Product Switch - Lender charged us SVR in error

D123456789

My question would be what date did the lender agree to do the product switch? 

If I switch with my current lender, they state the switch will take place  within 5 working days of the end of the current deal. They do not guarantee a particular day.

 If you have a deal ending on the last day of the month and a direct debit set up for the first day of the month, how can the lender have time to switch the mortgage before the direct debit goes out?

TheJP

D123456789 said:

My question would be what date did the lender agree to do the product switch? 

If I switch with my current lender, they state the switch will take place  within 5 working days of the end of the current deal. They do not guarantee a particular day.

 If you have a deal ending on the last day of the month and a direct debit set up for the first day of the month, how can the lender have time to switch the mortgage before the direct debit goes out?

In the illustration the lender stated 1st March (I'm staying with existing lender), documents signed and received by lender in January. Email confirmation documents received and accepted end of January. Letter in February to notify that due to BOE rate increase the new payment on 1st March has gone up.

My existing deal ended in January, was on the SVR in February

I think you may have missed the point i made that my lender has agreed they made a mistake.

ACG

TheJP said:

housebuyer143 said:

TheJP said:

housebuyer143 said:

TheJP said:

ACG said:

I think you are being unrealistic. 
No harm asking for it, but your not going to get the cost of a holiday back. 

Why not? Their error heavily impacted our holiday. We couldn't do the majority of things we had planned because of this. 

It's not the lenders fault that you went in this holiday and didn't have any reserves so that a £500 error meant you would be struggling to eat etc. 
It's unfortunate but it's not reasonable to expect that. Everything else I think you should try for but you will probably get a few hundred max I would say.

We do have reserves, we chose to be frugal and not spend what we planned as we may need to cover that cost along with the bills and food. However that's not the issue, it doesn't matter if i was on holiday and didn't have reserves, Its the lenders fault for the error which then caused distress and inconvenience. 

Looking at case studies on the financial ombudsman website a lot more has been paid out for things that were a lot less in terms of error.

If you know so well what you should be getting and don't like the replies that disagree with your opinion, then why ask on here? Just put in your claim and ask for £4000 and see what you get.

I'm asking if anyone has any experience in this situation. Saying its not the banks fault they didn't know i was on holiday isn't helpful is it. I guarantee if your holiday was affected by a banks error you would be doing the same.

I would have used my reserves or called someone to lend me some money. 

For experience, I used to work in complaints for a bank. 

You had your holiday, you had your flights, you had your accommodation - just because you did not enjoy it as much as you would have liked does not mean you are entitled to the cost of that back. There is no guarantee you will go on holiday and enjoy it. 

Strictly speaking you are only eligible for your direct costs back - ie overdraft fees, declined DD fees etc. You will likely get more than that, but I think you need to be realistic. 

amnblog

The Lender missed the switch, they have confirmed they will be refunding the overpaid amount - end of the matter.

If you went overdrawn or were charged fees at the Bank as a result of a higher DD payment you may get a claim for that if you have the patience.

Otherwise, you are wasting your time.

TheJP

Hi all, thought i would update on the situation.

Virgin Money handled the issue terribly and the following complaint. They acknowledged that they made a big mistake, failed to rectify the issue and did not handle the complaint well.

They offered us £150 plus interest and charges, we declined this offer as we felt it fell way short of our expectations of our lender. They have now offered us £250 plus interest and charges which we accept.

I hope this is a good example to the many out there that said i was wasting my time or not due any compensation. 

Hold them to account when they make mistakes.

JReacher1

TheJP said:

Hi all, thought i would update on the situation.

Virgin Money handled the issue terribly and the following complaint. They acknowledged that they made a big mistake, failed to rectify the issue and did not handle the complaint well.

They offered us £150 plus interest and charges, we declined this offer as we felt it fell way short of our expectations of our lender. They have now offered us £250 plus interest and charges which we accept.

I hope this is a good example to the many out there that said i was wasting my time or not due any compensation. 

Hold them to account when they make mistakes.

£250 seems quite low really. Not a great result. 

