Unable to pay mortgage payments (Charges)

Pennyless_&_Broke

Due to unfair bank charges (which I am now reclaiming ). I was in a position where I was unable to meet my monthly mortgage payments , for each of these I was charged an administration fee of £30.00. Because of problems with the bank I cancelled my direct debit I was then charged a non payment by direct debit fee of £15.00 per month. Does anyone or has anyone reclaimed these charges under the law of penalties as Stated

The charges applied are an unfair penalty under the Unfair Terms in Consumer Contracts Regulations, which state: “A term is unfair if it requires any consumer who fails his obligation to pay a disproportionately high sum in compensation”. The amount charged does not reflect the cost of the breach.

Under the law of penalties, the charges are an unlawful ‘extravagant’ penalty. A charge is a penalty if it does not reflect an item’s true cost.

You help would be very much appreciated


Pennyless and Broke

toonfish

sorry, but what do you expect - a free house?

Hillfly

toonfish wrote: »

sorry, but what do you expect - a free house?

No they probably expect some friendly comments and advice from those with experience in the matter (which I do not have) and also for their bank not to unlawfully charge them when difficult times arise.

Welcome 'Pennyless & Broke'. Someone will advise you about this i'm sure.

Mr_helpful

Im struggling to see why its unfair. Did you pay what you could of the Mortgage? Did you negotiate with the lender. What was the true reason you dint have enough money for the mortgage. You wouldnt get the charges in the first place without being overdrawn or missing payments

Pennyless_&_Broke

toonfish wrote: »

sorry, but what do you expect - a free house?

No I dont expect a free house. I was only asking if the £45 charges I was recieveing per month could be claimed back the same as bank charges. Why be so rude?

toonfish

Pennyless_&_Broke wrote: »

No I dont expect a free house. I was only asking if the £45 charges I was recieveing per month could be claimed back the same as bank charges. Why be so rude?

sorry, didn't mean to be so abrupt but I don't think £15 for someone having to manually process your mortgage payment every month is unreasonable.

dunstonh

If you successfully claim the bank charges back and the bank closes your account (which many do), with your credit problems, you could find yourself without a bank account. In which case, you will have to make manual payments and could end up paying more in manual payment fees than you got back on bank charges.

A manual payment fee is not a penalty. It is a fee for choosing a particular service.

Andy_L

The £30 admin fee is arguably an unfair penalty cgarge like your bank charges. The £15 for not paying by direct debit is not.

Leon_W

It is not illegal for anyone to charge you more for different payment methods. Here I'm talking exclusively about the £15 charged for not paying by DD.

BT charge more if you pay quarterly and don't pay by direct debit, and don't start me off about all the different add ons that the airlines and travel industry charge because your using this card or that !!

HelFl

I am in a similar situation as you pennyless & broke. I sent a letter to my mortgage company asking for a refund of the £207 they had charged me in the past - I felt it was the same as for the bank charges - and my mortgage was with a bank so I decided to go for it! I have had a very explicit (& nice)letter back from the mortgage company/bank saying that the mortgage fees are not the same as the bank charges, and therefore they will not repay them. I am not so convinced of this as the letter isn't really any different from the ones that I have received from the credit card companies that I've written to - yet I can claim from them - so I am not that convinced!
Sorry I am not being that helpful - but like you I would like to know if I can claim the charges