Early Repayment Charges Expiry Date

re90518

hi all,
I wander if somebody had the same experience:

On the 20th May 2008 we have repaid in full our mortgage with Britannia, after our fixed 5 years term expired.

Our product summary statement, clearly indicate as Date ERC Expires as 20 May 2008, so in agreement to this and with the clear instructions given by phone to my wife from two of Britannia Customer Service people we have proceed to pay with a CHAPS-Same Day Transfer on the 20 May 08.

Having checked the final figure (they quoted me over the phone) after payment (stupid me!!! :mad: ) we have noticed that we have been charged the Early Repayment Charges. Today I have phone Britannia Customer Service for clarifications, and in effects they confirmed me that we have been charged the ERC fee, with the reason that 20th of May was the last day of contract and we should have paid on the 21st, charging me 2500 pounds for 1 day...if they are right...

By definition, an Expiration Day is the Date on which an agreement, appropriation, contract, facility, offer, right, etc., ceases to be effective or operative; therefore, in my opinion we were in our right to pay on the 20th and we should not have incurred in any Early Payment Charges in doing so.

can anyone tell me if I am right?

EXPAT_2

If it were me, I would not expect to pay the ERC. I would get on the phone first thing Tuesday & demand it back. I'm surprised you didn't check the figures first!

m1ntie

re90518

I find this quite outragous, the customer services dept should have warned you about the ERC. However, technically I fear they are probably correct. You made the payment inside the fixed period, therefor the charge applies.

I would appeal to a senior manager and if you get no joy, go to the financial problem people at one of the national newspapers - The Sunday Times is very good.

Good luck

re90518

Thanks all, you are right, I should have checked before.. The problem is that we are leaving abroad and we did all over the phone. We made sure we didn’t want to pay the ERC, and they assured us (over the phone) that we wouldn’t. Of course we don’t have anything written.
I’m waiting for a reply to my complain in the next 5 days.. but I think that the Expiry date argument is quite strong in my case. As with car insurance will not cover you in the expiry date.. Usually you have to renew it the day before.

re90518

Just to let to know, after I wrote them a letter, I got a call from a Britannia senior manager to tell me that a cheque was on the post with the refund of the ERC charges on the basis that a day earlier (for them tecnically the deal would expire at 24hr of the expiration day) shouldn’t change the fact that I did complete my full fix term.
I’m very happy about how professionally and understanding they were with the dealing of this matter. I will definitely go back to them with my next mortgage.