Arrears charges - letters, phone calls etc

inmypocketnottheirs

Cute_n_Quirky wrote: »

This is not true.

The OP knew when taking out the mortgage that there would be a financial penalty attached to going into arrears.

The Lender would send a letter to the OP as soon as the arrears began which would remind the OP of the charges and would offer to meet with them to come to an arrangement to rectify the situation.

If the OP were to seek recompense through a Court of Law it is doubtful that they would win their case since they knew of the penalties and the charges when signing for the original loan.

The simple answer to this is to pay the mortgage on time.

I would suggest you learn a little more about punitive fines and then comment.

inmypocketnottheirs

spurs_nut wrote: »

Think of the worst case scenario.

He asks for the charges back.

They say no

He takes them to court

They agree

He loses

He had to pay court costs as well as all arrears. He can't afford to.

Halifax reposses the house. adding outstanding debt into an unsecured loan.

Hmmmmmm Good enough reason to overlook reclaiming these charges and concentrate on getting the arrears sorted first me thinks.

I would advise you to also research punitive fines.

Noz

inmypocketnottheirs wrote: »

I would suggest you learn a little more about punitive fines and then comment.

The lines are a bit more blurred when it comes to mortgages, not as clear cut

inmypocketnottheirs

For the record:

Punitive fees are in fact not enforceable in English law. The basis of these charges are as a financial penalty, because they do not relate to any work involved, or any extra work involved regarding returned or unpaid items. They are not liquidated damages, i.e. the actual cost incurred by the bank, neither are they a forecast or pre-estimate of costs or losses. Simply they are punitive charges and nothing more than a lucrative money making scheme. There are numerous cases where courts have found in favour of the claimant where punitive charges are involved. Murray v Leasureplay (2004) Dunlop Tyre Company v New Garage and Motor Co. (1915) Bridge v. Campbell Discount Co. Ltd. (1962) There are many more cases of this type - far more than I have room to list here. Furthermore it must be stated here that these charges are a direct infringement of the 1999 Consumer Credit Act, where the Unfair Terms in Contracts clause is concerned.

inmypocketnottheirs

Noz wrote: »

The lines are a bit more blurred when it comes to mortgages, not as clear cut

No, the situation is exactly the same. Punitive fines are unlawful, regardless of why they have been applied. The law does not cater differently for mortgages. The fact is it is not enforceable to profit from a breach of contract. The only entitlement is to cover the cost of the actual breach, not to profit.

It costs no more to send out a letter and charge £35 for mortgage arrears than it does to charge £35 to send a letter for exceeding the overdraft limit, for example.

spurs_nut

inmypocketnottheirs wrote: »

No, the situation is exactly the same. Punitive fines are unlawful, regardless of why they have been applied. The law does not cater differently for mortgages. The fact is it is not enforceable to profit from a breach of contract. The only entitlement is to cover the cost of the actual breach, not to profit.

It costs no more to send out a letter and charge £35 for mortgage arrears than it does to charge £35 to send a letter for exceeding the overdraft limit, for example.

Rubbish!

When you go overdrawn it's an automated letter. Doesn't warrant a £35 charge.

However, missing a mortgage payment is a totally different story and I wouldn't be surprised if they could back up why it costs £35 each time they miss a payment.

Anyway, you are missing the point. The op is in arrears so the best thing to do would be to sort that problem out first. Not take on a new bucket load of other issues.

And those court cases, never even heard of those companies before. Your telling me missing a monthly payment on car finance is the same as missing a payment on a mortgage?

Get a grip.

spurs_nut

inmypocketnottheirs wrote: »

For the record:

Punitive fees are in fact not enforceable in English law. The basis of these charges are as a financial penalty, because they do not relate to any work involved, or any extra work involved regarding returned or unpaid items. They are not liquidated damages, i.e. the actual cost incurred by the bank, neither are they a forecast or pre-estimate of costs or losses. Simply they are punitive charges and nothing more than a lucrative money making scheme. There are numerous cases where courts have found in favour of the claimant where punitive charges are involved. Murray v Leasureplay (2004) Dunlop Tyre Company v New Garage and Motor Co. (1915) Bridge v. Campbell Discount Co. Ltd. (1962) There are many more cases of this type - far more than I have room to list here. Furthermore it must be stated here that these charges are a direct infringement of the 1999 Consumer Credit Act, where the Unfair Terms in Contracts clause is concerned.

In your opinion only, Like you to take it to the fos and see what they say!

inmypocketnottheirs

spurs_nut wrote: »

In your opinion only, Like you to take it to the fos and see what they say!

Just like it is your opinion. But research the facts, I have quoted case law.

Over to you.

spurs_nut

inmypocketnottheirs wrote: »

Just like it is your opinion. But research the facts, I have quoted case law.

Over to you.

True. We will agree to disagree.

But I would suggest the op sorts his situation out first, and when he's sorted then is the time to start thinking about claimin those charges back. :money:

regularsaver1

Have you telephoned them to discuss your mortgage?

If you are seen as pro-active, they are more than likely to make an arrangement with you, rather than having to chase you (when more charges are added). You say they phone you, have you phoned them?

It is definately worth this, or risk your house

from website:
"
Clearing arrears on a mortgage

To discuss clearing any arrears on your mortgage just call us on 08456 03 90 19 between 8am and 8pm Monday to Friday, and 8am to 4pm on Saturdays, and we'll discuss the issue with you in complete confidence."

You will not be able to speak about arrears in the branch - they will direct you to this department.