Furness building society loan discrepancy

fwor

Please try not to let your parents get their hopes up too much over this. As a general observation, it's accepted that typographic mistakes in legal documents can happen when humans get involved. The fact that the figures in that covering letter don't add up doesn't mean that the lender is just going to say "fair enough - you can keep the rest of the money you owe", so please don't allow your parents to expect that.

It's reasonable to expect the lender to at least be sympathetic about their error, and that may involve them making a goodwill payment by way of compensation. But the chances of them writing off tens of thousands of pounds because of a typo seem low, to say the least.

jonesMUFCforever

My expectation would be as follows;
Take the balance owing now - work out the interest on that balance at the rate quoted on the paperwork for 10 years and deduct that amount to work out the new outstanding figure.
That is then paid at the same monthly amount until repaid. - in effect an interest free loan.

Katlmorgs

jonesMUFCforever said:

My expectation would be as follows;
Take the balance owing now - work out the interest on that balance at the rate quoted on the paperwork for 10 years and deduct that amount to work out the new outstanding figure.
That is then paid at the same monthly amount until repaid. - in effect an interest free loan.

Furness have called back today and they have advised that they can see the paperwork that has been signed does not match the terms they have on the system and they do not understand where the error has occurred. All they said it that they are handing it over to the complaints department and they will be in touch. So no I guess we wait.

lordmountararat

Clearly someone typed in a '1' when it should have been a '2' and no one noticed the error at the time. Your parents may receive an apology and a good will payment, but they're on a bit of a hiding to nothing if they expect thousands of pounds to be effectively written off by the building society, imho. Still, you never know!

Sandtree

lordmountararat said:

Clearly someone typed in a '1' when it should have been a '2' and no one noticed the error at the time. Your parents may receive an apology and a good will payment, but they're on a bit of a hiding to nothing if they expect thousands of pounds to be effectively written off by the building society, imho. Still, you never know!

But in that case you’d expect the 1 to be in both the system and the letter... letters like this are normally system generated not created independently. 

It could be a small building society didnt have a tenth decent IT system back in 2004 and the letters were not system generated but I’d be surprised and inevitably the complaints team will either try to get to the bottom of it or airbrush over it as a human error and propose a resolution.

superbigal

You mention all the statements.   Seriously he must have noticed the balance and time left before now.  

Katlmorgs

superbigal said:

You mention all the statements.   Seriously he must have noticed the balance and time left before now.  

That was my initial response but the statements go to the business address (the one which the mortgage is on) which the staff just file away as my parents knew they weren't missing any payments so didn't fee the need to examine them. The building society have been back in touch and have advised everything was paper based in 2004 and the computer systems were out dated back then. They have also acknowledged that this is a massive error made by the building society and we are now waiting on a resolution.
we are concerned also that if the out come is that the payments are still to be made and the full £145,000 or how every much is to be paid back for the next 10 years both my parents are suffering from severe health issues and may not be around that long! What would happen in this case?  

[Deleted User]

In that event, the debt would be settled from their estate, assuming there is enough in there.

jonesMUFCforever

Any joint debt would form a debit on a deceased person's estate. As the loan is secured they would get their money back by the sale of the property or someone else would have to take on the loan.

jonesMUFCforever

OP Any news or developments about this?