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Mortgage Early repayment charges
MissPiglet
Posts: 2 Newbie
I recently received a letter from my old mortgage company (NRAM) to let me know that some of their communications with me regarding my old loan 'mortgage' did not comply with CCA rules.
Subsequently they were going to refund me for 'any interest and default charges that were applied to my account' during the period of non-compliance.
As I closed my loan before the end of this time and I had to incur some hefty early repayment charges should I be asking the bank for these to be refunded also?
Subsequently they were going to refund me for 'any interest and default charges that were applied to my account' during the period of non-compliance.
As I closed my loan before the end of this time and I had to incur some hefty early repayment charges should I be asking the bank for these to be refunded also?
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Comments
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The ERC has nothing to do with the CCA failure. Two totally separate things. you didnt pay the ERC due to a CCA failing.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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Thank you for your reply. As I am not familiar with these things I may be mis-reading the letter. I just understood from the wording that the loan was not compliant and that due to this charges during a period would be refunded. As the repayment charges fell in this period I wasn't sure if they would fall into the refund.0
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MissPiglet wrote: »Thank you for your reply. As I am not familiar with these things I may be mis-reading the letter. I just understood from the wording that the loan was not compliant and that due to this charges during a period would be refunded. As the repayment charges fell in this period I wasn't sure if they would fall into the refund.
There were failings in complying with the consumer credit act. You got charged interest and charges you were meant to be. So, nothing unexpected. However, due to a minor clerical error, you are getting lucky and getting some money back as they are not allowed to charge interest for the period in relation to the breach. If the CCA breach applied to the ERC then it should not be charged. However, all the information I have seen so far seems to relate to interest.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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