I got £50 from HSBC just because they sent me an incorrect letter around a balance transfer rate. 

I would have held out for more. 

TheJP

JReacher1 said:

TheJP said:

Hi all, thought i would update on the situation.

Virgin Money handled the issue terribly and the following complaint. They acknowledged that they made a big mistake, failed to rectify the issue and did not handle the complaint well.

They offered us £150 plus interest and charges, we declined this offer as we felt it fell way short of our expectations of our lender. They have now offered us £250 plus interest and charges which we accept.

I hope this is a good example to the many out there that said i was wasting my time or not due any compensation. 

Hold them to account when they make mistakes.

£250 seems quite low really. Not a great result. 

I got £50 from HSBC just because they sent me an incorrect letter around a balance transfer rate. 

I would have held out for more. 

Thanks for the insight, we haven't officially accepted yet. Although many that posted on here reckon i don't deserve anything. Maybe ill hold out...

JReacher1

TheJP said:

JReacher1 said:

TheJP said:

Hi all, thought i would update on the situation.

Virgin Money handled the issue terribly and the following complaint. They acknowledged that they made a big mistake, failed to rectify the issue and did not handle the complaint well.

They offered us £150 plus interest and charges, we declined this offer as we felt it fell way short of our expectations of our lender. They have now offered us £250 plus interest and charges which we accept.

I hope this is a good example to the many out there that said i was wasting my time or not due any compensation. 

Hold them to account when they make mistakes.

£250 seems quite low really. Not a great result. 

I got £50 from HSBC just because they sent me an incorrect letter around a balance transfer rate. 

I would have held out for more. 

Thanks for the insight, we haven't officially accepted yet. Although many that posted on here reckon i don't deserve anything. Maybe ill hold out...

Have you told them a figure you would accept?

You’re always best to suggest a figure and provide evidence to justify that amount. 

I would probably go in at one months mortgage payment as a starting point. 

TheJP

JReacher1 said:

TheJP said:

JReacher1 said:

TheJP said:

Hi all, thought i would update on the situation.

Virgin Money handled the issue terribly and the following complaint. They acknowledged that they made a big mistake, failed to rectify the issue and did not handle the complaint well.

They offered us £150 plus interest and charges, we declined this offer as we felt it fell way short of our expectations of our lender. They have now offered us £250 plus interest and charges which we accept.

I hope this is a good example to the many out there that said i was wasting my time or not due any compensation. 

Hold them to account when they make mistakes.

£250 seems quite low really. Not a great result. 

I got £50 from HSBC just because they sent me an incorrect letter around a balance transfer rate. 

I would have held out for more. 

Thanks for the insight, we haven't officially accepted yet. Although many that posted on here reckon i don't deserve anything. Maybe ill hold out...

Have you told them a figure you would accept?

You’re always best to suggest a figure and provide evidence to justify that amount. 

I would probably go in at one months mortgage payment as a starting point. 

No we haven't, but thank you for this its really helpful.

ACG

TheJP said:

JReacher1 said:

TheJP said:

Hi all, thought i would update on the situation.

Virgin Money handled the issue terribly and the following complaint. They acknowledged that they made a big mistake, failed to rectify the issue and did not handle the complaint well.

They offered us £150 plus interest and charges, we declined this offer as we felt it fell way short of our expectations of our lender. They have now offered us £250 plus interest and charges which we accept.

I hope this is a good example to the many out there that said i was wasting my time or not due any compensation. 

Hold them to account when they make mistakes.

£250 seems quite low really. Not a great result. 

I got £50 from HSBC just because they sent me an incorrect letter around a balance transfer rate. 

I would have held out for more. 

Thanks for the insight, we haven't officially accepted yet. Although many that posted on here reckon i don't deserve anything. Maybe ill hold out...

I dont think many people said you did not deserve anything.  
I said you would get your direct costs back plus a little more. I also said you would not get the cost of your holiday back.

Both of those appear to be the case. 

£250 plus costs seems reasonable to me. 

Im not saying you should take or leave their offer, only you can decide. But it is good to see you have lowered your expectations and are at least considering something that is reasonable.