MSE News: Thousands of Santander mortgage holders could get payouts after blunder

frazell

Hi DMKCAK, just wondered if there was any update from you following submission of papers to your barristers?

DMKCAK

We are stll waiting definative from the Barristers but will know next week when I am l am due to met wilth contacts in the National press,

Will update next week.

me03

Well I have now been in touch with the ombudsman in the hope that they take on my case even though it is years since I complained to Santander. The have got in touch on 30.6.16 to ask for any correspondence which I sent them my final letter from the bank and I am waiting to hear back.
It has now been over a week since I emailed them my copy so I hoping that they have decided to look into it rather than tell me I am too late - having checked the dates on the last letter it states 15.7.13 so maybe I am just within the 3 years, I certainly hope so!

I still firmly believe that my financial difficulty could of been avoided had we of been able to lower our monthly payments back then - yes mine is a difficult case due to already missing the odd payment but I want my money back they owe me! I wont hold my breath though!!:D

frazell

I think you'll find a massive void between getting the FoS involved and getting them to apply common sense to your case.

I'm sitting patiently waiting to see what DMKCAK's barristers make of all this, at which point we might reconsider what we might do with this.

Good luck me03!!

frazell

Fishing mad, Hmmmmmm, what a surprise.

This is almost exactly how it played out for me. There was a definite sea change in the FoS's approach which came across as almost threatening, "if you don't accept now, then it will get much worse for you".

Its such a disappointing approach by a body that is supposed to be set up to adjudicate these matters and apply the law where appropriate. There almost "appears" to be a level of collusion.

Interestingly, whilst we've accepted our offer and returned the paperwork some weeks ago, no money is forthcoming (yet). I'm still waiting to see if anything further unfolds in this thread as we may still consider a court action if things look favourable.

I would suggest you keep an eye on developments here as even though you have accepted, I think this is far from over.

DMKCAK

Dear All,

We are still awaiting opinion but the following points have been raised in the Legal Opinion so far;

1/-Material or Significant Breach of Contract by Santander
2/-Concerns over calculation and quantification of loss at 3% minimum.
3/-Compound or Simple interest calculation going forward.
4/-Offers of future deals going forward considering breach of contact issue.
5/-FOS handling of the cases and lack of independence showed.

On the last point I have included a response from Kate Hennessey (a Senior Manager from the FOS) in full and with names.

Dear Mr and Mrs

Your complaint against Santander, our reference 14700703

My name is Kate Hennessey. I’m the senior ombudsman in the mortgages department here at the Financial Ombudsman Service. I’m also line manager for Ken Rose, the ombudsman who issued the final decision on your case. You’ve recently been in correspondence with one of our team managers, Nichol Chacon. Both Nichol and her team member Kim have brought me up to date with all the reasons you’re unhappy with the investigation and outcome of your complaint against Santander. Normally, it would take me a bit longer to look into such detailed matters. But because your reply to the final decision is due this Monday, 11 July, you clearly need a speedy response from me. But I can assure you that we’ve looked very thoroughly at everything you’ve said.

First of all, I want to let you know that I’m sorry you haven’t had the outcome you were seeking in this matter. As a dispute resolution service, we understand that our decisions can be disappointing for whoever didn’t hear what they were hoping for. We’re also very aware of the potential impact they can have on our customers. This is why consumers have the choice to reject our decisions in case they want to pursue their complaints through the courts – for example. Our decisions become legally binding only once accepted by the consumer.

In your last email to us, you mentioned that you came to us in September 2013, and feel you’ve been “fobbed off” for over two years while we looked into your case. I agree that your case took much longer than I would like, and for that I apologise. We investigate each case very carefully, and always try to give our customers answers as soon as we can. However, some cases are very complex and take longer to be considered and this was the situation in your case. So I’m sorry you had to wait so long for an outcome. But, partly because we had to give your case – and other similar ones – such careful consideration, I’m confident that everything you’ve said to us, including all the evidence you provided, was very carefully considered by Ken before he arrived at his conclusions.

