Capital Repayment Charges

chris99

The lender is Cheltenham and Gloucester. I don't ask them to recalculate, they do it automatically - I assume that's because it causes my direct debit to change automatically and they have to inform me.

Last time I looked at changing products the product fees were such that it wasn't worthwhile bothering. Other than complaining, I can ask them to change my DD to an amount that exceeds the interest due each month. I expect they will refuse because that turns it into a repayment by the back door. I've worked out that if I have to pay it my best option is to save what I would normally pay them every month and make just 2 payments per year. As I said before, the sums involved aren't large, it's just the moving goalposts that upsets me.

Tiddler_2

http://www.cheltglos.co.uk/additionalServices.html

Their tariff of charges above implies that the charge is made because you ask for a change of term, or payment.

I would suggest that you ask them if you don't ask for either of these will they charge you the £10 fee still? If they say yes then I think that they are breaching your original mortgage terms and conditions.

chris99

Cheers. Will have a go at that as well and report on the outcome.

Urban_Tangleweed

I am in exactly the same predicament as chris99, been regularly making capital repayments to C&G but the last time (May) they said I owe them £10 for the privelige.

Discussed this over the phone, but nothing they would do, have since written to the head honcho to ask that these charges be waived as it was not what was agreed at the outset. In their defence I was told that things are "a lot tighter now" I pointed out things weren't getting any better for me either !

I will post the results of my complaint when received.

It really is shoddy how the banks treat their good customers, it seems that we have to pay extra fees now to re-imburse them for taking on bad accounts and suffering losses !

chris99

Urban_Tangleweed wrote: »

It really is shoddy how the banks treat their good customers, it seems that we have to pay extra fees now to re-imburse them for taking on bad accounts and suffering losses !

My sentiments entirely.

maninthestreet

A lender can't arbitrarly change the terms and conditions of the mortgage in this way - unless, perhaps, the terms and conditions of the mortgage state that they can.

Urban_Tangleweed

Just a quick update on what's happened - nothing !

Posted my letter of disgruntlement 3 weeks ago, and have yet to hear anything back.

We all know the banks are lousy with communication and customer service, but the ignorance so far shown by C & G on this occasion is truly astounding.

Potential customers of them should beware, but then, is any other bank better ?

If they decide to reply at all, I'll let you know, though I've a sneaky suspicion the £10.00 has simply been applied to my account.

Hope I'm wrong....................

N79

I'm in the same position with a number of C&G products. I have just phoned them and there appears to be a possible way of avoiding the charges but it is complicated.

I was told that if I telephone them every month and change the direct debit then they can take the overpayment that way.

For example, if I want to repay GBP5000 then I need to telephone them and tell them to add GBP5000 to the next (and only the next) direct debit payment that they are taking. They will do this and not charge the GBP10 fee.

This sounds like an absolutely rediculous and overly complicated way to go about it. I will be starting a complaint and I will take it all the way as the Ombudsman fee is a lot of repayment charges! Like others, I specifically picked this product because of the ability to make irregular lump sum payments.

Keep us updated on your complaints.

N79

Urban_Tangleweed

Update !

Had a letter yesterday saying they were sorry it has taken so long to get back to me about my complaint, but they will look into it, and try to get back to me within the next 21 days.

Only just over a month to tell me they will try to do something during the next month, fantastic eh ?

robin53

I was wondering if anyone has had any luck yet with getting the £10 fee waived.

I was also astonished to recieve a letter stating a £10 non-refundable fee will be added to my account after I made a capital repayment. When I phoned the call centre the girl said she might be able to get the fee waived for me as I was not aware of it, but after speaking to her supervisor she came back and said I had been notified about this with a leaflet containing tables of charges which came with my statement in January, but they had postponed introducing it until 1st May to give people time to receive their statements. She said for future payments to get round the fee if I pay less than £1000 at any one time then there will be no charge although it does not mention the £1000 in the leaflet so this all seems a bit arbitrary to me.

Like other people I chose this mortgage because there were no limits or charges on repayments of capital and feel like I am being ripped off!