Mortgage Product Fees

jem16

worcester1 wrote: »

Not everyone jem16

people do fall ill, relationship break-up, lose their jobs and many other unforseeable events all of which can result in;

a) not able to meet their payments
b) accounts resulting in default

Now what these people need is not having extra charges added to their accounts and their debts excalating.

I am "one of those people". My husband was killed in an accident over 5 years ago which left me with two children to look after and the sudden loss of my husband's salary.

For such reasons these charges are unfair - Whilst you may be able to ignore a single charge years ago - these unfortunate people cannot.

They do what I did. Go and see the people involved and work out something manageable which avoids the charges and debts escalating.

So what do you suggest they do when the system allows them to reclaim these charges to offset against their total debt owed.

Not allow themseleves to get in that situation in the first place?

Get off your high horse lady, that rosy smell in your world does not extended to every other person's world

It's not me who is on my high horse and I doubt many would agree that my world has been all that rosy of late.

UK007BullDog

How did people manage before there were overdrafts and bank accounts were one could get more money than one had going in?
There were no credit cards, no personal loans and to get a mortgage was nearly impossible.
People managed somehow, even then people had accidents, breakups, sickness.....

So are we not better off now? People need to learn to save, I know its hard as I myself do not have enough savings, I can just about survive 2 months without getting paid. But people need to learn not to rely on the banks in case money gets tight, or if they know its coming to make sure they have prepared themselves and their accounts for the shortfall. Kids need to be educated that saving is important. Consuming has become a social part time, a national sport.

As mentioned before the banks will find a way of charging us in other ways which will be unchallengeable as they have scores of top legal eagles to ensure that any new services with charges or service costs will be enforceable in the future. Mark my words, it will get worse once the banks start to recoup their sub-prime losses, dropping shareprices, not performing funds..... we are the ones going to pay for it, one way or another, and those who always managed their finances well will start to pay.

Dan_Collins_2

As ever a simple post has gone all over the place and ended in the wrong place for the OP. I think we may need some general chat forums or a chat room!

As for the OP's question. The fee is not unusual and it was, is and will continue to be standard practise. Although you may have found a lower fee on a product the rate may have been higher. This is why you need a good broker! LOL

UK007BullDog

I would like to mention that my reply to the OP's was the very first and it was short and to the point. Maybe I need to apologise as it was quite short. But the fact was that the OP did ask in such a way that if we said yes he can claim that the OP would go and do that.

The OP did ask a question which was asked many times before. We should take more care in answering the questions as it might put the OP off from ever asking questions again. If one does not want to answer a question then just ignore it and move on to the next question. Was my answer not enough? Theoretically it answered the question and there was no need to answer it again and again. Some being somewhat cynical and I am to blame for those as well at times, we are just humans in the end.

I fully support a sticky FAQ where all basic questions are answered. We can then guide the person there.

I also find that some posters on here in the finance section of this board have the tendency to post answers which are quite wrong or lets say very negative. These answers could put the poster in dire straits more than they are already in. That is why it is vital for us "finance professionals" to be here. I mean we are not allowed to tout for business, so that means we are here because we are the helpful sort of people. Going by the hundred of thousands of members on this website there are just about a dozen regulars and another dozen or so non-regulars here to help with our knowledge. Too bad that people mostly do not come back to tell us what happened when we helped them, it would be nice to hear the outcome. And I would like you to know that on the broker board where the finance types hang out to support one another we are "hated" for being on here. So why are we putting up with 2 walls of hate? Because we care and want to help. And we learn as well. At least I have.

worcester1

Jem16

I think both you and DMG 24 are missing the point here. The people who have successfully claim their charges should not be blamed and made feel bad in anyway.

The problem here is the system or the lack of it. If the system was robust and clear enough than no-one can exploit it. The fact that people have successfully claimed back their charges goes to show the overall problem.

Your rosy world seems to me like utopia - the Garden of Eden before Adam & Eve were banished. The real world is nothing like that. Can you honestly expect people who have overdrawn to no fault of their own due to unforeseeable events - presented with a window of opportunity to make some money by using this loophole?

Don't quote me on the stats here, but how many people out there will ignore such an opportunity to make some few bucks legally with only a couple of letters and possibly a single phone call to accept a settlement figure.

Once again - IT'S THE SYSTEM AND NOT THE PEOPLE TO BLAME.

Talking about banks not making people ill - also from someone who suffered such tragedy - I am sorry for your lost by the way. Off all people you should know how hard it can be for some people to cope with devastating change of financial circumstances. And no not everyone can triumph like you did – some people will give it their damn hardest but fail in the end.

Now imagine yourself in that situation and someone says to you send a couple of letters to your bank and claim back your last six years of charges. In the real world the majority of people will do exactly that and you can blame them all you want - but they are right to do so.

Tighten the system and it shall not happen!

This has nothing to do with people with no or very little money - it's a loophole and they are exploiting it.

The very rich use a similar loophole to avoid paying certain taxes, Capital Venture companies exploited the same system to pay less tax than your average cleaner. Worst of all they are doing this to the government and the taxpayer which means you and me.

Now I don't see the government going ahead punishing the rest of off because Mr. Ken bates or My Chelsea football club owner decided to exploit this loophole. They are not saying we will no longer provide free service to you the public, we are going to suspend or get rid of public spending because some one percentile (minority) of tax payers are using this tax avoidance loophole.

Can you please enlighten me - how is the average Mr. Joe Bloggs claiming back his bank charges differs from the Mr. Joe Billionaire Bloggs tax avoidance expert.

One thing they have in common is that they are both using a loophole and until that's closed they will continue exploit it. You and I can debate on this forever but it will still continue happening.

dmg24

The system is quite clear. If you cannot read, or if you are stupid enough not to read the terms and conditions relating to a financial product, then you should not be allowed to borrow money (either through a mortgage or loan, or an overdraft facility).

worcester1

dmg24 wrote: »

The system is quite clear. If you cannot read, or if you are stupid enough not to read the terms and conditions relating to a financial product, then you should not be allowed to borrow money (either through a mortgage or loan, or an overdraft facility).

Then how can they successfully claim back the excessive charges? The Credit companies reduced theirs to £12 now. If it was that ridged how come most peolpe managed to successfully claim the charges even though it was not in the t's and c's. May be they are cleverer than you give them credit for.

At the end of the day they are lot smarter than you and I - because they have exploited a loophole that you Mr clever pants haven't got the brains to comprehend

Dan_Collins_2

Hang on, why are we talking about claiming fees and charges back? The fee the op mentioned was a product fee, he/she had a choice and agreed to a fee that would have been documented clearly in the KFI.

This thread has gone the rails, and threads keep going this way.

dmg24

Dan_Collins wrote: »

Hang on, why are we talking about claiming fees and charges back? The fee the op mentioned was a product fee, he/she had a choice and agreed to a fee that would have been documented clearly in the KFI.

This thread has gone the rails, and threads keep going this way.

... and worcester1 has even resorted to namecalling, a sure sign that a person has no idea what they are talking about!

The banks have paid up until now in case the courts set a precedent, and because the amounts that have been paid out voluntarily are so insignificant in the bigger picture of things!

Whilst I have sympathy for those that have financial problems, anyone that gets themself into such a mess as to incur large amounts of bank charges is certainly not smart!

Noz

Agree with you Dan