mortgage co say charges are not illegal yet!

MortgageMamma

Tootsie_Roll wrote: »

I can tell you with absolute certainty that a mortgage arrears charge of £50 per month will not come anywhere near to covering the actual cost of managing your account during that 20 month period. I really hope the bank actually make an effort to defend this type of action which is just another case of trying to get something for nothing as mentioned by MortgageMamma.

What do people think is going to happen within lending institutions if this sort of claim continues to be made? Every time somethings sent to the FOS for investigation there is a charge of around £350, its costly and time consuming for the banks to administer the claim itself, then court costs if applicable, then they have to pay it back with interest

If this sort of theft, (and thats what it is in the majority of cases) continues In 2 years time come back to these forums and see the same old whinging tight !!!!!! complaining because there are upfront and monthly fee's for everything from applying for a credit card to opening a bank account.

It is not possible to reduce and organisations profit margins using these tactics no matter how many people do it. The organisations concerned will simply amend their products, charging structures and policies to defend themselves against compensation vultures, and it will in the long term change the nature of UK financial services and maybe not for the better!

Better the devil you know!

absolutebounder

good people subsidise these people in arrears. The lenders put aside millions to cover bad debtors. The we hear all this whinging about the fees which means if fees are given back we are subsidising them again. ~Pity they dont default on the sky TV or give up the fags

millsy1980

SONIA79 wrote: »

it is not a bank.

And your point is????

MortgageMamma

It must be ok then if its not a bank

Polovski

I only ask that charges made to me, whether it be by banks, mortgage companies, credit cards etc are in proportion to the costs incurred by them. £30 for bouncing a direct debit (in my case) because of an online banking error is unreasonable.

Some people on here seem to have a real bee in their bonnet that so many people have found out about the unlawfulness of charges - i can't really understand why??? If banks etc charged a reasonable amount in the first place then they wouldn't have left themselves open to this.

dunstonh

Some people on here seem to have a real bee in their bonnet that so many people have found out about the unlawfulness of charges - i can't really understand why??? If banks etc charged a reasonable amount in the first place then they wouldn't have left themselves open to this.

I think you will find that the negative position is towards the freeloaders that bounce their cheques, dont pay their bills and expect those of us who do not abuse the services of the bank/lenders to pick up their tab.

There is going to be consequences to all this and it will mean the end of free banking for the majority and higher interest rates or higher initial charges on lending.

Back in my banking days, there were three account managers assigned to unauthorised borrowing and two clerks who only dealt with bounced/returned items. Thats 5 staff out of 40 dealing with unauthorised borrowing. Tot up their salaries and the costs and you soon release that £25 isnt that far off. Anyway, thats drifting off topic.

david29dpo

i do agree with the short-sightedness of this. banks and the like are going to do something about this soon, its happening now. one bank is thinking of going back to charging for current accounts. once one starts, thats it.

Mr_helpful

david29dpo wrote: »

i do agree with the short-sightedness of this. banks and the like are going to do something about this soon, its happening now. one bank is thinking of going back to charging for current accounts. once one starts, thats it.

Agree totally. The minority of people who cant keep their side of the bargain and then whinge are costing the others dear and missing one point. The lenders have the money they dont so the lenders make the rules.
I have seen a lot of people with arrears. Every single one had a TV many had SKY. All bar one couple had at least one moker who hadnt given up. All were using cars when many lived in walking distance of work. I think the largest single reason for arrears is attitude. People dont give up the luxuries to pay for the roof over their head

kenshaz

Reclaim six years' unfair bank charges: Read the full Bank Charge Reclaiming Guide

The above is what Martin thinks and what this site is all about,not those within the industry,the present and past financial workers.It is all about. the consumer
THE ORIGINAL poster was off track about her arrears ,but entitled to ask about exit fee reimbursement ,but for some reason the financial workers decided to band together and bring into the discussion bank charges ,which have been proved unlawful and some have reclaimed their rightfdul refund as advocated by Martin.

kenshaz

dunstonh wrote: »

I think you will find that the negative position is towards the freeloaders that bounce their cheques, dont pay their bills and expect those of us who do not abuse the services of the bank/lenders to pick up their tab.

There is going to be consequences to all this and it will mean the end of free banking for the majority and higher interest rates or higher initial charges on lending.

Back in my banking days, there were three account managers assigned to unauthorised borrowing and two clerks who only dealt with bounced/returned items. Thats 5 staff out of 40 dealing with unauthorised borrowing. Tot up their salaries and the costs and you soon release that £25 isnt that far off. Anyway, thats drifting off topic.

Please explain the connection between the original post and the comments of Dunstonh,he has moved from a poster having arrears and exit fees to free loaders ,bounced cheques ,unpaid bills,and how this will take away free banking.