Discharge fee, settlement fee etc.

malcindebt

I've just had a settlement figure through from a secured loan I have with GE Money, and they are charging £200 for a discharge of security fee, and £95 as an early settlement fee.

Just out of interest, are either of these challengeable as being unlafully disproportionate?

TMF

I think it would be down to if it is stated in the contract. Look over your contract and it shoudl state somthing about early settlement. If it is in there I dont think you can do much about it.

malcindebt

Just had a look through the contarct I signed and the t&c's on the back, it does not mention anything about a discharge of security fee. All it says is:

4 (2) The customer may settle this agreement at any tie giving GEMHF written notice of their intention to do so and by paying the balance outstanding , plus a fee equal to one months interest on the balance outstanding on the day immediately before settlement.

I presume the £95 is the 1 months interest.

But definately no mention of the discherge fee.

malcindebt

bump*******

jonesMUFCforever

It will certainly not cost GE Money £200 to stamp a document to remove its mortgage.
See the Land Registry website for the up to date charges and then see what you think is fair.

malcindebt

Had a look at the land registry website.

Not sure what I'm looking for but I did find this.

http://www.landregistry.gov.uk/assets/library/documents/rrgreg.pdf

Please can someone advise if on page 4 item 4, is the right thing i sould be looking at.

Or am I way off?

jonesMUFCforever

Looks like £40 is the standard fee. Add a little for GE Money's clerical work and sending discharged mortgage form either to you or the first mortgage holder.
If they suggested £75, I would be inclined to pay; anything over I would be complaining unless they can prove that the charges were there at the outset.

malcindebt

can you advise where you see that, I don't really understand the form that advise of the fees.

jonesMUFCforever

Most of the standard fees seem to start at £40.
Basically when you pay off GE money they will send one form off to Land registry to tell them to delete their charge on your property.
It is not complicated at all even a trained monkey could do it.

malcindebt

Just been back on the site, and done the charge calculator.

To discharge a registered charge it says there is no fee. That means almost £200 pure profit for GE.

jonesMUFCforever

Well in that case complain!