Excessive charges for a letter

marybryant

I am trying to surrender several endowment policies, but my insurance company say they may still be assigned to several building societies. The insurance company need a letter from these lenders to confirm that they are no longer interested in the policies.
I spoke to two of my former lenders (Leeds and C & G) who immediately said they would send a letter for me. The third lender (Birmingham Midshires) also said they would send a letter - but the charge is £85.00!! Are they really allowed to do this? It seems a penalty rather than an admin charge, but without the letter I can't surrender my policy.
Does anyone have any suggestions what I could do?

Noz

Is your BM mortgage still open?

marybryant

Yes, but with only £1,000 now outstanding, although there is the option to draw down up to £60,000 if we want.

JoeK_3

Ask them to consider reducing the £85 as you think that it's excessive.

JoeK

Noz

marybryant wrote: »

Yes, but with only £1,000 now outstanding, although there is the option to draw down up to £60,000 if we want.

Going purely from their website, the £85 fee seems to be for:

Consenting to transactions during the life of the mortgage: £85

This includes administrative tasks such as:

* Amending terms and conditions of a mortgage e.g. change term or repayment type.
* Consenting to transactions, including releasing part of the land, variations of leases, and grants of easements.

Please note that charges will apply where a valuation is required. See the section below on Valuation Fees for more details.

so its not purely for the letter but probably changing your mortgage to repayment as they release their interest in your policy. I think the letter they produce would only be part of the process covered by £85.
JoeK approach is correct, write to them informing them that you think its excessive for the service.