kensighton mortgages

killerkev

brown1950 wrote: »

KENSINGTON MORTGAGES FINED BY FSA FOR UNFAIR FEES

Oh Dear
http://news.bbc.co.uk/1/hi/business/8615870.stm

That was over 4 years ago and doubtful they would still be putting those fees on present arrears, as we don't know how the payments break down it is difficult to give a accurate answer How much are the arrears? if its 12k as OP states then new payment do not sound out of place how many payments did the OP miss? what did they agree to ?
Kensinton tend to deal with the more difficult end of the market

roonaldo

lady_in_need wrote: »

my question is are they allowed to put interest on both my arrears and my loan

Yes as already stated.

why cant I get this stopped its never coming down

If they stop charging interest then they have effectively given you free money and thats not going to happen. Pay off more to bring the loan balance down.

magpiecottage

roonaldo wrote: »

If they stop charging interest then they have effectively given you free money and thats not going to happen.

The justification for this is in FCA Principle 7, which says:

"A firm must manage conflicts of interest fairly, both between itself and its customers and between a customer and another client."

They have to charge interest to stay in business - they do not print the money they lend you, they borrow it elsewhere and have to pay interest on it themselves. If they do not charge you for the money they borrow that they lend on to you, then they will have to charge other borrowers instead. This would not be fair management of the conflict of interest between you and the other borrowers.

Similarly with fees for costs incurred as a result of you falling into arrears. They are allowed to charge an amount that is a reasonable reflection of those costs. The problem previously was that arrears were looked on as what amounted to a profit centre in their own right.