You have suggested that we have no powers to be able to direct businesses. Our remit has been set up under statute (Financial Services and Markets Act 2001). The Act explains our role and how far it extends. We’re completely impartial and we assess complaints based on what we determine is fair and reasonable in the individual circumstances. It isn’t part of our role to direct or punish financial businesses if something has gone wrong. That is the responsibility of the regulator, the Financial Conduct Authority. But, if you accept our final decision, we then have the legal power to enforce the settlement and direct Santander to carry it out in line with our final decision. If the final decision is rejected, we can’t direct Santander to do this.

You’ve asked for an up to date calculation, compound interest and a deduction of arrears at 3%. I’ve just spoken to Nichol about your telephone conversation with her earlier this afternoon. The information Nichol gave you about what the final decision means is correct. It is our last and final word about your complaint about Santander. So we won’t be asking Santander to make any changes to the offer, and we can’t help you any further. If you want to pursue your complaint further, you’ll need to do this outside our service. This option is available to you if you tell us that you reject the decision by the deadline that’s been provided - 11 July.

I note you’ve suggested referring the matter to Caroline Wayman and said you believe she should be involved. Of course you’re entitled to contact Caroline if you wish to do so. She does take in interest in the feedback we receive. But as the head of a large organisation, she tends not to get involved in individual complaints. So she’s likely to delegate responsibility for responding to someone better placed to do so and that is likely to be me as senior ombudsman in mortgages. However, if you decide you want to contact her, you can write her at Caroline.Wayman@financial-ombudsman.org.uk

If you’re still unhappy with the handling of your case, as opposed to the outcome, you can get in touch with the independent assessor. Ms Amerdeep Somal. However, please be aware of her terms of reference that are available HERE. She won’t look into any disagreements about the outcome or investigation - including what weight was given to any evidence provided and whether or not our assessment was correct.

Yours sincerely

Kate Hennessey


Kate Hennessey
Senior Ombudsman
Financial Ombudsman Service
Exchange Tower, London, E14 9SR
kate.hennessey@financial-ombudsman.org.uk


If anyone is concerned or unhappy with the way that their complaint has been handled by the FOS we strongly suggest that you contact Caroline Wayman or the Independent Assessor Ms
Amerdeep Somal by way of a formal complaint.

We feel that this whole affair has been handled in such a way that the FOS have been complicit in finalising matters against borrowers and in the favour of an industry as a whole.

WE still await formal Legal Opinion but in the meantime as we have no "gagging order" placed on us via a settlement agreement (it would appear that we are not the only ones) and that these agreements will be a long time coming. We will attempt to get the matter before the national press.

It should be noted that Kate Hennessey states that the FOS can enforce these final decisions if accepted on Santander as they are legally binding - so if you have nothing yet complain again to the FOS and insist that they do their job. They have failed to do so so far.

As you can see from the tone of Hennessey's letter the FOS just want to wash their hands of this.

We hope this helps.
DMKCAK

frazell

Hi DMKCAK,

What are your views of the 3month exit clause in the Standard Mortgage Conditions? Santander continue to state that this was only available to people on the SVR or a tracker mortgage at the time.

I can find no reference that this was/is the case and I believe that we could all have exited our deals and gone elsewhere if we could have exercised this clause.

Unless the SMC's are overridden somehow by the Mortgage Offer?

DMKCAK

frazell,

Mine and Legal Opinion is that because the clauses refer to the payment of the Capital in full then it refers to a Full Repayment of the Capital or a Remortgage away from Santander.

The 90 days and the waiver of any ERC means that it applied to all loans on a product that had an ERC - fixed, tracker and any tied in on an SVR with redemption charges.

DMKCAK

frazell

DMKCAK,


Thanks, that confirmed what my thoughts are. Please keep us all updated as I think we'd proceed to engage with formal legal advice on this either individually or as part of a class action.

mac24

frazell wrote: »

DMKCAK,


Thanks, that confirmed what my thoughts are. Please keep us all updated as I think we'd proceed to engage with formal legal advice on this either individually or as part of a class action.

Yes. This is the crux of the matter. I haven't mentioned it in any of my correspondence with the ombudsman.Decided to go down the contract breach route.
Prove the three month rule and it blows the whole thing open. Please keep us updated and if you need anything from me just shout.
Out of interest DMKAK, what kind of a deal were you on. I was mid way through a 5 year fix and have been offered nothing.