ombudsman mortgage fees

bricklayer1

I had a complaint running against a mortgage company over various actions they have taken with my mortgage account.
I had found information on the site that Martin put up that more or less said that the FSA had a view on monthly mortgage fees that it wasn't acceptable for mortgage companies to charge extortionate arrears fees for what was essentially a system generated letter every month.
I put this to the ombudsman as part of my claim that I thought £50 fees every month was excessive. Unfortunately he took the view that he disagreed with me and that £50 monthly fees were not excessive.
He more or less said that these companies are allowed to charge and make money from you if you owe them anything.
Now I don't believe his views on this is correct and I think I need to take things further.
Any advice would be appreciated.
Thanks.

dunstonh

I had found information on the site that Martin put up that more or less said that the FSA had a view on monthly mortgage fees that it wasn't acceptable for mortgage companies to charge extortionate arrears fees for what was essentially a system generated letter every month.

That isnt what the FSA said. They were concerned not over the size but whether the work that the fee covered was being done or not. It instructed a number to refund but these were mostly sub prime lenders.

I put this to the ombudsman as part of my claim that I thought £50 fees every month was excessive. Unfortunately he took the view that he disagreed with me and that £50 monthly fees were not excessive.

Not unsurprising as it has found £50 acceptable in other areas they have looked at.

Now I don't believe his views on this is correct and I think I need to take things further.

The ombudsman is the final place you can go using the free of charge process. If you believe Martin is right and the ombudsman is wrong then you can put your money on it and take it to court. Of course, since the banks won the court case on charges, that is not an easy choice.

Perhaps you should consider that Martin is wrong in the interpretation of the FSA ruling and the FOS is correctly applying the decision.

bricklayer1

Hi
my lender was subprime, they were part of City Group.
Also just to add they took me to court and the Judge threw out their repossesion request and showed great displeasure on their continuing fee charging.
Also their fee charges have been reducing and are nearly half now what they originally were on a monthly basis.

brown1950

Well a few people believe Martin is correct and the FOS are wrong.
I know of at least two people who are presently in litigation with Barclays
over their mortgage arrears fee's.
Barclays have entered a defence against the litigants however lets see
if they are prepared to attend a court hearing whereby they will have to
justify their fee's ?
First court case is scheduled for October - Will Barclays allow
their mortgage arrears fee's be challenged in Court ?
Incidentally what has the Banks win against the OFT got to do with mortgage arrears fee's ?

dunstonh

Well a few people believe Martin is correct and the FOS are wrong.

Everyone is entitled to believe whatever they want.

I know of at least two people who are presently in litigation with Barclays
over their mortgage arrears fee's.

Which is the only option available to the OP now.

Barclays have entered a defence against the litigants however lets see
if they are prepared to attend a court hearing whereby they will have to
justify their fee's ?

A game of poker. If Barclays choose to defend in court and win, they can seek award from the people for costs. If small claim court, this is limited but its still a consideration. If you win, then it was worth it.

Incidentally what has the Banks win against the OFT got to do with mortgage arrears fee's ?

Since that decision, the ombudsman has taken a different approach on charges of different types compared to previously.

brown1950

Lets just see if Barclays will allow their mortgage arrears charges to be
tested in the small claims court.?
As the two LIP claims are not vexatious claims - costs are not on the agenda in a small claims court action.
I am aware in one of the actions Barclays have already offered the usual
goodwill offer of approx 60% of the claim.

bricklayer1

brown1950 wrote: »

Lets just see if Barclays will allow their mortgage arrears charges to be
tested in the small claims court.?
As the two LIP claims are not vexatious claims - costs are not on the agenda in a small claims court action.
I am aware in one of the actions Barclays have already offered the usual
goodwill offer of approx 60% of the claim.

I was offered a goodwill gesture of a miserable £500.
Their court action for repossession that they sought and that the judge threw out has still left me with the lenders legal fees added to my account.
The ombudsman doesn't want to know, they sit on the fence and eventually back the banks.
Im looking to go back to court as I need these fees removed or reduced.
The mortgage lender are always quoting t&c's . It was their hard line here that angered the judge.

dunstonh

The ombudsman doesn't want to know, they sit on the fence and eventually back the banks.

Because there is nothing wrong with them

brown1950

bricklayer1 wrote: »

I was offered a goodwill gesture of a miserable £500.
Their court action for repossession that they sought and that the judge threw out has still left me with the lenders legal fees added to my account.
The ombudsman doesn't want to know, they sit on the fence and eventually back the banks.
Im looking to go back to court as I need these fees removed or reduced.
The mortgage lender are always quoting t&c's . It was their hard line here that angered the judge.

Try this link for the latest court action against Barclays Bank PLC .

http://www.consumeractiongroup.co.uk/forum/showthread.php?440434-Orge-Vs-Barclays-Woolwich-Arrears-Charges&p=4761234#post4761234

Trust your total claim will be under £10,000 ?

magpiecottage

That has not gone to court - it has gone to mediation.

brown1950

magpiecottage wrote: »

That has not gone to court - it has gone to mediation.

Court proceedings HAVE been issued against Barclays PLC
Mediation is a STANDARD PROCEDURE PRIOR to a small claims court hearing.
In this case Mediation failed despite Barclays PLC making two offers of settlement.

Will Barclays allow their fee's to be scrutinized in Court ?

Or will they settle the court claim prior to Trial ?