Remediation

duck_egg_2

Hi,

We have a secured loan with £1,300 worth of arrears, the creditor wrote to us in July 2014 informing us that due to a system error, they were in breach of their obligations under the CCA because they failed to send regular Notice of Sums in Arrears letters and they failed to advise us when a default sum was added.

Any interest charged during that period was removed and they made an adjustment on the loan account totalling £2,626.00. We asked if the amount could be offset against the arrears and the remainder offset against the account, they refused stating, The arrears on your account relate to missed contractual payments which still remain outstanding. Therefore our error has had no impact on your monthly payments.

This is their final response and they are now going for a possession order unless we pay back the outstanding arrears. They are refusing our offer of a repayment plan unless it's tied in to a suspended possession order. Is this worth pursuing with the Ombudsman or are they right with their response?

Any help and advice would be gratefully appreciated.

Thanks

fermi

Is this NRAM?

sourcrates

Hi,
They usually go for a suspended possession order first, then a suitable payment plan can be agreed with the judge.

In reality, they don't want to re-possess you, as the mortgage provider would have first dibs anyhow, they would prefer the money.

This happened to me a few years ago, arrears on a second mortgage, it went to court, and a plan was agreed at court.

duck_egg_2

Aye, I'm aware of that. I'm just wondering why they didn't wipe out the arrears with the remediation money and would the Ombudsman take a dim view on the fairness of their actions?

duck_egg_2

fermi wrote: »

Is this NRAM?

No, it's a different shark

glentoran99

duck_egg wrote: »

Aye, I'm aware of that. I'm just wondering why they didn't wipe out the arrears with the remediation money and would the Ombudsman take a dim view on the fairness of their actions?

they might, as halifax tried similar with me, after I had settled with them they confirmed a balls up, but as it was a partial settlement they tried to take the money they owed me off the balance, I contacted the ombudsman and they backed down and sent me the money.

Worth phoning them for advice

duck_egg_2

glentoran99 wrote: »

they might, as halifax tried similar with me, after I had settled with them they confirmed a balls up, but as it was a partial settlement they tried to take the money they owed me off the balance, I contacted the ombudsman and they backed down and sent me the money.

Worth phoning them for advice

Cheers, definitely worth a try