Mortgage Early Redemption Charge

MgStu

MWT said:

ACG said:

Had you been given the correct information on the phone there is no way you would have paid it off, its reasonable to assume you would have held off 11 days. 

Certainly can't hurt to try the Ombudsman, but just out of curiosity, which part of the information given in the phone call would you consider to be 'incorrect'?

The person on the phone could have reiterated the warning about the ERC, but as you said, it had already been given, so in what way was the information provided 'incorrect' ?

If they had reiterated the ERC of paying before 31st I not have acted as I did.  A reiteration would not have cost me money, so I would definitely appreciated it.

MgStu

@ACG thank you, tbf that is my only argument really, that after speaking to them numerous times and outlining how I intended to make payments they did not reiterate the ERC being applicable if I pay the total prior to the 31st.  Yes I paid 10 days early but I assume the same would even have applied if it I was only 1 day early so making that point is pretty important.

MWT

ACG said:

I had a subsequent call with the redemption dept where I asked if I could make payments over two day and was told "you can pay anytime up to 31st"

That is incorrect by the sounds of it. 

The OP was given the wrong information. They acted upon that incorrect information. The person on the phone made a mistake, thats fine mistakes happen. But its the companies job to put it right as they need to train their staff better. Had the OP been told he would have to wait until the 31st or 1st, he/she would have done I am guessing as it was 11 days.

Interesting perspective, I still don't see how that is an incorrect answer to the question 'could I make payments over two days', but lets see what the Ombudsman makes of it...

It could have been more helpful with a reiteration of the ERC warning for sure, and that may be enough to get a favourable ruling.

housebuyer143

I think you can argue you were given the wrong info on the phone or the agent was not clear enough. No reasonable person would pay it off 11 days early it you knew about the charge, it doesn't make sense. This therefore says to me it was not explained clearly how the process worked 

Thrugelmir

housebuyer143 said:

I think you can argue you were given the wrong info on the phone or the agent was not clear enough. No reasonable person would pay it off 11 days early it you knew about the charge, it doesn't make sense. This therefore says to me it was not explained clearly how the process worked 

The charges are clearly explained in the product literature issued at the time the product is offered. Customer service agents aren't there to provide advice. Just provide information. How a question is phrased can easily lead to misunderstandings, likewise the response given. The phone conversation should be listened to. 

ACG

MWT said:

ACG said:

I had a subsequent call with the redemption dept where I asked if I could make payments over two day and was told "you can pay anytime up to 31st"

That is incorrect by the sounds of it. 

The OP was given the wrong information. They acted upon that incorrect information. The person on the phone made a mistake, thats fine mistakes happen. But its the companies job to put it right as they need to train their staff better. Had the OP been told he would have to wait until the 31st or 1st, he/she would have done I am guessing as it was 11 days.

Interesting perspective, I still don't see how that is an incorrect answer to the question 'could I make payments over two days', but lets see what the Ombudsman makes of it...

It could have been more helpful with a reiteration of the ERC warning for sure, and that may be enough to get a favourable ruling.

I see your point but only now it has been pointed out. 
Maybe not incorrect then, but presumably with the context of the call it was maybe misleading. Whilst yes it is factually correct, the person in customer services should surely have said "yes you can, but you will incur ERCs up until the 31st" - 

MgStu

ACG said:

MWT said:

ACG said:

I had a subsequent call with the redemption dept where I asked if I could make payments over two day and was told "you can pay anytime up to 31st"

That is incorrect by the sounds of it. 

The OP was given the wrong information. They acted upon that incorrect information. The person on the phone made a mistake, thats fine mistakes happen. But its the companies job to put it right as they need to train their staff better. Had the OP been told he would have to wait until the 31st or 1st, he/she would have done I am guessing as it was 11 days.

Interesting perspective, I still don't see how that is an incorrect answer to the question 'could I make payments over two days', but lets see what the Ombudsman makes of it...

It could have been more helpful with a reiteration of the ERC warning for sure, and that may be enough to get a favourable ruling.

I see your point but only now it has been pointed out. 
Maybe not incorrect then, but presumably with the context of the call it was maybe misleading. Whilst yes it is factually correct, the person in customer services should surely have said "yes you can, but you will incur ERCs up until the 31st" - 

Especially as they work in the Redemption Dept and are therefore specialists dealing with the same subject every day!  I will try the Ombudsman.  Thanks for all your comments - in summary it’s not looking good for me! 

kingstreet

Don't forget you have to exhaust the lender's complaints procedure and have a final outcome letter before you can escalate to FOS.

MgStu

kingstreet said:

Don't forget you have to exhaust the lender's complaints procedure and have a final outcome letter before you can escalate to FOS.

I have had a final decision letter from them so will talk to the FOM tomorrow - I’m not holding my breath but worth a try especially as the lender confirmed the content of my last phone call before paying - and the lack of a reminder regards ERC.  Thanks again all.

Thrugelmir

MgStu said:

kingstreet said:

Don't forget you have to exhaust the lender's complaints procedure and have a final outcome letter before you can escalate to FOS.

I have had a final decision letter from them so will talk to the FOM tomorrow - I’m not holding my breath but worth a try especially as the lender confirmed the content of my last phone call before paying - and the lack of a reminder regards ERC.  Thanks again all.

In your OP you said

 On a letter they mentioned if I redeem before the 31/1 there will be a charge.  

Unsure why you'd expect a further reminder.