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KR Mortgage errors- Compo and justice at last!!!
casparg44
Posts: 45 Forumite
Hi all
I thought I'd share my good news story to help anyone out there who has had to fight their mortgage company or complain about their incompetence.
My wife and I had a £1.2m mortgage with Kent Reliance (KR), initially a 2 year tracker. The bank incorrectly applied a higher interest rate to our account and thus overcharged us each month by about £1000!
Each month they took this over payment by direct debit. After a few months I noticed the error and called them, but after several calls and letters they still didn't make any changes and kept taking the over payments.
I then cancelled the DD and started paying the correct amount by BACS.
On our annual mortgage statement and all correspondence the bank put the wrong account number, so the wrong account number was used by us (unknowingly) as the reference to send the money to apply to our mortgage account each month. However they didn't return the money they kept it so we were blissfully unaware of any issues, meanwhile still (unsuccessfully) trying to get our overpaid money back!
After 3 months we started getting letters stating we were in arrears. I called again and was told sorry we will sort this out.
After 6 months we received court papers threatening to repossess our house. This was the week before Xmas and completely ruined our Christmas.
All the while we had made our due payments and even overpaid!
I responded as such on the court papers in defence.
Suddenly the court case was dropped but still no apology or any refund from KR!
Meanwhile I apply for a credit card and after being refused then notice that our credit report is screwed as they are reporting we are 6 months in arrears when we are not!
I write a letter for the 18th time and receive a response stating the money has now been applied to the account and in compensation they are offering me £100!!! No mention of refunding my over payment, the credit file is still not amended and the account is still overpaid!!!
Then the tracker rate expires and we are on a shockingly horrendous rate of 5.83%- which for a £1.2m mortgage is a killer! However we cant move or even apply for a new mortgage as our credit files show we are in arrears of 6 months despite us never missing a payment and even overpaying. We are told by all banks.... come back when you sort it out your credit file with KR!!!
Unfortunately KR do not amend the file so I then resort to escalating my complaint to the IFO, who I have to say were EXCELLENT!!! They were shocked by KR's incompetence. I sent the IFO several screen shots of our credit file and they quickly instructed KR to amend the files. However it did take KR over 4 months to do this!
I am glad to say the credit files are now amended but meanwhile it has cost is a fortune in interest as we could have moved to a much better rate when our tracker expired. Luckily we had it in writing from our new bank that as soon as the credit file was sorted we could apply .....so the IFO awarded us compensation of the difference in KR rate and this banks rate..... This equals of just shy of £30,000!!!!
Plus the IFO awarded us £2000 in compensation for stress caused etc.
Bit more than the £100 that KR offered us!
Very pleased and just shows you perseverance sometimes works and definitely use the IFO when relevant!!!! Hopefully now their mistakes have costs them over £30k some manager will take notice and realise how incompetent and useless their bank is! Then again, maybe not!
:beer::rotfl::T:money:
I thought I'd share my good news story to help anyone out there who has had to fight their mortgage company or complain about their incompetence.
My wife and I had a £1.2m mortgage with Kent Reliance (KR), initially a 2 year tracker. The bank incorrectly applied a higher interest rate to our account and thus overcharged us each month by about £1000!
Each month they took this over payment by direct debit. After a few months I noticed the error and called them, but after several calls and letters they still didn't make any changes and kept taking the over payments.
I then cancelled the DD and started paying the correct amount by BACS.
On our annual mortgage statement and all correspondence the bank put the wrong account number, so the wrong account number was used by us (unknowingly) as the reference to send the money to apply to our mortgage account each month. However they didn't return the money they kept it so we were blissfully unaware of any issues, meanwhile still (unsuccessfully) trying to get our overpaid money back!
After 3 months we started getting letters stating we were in arrears. I called again and was told sorry we will sort this out.
After 6 months we received court papers threatening to repossess our house. This was the week before Xmas and completely ruined our Christmas.
All the while we had made our due payments and even overpaid!
I responded as such on the court papers in defence.
Suddenly the court case was dropped but still no apology or any refund from KR!
Meanwhile I apply for a credit card and after being refused then notice that our credit report is screwed as they are reporting we are 6 months in arrears when we are not!
I write a letter for the 18th time and receive a response stating the money has now been applied to the account and in compensation they are offering me £100!!! No mention of refunding my over payment, the credit file is still not amended and the account is still overpaid!!!
Then the tracker rate expires and we are on a shockingly horrendous rate of 5.83%- which for a £1.2m mortgage is a killer! However we cant move or even apply for a new mortgage as our credit files show we are in arrears of 6 months despite us never missing a payment and even overpaying. We are told by all banks.... come back when you sort it out your credit file with KR!!!
Unfortunately KR do not amend the file so I then resort to escalating my complaint to the IFO, who I have to say were EXCELLENT!!! They were shocked by KR's incompetence. I sent the IFO several screen shots of our credit file and they quickly instructed KR to amend the files. However it did take KR over 4 months to do this!
I am glad to say the credit files are now amended but meanwhile it has cost is a fortune in interest as we could have moved to a much better rate when our tracker expired. Luckily we had it in writing from our new bank that as soon as the credit file was sorted we could apply .....so the IFO awarded us compensation of the difference in KR rate and this banks rate..... This equals of just shy of £30,000!!!!
Plus the IFO awarded us £2000 in compensation for stress caused etc.
Bit more than the £100 that KR offered us!
Very pleased and just shows you perseverance sometimes works and definitely use the IFO when relevant!!!! Hopefully now their mistakes have costs them over £30k some manager will take notice and realise how incompetent and useless their bank is! Then again, maybe not!
:beer::rotfl::T:money:
0
Comments
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Apologies - who are the IFO? Not the FOS presumably?0
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Independant Financial Ombudsman...... sorry i should have said Financial Ombudsman service!!!0
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