Letter Issued to the Wrong Address

newbieni

This is on behalf of someone else, I've suggested that they should refer this to FOS 

A landlord recently paid off their mortgage. There was an issue with the final payment, which prompted a complaint to the bank. The bank didn't respond at first. The tenant then contacted the landlord, saying they had "accidentally" opened a letter sent to the rental property, discovering the landlord was now mortgage-free. Subsequently, the tenant asked for significant rent reductions and home improvements.

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The landlord was shocked and called the bank. The bank admitted the letter was sent to the rental property by mistake but claimed the tenant was truly at fault for opening it. The bank also stated that, despite the tenant opening the letter, it was "good news" for them to know the property was paid off.

​I believe the situation is now awkward and the tenant has voiced that they may move out. The question is: Does the landlord have a case against the bank, or is the bank correct that the error rests with the tenant? have said, a tenant error?

user1977

There's nothing unlawful about the tenant opening mail addressed to their address, irrespective of whose name is on it. But (even if one expects the tenant to open the mail) also no correlation I can see between a property being mortgage-free and what the market rent for it ought to be (or entitlement to "improvements"). I can't see any great case the landlord has beyond perhaps a data protection breach

(I am also assuming that the bank is correct when they say it was sent to the property by mistake, and that they were actually aware the landlord's correspondence address is elsewhere - plenty of landlords who "forget" to tell their bank that the property is let out...).

newbieni

user1977 said:

There's nothing unlawful about the tenant opening mail addressed to their address, irrespective of whose name is on it. But (even if one expects the tenant to open the mail) also no correlation I can see between a property being mortgage-free and what the market rent for it ought to be (or entitlement to "improvements"). I can't see any great case the landlord has beyond perhaps a data protection breach

(I am also assuming that the bank is correct when they say it was sent to the property by mistake, and that they were actually aware the landlord's correspondence address is elsewhere - plenty of landlords who "forget" to tell their bank that the property is let out...).

From what I understand, the bank has used the landlord's postal address extensively for 20 years but for some reason they used the wrong address this time. It seems like the bank's final response is an apology.

user1977

newbieni said:

user1977 said:

There's nothing unlawful about the tenant opening mail addressed to their address, irrespective of whose name is on it. But (even if one expects the tenant to open the mail) also no correlation I can see between a property being mortgage-free and what the market rent for it ought to be (or entitlement to "improvements"). I can't see any great case the landlord has beyond perhaps a data protection breach

(I am also assuming that the bank is correct when they say it was sent to the property by mistake, and that they were actually aware the landlord's correspondence address is elsewhere - plenty of landlords who "forget" to tell their bank that the property is let out...).

It seems like the bank's final response is an apology.

What's the landlord expecting?

Bear in mind that whether the property is mortgaged is ascertainable from a public register, so isn't itself some sort of secret.

newbieni

user1977 said:

newbieni said:

user1977 said:

There's nothing unlawful about the tenant opening mail addressed to their address, irrespective of whose name is on it. But (even if one expects the tenant to open the mail) also no correlation I can see between a property being mortgage-free and what the market rent for it ought to be (or entitlement to "improvements"). I can't see any great case the landlord has beyond perhaps a data protection breach

(I am also assuming that the bank is correct when they say it was sent to the property by mistake, and that they were actually aware the landlord's correspondence address is elsewhere - plenty of landlords who "forget" to tell their bank that the property is let out...).

It seems like the bank's final response is an apology.

What's the landlord expecting?

Bear in mind that whether the property is mortgaged is ascertainable from a public register, so isn't itself some sort of secret.

I'm not sure, I'm assuming some goodwill from the bank.

penners324

It's a mistake by the bank. They may get £200 as a goodwill gesture.

How the landlord deals with tenant is a separate matter. Besides rent is not linked to the mortgage. If the tenant wants to move out then so be it. The landlord will probably get more ent from the next person 

ACG

Its a business transaction, there is no financial ombudsman to fall back on. 

As there is no financial detriment, there is no requirement for the bank to pay anything. The tenant wanting a discount because there is no mortgage due is irrelevant, would they be happy to pay more if the landlord mortgaged it to the hilt? You can want a lot of things, it does not mean they will get it. 

As has been said, they might do a goodwill gesture payment, but your talking £500 max, it wont be thousands. Although given its a BTL rather than a residential mortgage, it could well be less. 

saajan_12

ACG said:

Its a business transaction, there is no financial ombudsman to fall back on. 

As there is no financial detriment, there is no requirement for the bank to pay anything. The tenant wanting a discount because there is no mortgage due is irrelevant, would they be happy to pay more if the landlord mortgaged it to the hilt? You can want a lot of things, it does not mean they will get it. 

As has been said, they might do a goodwill gesture payment, but your talking £500 max, it wont be thousands. Although given its a BTL rather than a residential mortgage, it could well be less. 

That's pretty generous, I'd expect a £50 apology for creating awkwardness, which is all there is here. 

Its nothing to do with the tenant how much the mortgage is. The LL could cite market rents or fob them off with 'I financed by securing on other asset(s) or whatever, just to reduce the awkwardness. 

newbieni

I have just spoken to the landlord, it looks like the bank called today with a goodwill offer of £180 which has been accepted.

Thanks to everyone who responded.

ACG

I think that is about right. I know I said max £500, in my head I was thinking ombudsman cost but in reality with there being no option for the ombudsman, I would have said closer to £150-250 so £180 seems about right. 

When I worked in complaints, there were some that were valid and some where people were trying it on. I think this is a valid complaint but not really one that has caused any loss so any pay out was going to be more in the goodwill gesture range. 

Jemma01

Wish the tenant the best of luck, sounds like a not very decent one trying to bargain after opening something that doesn't belong to them. I would be very sorry this happened and that would have been the end. Some people are shameless.