Interest Refund

Mark_Lion

I received a letter from Catalyst Housing about my mortgage with them.
The letter states, "a administrative error in the documentation I have been provided with relating to my Home Buy loan.

The effect of the error was that the annual statements (and other notices where relevant) did not contain all of the information and forms of wording which they were required to contain by consumer credit legislation."

So I will be getting my interest refunded to me back to the start of the loan in 2009.
A refund of £7962.14
The refund will be deposited into my bank within 45 working days.

This is great news, if it is true.
The letter does not ask for my bank account number, so at the moment, it does not look like a scam.

Does anyone know about this?

dimbo61

Did you have a mortgage with this company ?
Do you have any of the paperwork with phone numbers to check if this is true.
Have you been paying too much interest ?

flashg67

There were a number of firms affected by not having all the correct T&Cs

http://www.theguardian.com/money/2014/mar/20/credit-loan-refund-banks-regulator

Mark_Lion

Thanks flashg67. That article looks it might be good news.

dimbo61
Did you have a mortgage with this company ? Yes, it is called MyChoice HomeBuy.
Do you have any of the paperwork with phone numbers to check if this is true? The letter sent to me has a phone number (0300 303 5081). I Googled the number and it is the correct company. Also have the original paperwork. I was reluctant to phone, in case I changed their mind!
Have you been paying too much interest ? No, the letter says I have been paying correct interest and will continue to pay the same interest. The administrative error is the reason for the refund.

Money_saving_maniac

Back of the net! Congrats on your windfall!

bibble81

Hi Mark,

I'm on the My Choice Homebuy scheme and have received the same letter.
I was also sceptical at first as it sounded too good to be true.
I'm not sure I'll fully believe it until I see the money!

window25

Received the same letter from our loan starting March 2010- just called the number on the letter had a few questions. Man said that money should be paid before 45 days! Now to wait!

kingstreet

These are shared equity loans administered by Registered Social Landlords; a forerunner to the Help To Buy - Equity Loan scheme.

Catalyst also had the HTB contract in the SE until they lost it to BPHA at the last tender.

I'm sad to say the ineptitude of these organisations means money which would have been available for reinvestment in social and affordable housing has been lost.

davieboythom

Hi All!
I received the same letter and contacted Catalyst who confirmed that the letter was genuine!

Does anyone know if this error may affect the amount of money you have to pay back to Catalyst if your home has increased in value? Reading the guardian article it states that companies are not allowed to keep the interest or gain charges during the affected period!!

zandner

davieboythom: "Does anyone know if this error may affect the amount of money you have to pay back to Catalyst if your home has increased in value? Reading the guardian article it states that companies are not allowed to keep the interest or gain charges during the affected period!!"

That's a very interesting observation davieboythom - we're thinking about buying some equity soon, and very interested if anyone has anything concrete on this...any legal experts out there?

window25

Anyone heard anymore on this? Or we all just waiting to receive payment?