Furness building society loan discrepancy

Katlmorgs

jonesMUFCforever said:

OP Any news or developments about this?

Sorry its been a while, so my parent have complained to the Furness BS and it had to go through their complaints team which took many weeks. They admitted their error and they have offered to reduce the amount payable by 25k (which still leaves 20k ish out standing still to be paid back over the 10 year period) and offer a £500 compensation. They advised that if my parents were not happy with this out come that it could be taken to the ombudsman. As this error made my Furness has massively impacted the lives of my parents and they will now longer be able to retire for possibly the rest of their lives (my mother has leukaemia and my farther currency has eosinophilic pneumonia) so they will struggle to continue working. They have decided to take this to the ombudsman and are sending the forms out today. (My personal opinion is that what Furness have offered is pretty decent but in my parents circumstances I get why they are looking for a better result, but I'm unsure if they will be able to obtain that)

molerat

Don't get your hopes up.  It looks like a pretty generous offer.  The other bias they have to overcome is that as as business you are expected to take due diligence on any transaction above that of the ordinary man in the street and that document does not add up. .

phillw

Plugging the numbers into the MSE mortgage calculator
80,000 borrowed over 16 years would be:
Per month, you repay
assuming your interest rate stays the same

£616

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Total you'll repay over full term
(Includes mortgage debt, £80,000 + total interest £38,351)

£118,351

Over 26 years

Per month, you repay
assuming your interest rate stays the same

£470

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Total you'll repay over full term
(Includes mortgage debt, £80,000 + total interest £66,685)

£146,685

In terms of putting your parents back to the position they would be if Furness hadn't made the mistake, you are looking at £28,334. However they also had the benefit of the £146 a month for the last 16 years, so you could probably argue for an extra couple of grand. They might not agree.