation or FULL refund with interest. They offered £80 being the difference between the fee paid £175 and the contract amount of £95.

In their rejection letter they state "the FSA has recently concluded a review of DOM fees charged within the industry" and Northern Rock concludes it has adopted the approach that follows the guidance issued by the FSA. Northern Rock are basically saying they cant pay more than the £80 offered as they are following FSA guislines - is this correct? shall i take it further?:money:

MarkyMarkD

There's no legal or moral basis for the militant approach. You agreed to pay the contract amount of £95. If it ever went to court, you wouldn't win.

The militant approach only works, if it ever does, by making the lender pay up because it's not worth the cost of defending your claim.

That's not a reasonable basis to justify making such a claim.

NR are following the FSA guidelines to the letter. The guidelines are reasonable.

JuliaL

Does this also apply to secured loans on the property?

JuliaL

Also forgot to ask if anyone has had problems withe Blemain Finance?

MarkyMarkD

If the lender and the product is regulated by the FSA, then the guidelines apply. If they are not, then the guidelines do not.

Blemain Finance appears to be FSA registered.

smitheim

mainbro wrote: »

Hi Debie, I phoned igroup/G E Money today (3/9/07) and quoted old mortgage Loan Number and asked for refund of Exit Fee, Within 5 minutes I was advised that they would refund £25 to me, within 10 working days.

Like you, I had no details of Exit Fee etc. Apart from the Mortgage Loan number.

Hope you are successful.

Regards

Colin S (mainbro)

Hi, I am also trying to reclaim my exit fee from igroup, we re-mortgaged from them 2 years ago, luckily i still have the paperwork that we signed which does not mention any exit fee, except for the 6 months interest which we paid, but we were also charged £200, I rang them and they tried to fob me off with £23.50 as they said I had signed a 'booklet' agreeing to a £176.50 fee on top of the redemption fee - I will be phoning them again tomorrow as they have not produced evidence of this - I think they are going to be harder than some companies tho, good luck :rolleyes:

MarkyMarkD

Prior to mortgage regulation, fees like MEAFs were often only detailed in booklets or leaflets issued along with your mortgage offer. The main contract will refer to a fee being payable, but normally not specify the amount.

igroup don't honestly need to prove that they sent you this booklet - if the existence of the fee is mentioned in your contract then it was up to you to find out how much the fee was at the time, if it really bothered you.

tiggsy

I phoned the Halifax today regarding a mortgage I had from 1988-2003. I had the mortgage roll number, but they said they had no trace of it. They tried telling me refunds were not for that far back. Is this correct? I thought it would be the date in 2003 that I re-mortgaged that they would go by.

MarkyMarkD

You are either mis-quoting the roll number or they are fobbing you off incorrectly. They MUST have records of a mortgage redeemed as recently as 2003.