Beware! - Charges for paying your mortgage off by cheque

I paid off my mortgage at my local Abbey branch, paying over the counter the amount they requested including redemption fees. I was told that the next step was for me to receive my deeds. I went away happy (ecstatic in fact!) and waited for some weeks. I then got a letter from Abbey saying I owed them an extra £18.90 for 6 days interest for cheque clearance. Bearing in mind this wasn't mentioned to me at the branch I felt pretty miffed that my deeds were being held up for the sum of £18.90. It would have been easier just to pay the £18.90 than to jump through the hoops of the Abbey complaints process but I was not giving into what I considered an injustice - particularly as the cheque had actually only taken 3 days to clear and the "company policy" mantra was repeated constantly when I complained about the charge! I was promised a decision letter that didn't arrive and was told I needed to complain to the next level - same complaint but tell it to someone else!! I am awaiting the outcome of yet another conversation with customer service - level 2 I presume - still no deeds and not even the promise of them. I'll let you know what happens.

Replies

  • Nice to know though that you will never have to deal with them again - good riddance to (Sh)Abbey!!!!
    :D Thanks to MSE, I am mortgage free!:D
  • Question for "DLS":

    How does the paying-off transaction work in practice? Did you just turn up to the branch on the day and ask at the counter to pay off the mortgage, or did you need to request a redemption cost from Abbey beforehand? If the former then presumably they had to go away and calculate it, adding on swingeing MEA fees etc.... Were you given the opportunity to pay by debit card?
  • Question for "DLS":

    How does the paying-off transaction work in practice? Did you just turn up to the branch on the day and ask at the counter to pay off the mortgage, or did you need to request a redemption cost from Abbey beforehand? If the former then presumably they had to go away and calculate it, adding on swingeing MEA fees etc.... Were you given the opportunity to pay by debit card?

    That's what I thought when I saw the title.

    Surly the redemption cost should be the final & total bill?

    Looks like they wanted to take one last unnecessary cost from you. (You maybe able to claim it back. Have a look on this forum)

    Banks, they make me F****** swear sometimes:mad:
    Regards,
    Dave

    If only I had a pound for every time I used the thanks button :D
  • DLSDLS Forumite
    2 Posts
    Sorry guys I haven't replied yet and thanks for your interest - life has it's distractions! I wasn't given the opportunity to pay by direct debit. I don't think the branch staff were aware that there would be charges for paying by cheque (although I suppose they should have been!). The branch staff phoned up for a redemption figure and presented that to me as the final payment for closing my account. I have today tried to track my complaint and will probably spend the best part of £18.90 on phone charges dealing with this issue!
  • Abbey was right to charge interest, but may be not 6 days.
    The redemption amount was based on the day of the request and assuming you pay off on the same day. This can be achieved by either:
    1) Paying cash on the day
    2) Transfer the money from an Abbey account on the same day
    3) CHAPS payment from another bank account

    Any other method - even direct debit from another bank would have caused a delay and therefore interest.

    You could argue why it took 6 days to clear the cheque.
  • groatie_queengroatie_queen Forumite
    909 Posts
    Mortgage-free Glee!
    ✭✭✭
    When I recently paid off my Woolwich / Barclays mortgage, I was given a verbal redemption amount in my local branch, which they had obtained by telephone. Barclays followed it up with a paper copy sent in the post, but in the meantime I had posted them a cheque for the final amount.

    The redemption statement was valid for 30 days and stated that no more interest would be charged providing I paid off the mortgage within that time frame.

    So not all mortgage lenders charge interest after giving a final redemption amount.

    GQ
    If you have a talent, use it in every which way possible. Don't hoard it. Don't dole it out like a miser. Spend it lavishly like a millionaire intent on going broke.

    -- Brendan Francis

  • Just a thought - may be Barclays have added 30days of interest to your redemption amount, therefore giving you 30 days to decide. If that's the case then you would be worse off.
    Can't see any lender giving away 30 days interest free period on any mortgage.
  • groatie_queengroatie_queen Forumite
    909 Posts
    Mortgage-free Glee!
    ✭✭✭
    Hi happyhunter, I had an offset mortgage so wasn't paying any interest anyway because the small amount I still owed was completely offset.

    GQ
    If you have a talent, use it in every which way possible. Don't hoard it. Don't dole it out like a miser. Spend it lavishly like a millionaire intent on going broke.

    -- Brendan Francis

  • Hi happyhunter, I had an offset mortgage so wasn't paying any interest anyway because the small amount I still owed was completely offset.

    GQ

    In that case, your situation is different to DLS.

    As you've said, you weren't paying any interest anyway (well, its been offsetted by your savings interest).

    Assuming DLS had a normal mortgage, no offsets, therefore need pay interest.
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