Mortgage lenders arrears admin charges

Lancs_Debt_Adviser

During a recent local debt advisers meeting we discussed the issue of mortgage lenders imposing high administration charges on customers in mortgage arrears. Typical example would be a borrower who is in arrears, makes a repayment arrangement with his lender to make contractual mortgage payments plus an additional payment to reduce arrears. Some lenders apply a monthly charge to administer this 'special arrangements', often the charge is higher than the arrears repayment and therefore the debt is increased.
Whilst as individual advisers and advice services we are challenging lenders over these charges, we would be interested in hearing from individuals, or advisers, who are, or have, challenged a lender over this type of charge.

Many thanks in anticipation.

Noz

Very much at your own risk: http://forums.moneysavingexpert.com/showthread.html?t=591736

Lancs_Debt_Adviser

Thanks Noz - as you can tell my site search was less than thorough!

StaceyAKelly

I am a victim of this charge!!! I pay £60 odd pound of my arrears each month and £50 gets taken away for so called admin fee!! how frustrating, I will be in arrears for years before I can clear them!

Lancs_Debt_Adviser

Don't let them get away with it Stacey! use the link above to help you challenge the lender. :j

dunstonh

Although prepare to be rejected. There is little evidence of success on this unless the fees have been going on a very long time.

Lancs_Debt_Adviser

dunstonh wrote: »

Although prepare to be rejected. There is little evidence of success on this unless the fees have been going on a very long time.

Longevity doesn't make it right or acceptable. Banks/credit cards had been overcharging fees for years until customer started taking action.

Make a formal complaint to your lender Stacie, if the outcome of your complaint is unsuccessful lodge a complaint with the Financial Ombudsman Service, there is no cost and nothing to loose - good luck!

Noz

Lancs_Debt_Adviser wrote: »

Longevity doesn't make it right or acceptable. Banks/credit cards had been overcharging fees for years until customer started taking action.

Make a formal complaint to your lender Stacie, if the outcome of your complaint is unsuccessful lodge a complaint with the Financial Ombudsman Service, there is no cost and nothing to loose - good luck!

The problem is that folks have been taking action with these fees and failing

jonesMUFCforever

Another way of looking at it is why should customers who make repayments on time pay higher rates to subsidise those who don't?
Before any sob stories appear on here every lender will offer policies that pay out on illness or unemployment and if those are considered too expensive there are plenty of alternatives on the market easily accessible on the internet.

dunstonh

Make a formal complaint to your lender Stacie, if the outcome of your complaint is unsuccessful lodge a complaint with the Financial Ombudsman Service, there is no cost and nothing to loose - good luck!

There is no cost for using the FOS at the moment but there have been proposals to stop that. Opportunistic complaints or frivolous complaints are a major concern at the moment and if people keep doing them then you could see the end of the ability to complain at no cost. The FSA already has one proposal to come in during 2009 which will remove the ability to complain to the FOS. The Conservatives have proposed others if they get into power.

The FOS wont overule charges when they are being charged in accordance with the published tariff and that tariff is fair. Currently, arrears charges are considered fair.

The reason you dont see loads of posts on this subject as that virtually all those that have tried, have failed. Basically, because they are not unfair.