Coventry B.S sends threatening letters.

happyolddog

I was astounded last week to get a letter from the Coventry building society about missed payments on my mortgage.
Two years ago I went into my local branch of the Cov B.S and had a chat about why I was on the privelege rate of 8% (not much of a privelege) when they were offering new customers a 5.29% three year fixed rate. I said I wanted that rate as I felt they were taking the mick just because I was a good customer, who always paid on time. After a long discussion I got the three year fixed deal and they waived the buy in fee (it pays to argue).
Two years on and after making overpayments every month to reduce the capital I got a letter. You have not paid a mortgage payment for two years and your account is in arrears.
I was very confused and my wife was starting to worry. I went on the phone and got fobbed off, so I went to the local branch to be told; overpayments come off of the capital and are not classed as a mortgage payment, so after paying £24,000 in two years I was sent this letter. I am still quite confused, is this normal practice or are the Coventry B.S on another planet. I did ask that an apology be sent to my wife for the upset caused, I guess that was too much for them to handle as well, because nothing has arrived to date. Well I have £11,000 outstanding on my mortgage and plan to clear that in the next 12 months and send the Coventry B.S to Coventry.

silvercar

I can't believe any BS would allow two years of arrears (in their eyes) to build up without making contact. Sounds like an admin error.

I always find their call centre very helpful and knowledgeable, why not give them a ring?

"tlc not plc" in action????

kje_2

I also had the "privilege" of being on their privilege rate. I then changed to their base-rate tracker (repayment mortgage). I started overpayments on this mortgage but always made the overpayment separate from the normal monthly mortgage payment. Have you been making just one payment each month of £1000 ? Maybe, they have got confused and have taken this as 100% overpayment and not split between overpayment and mortgage payment ? Still, two years is a long time for them to notice/query this !

maninthestreet

I'd like to see the Coventry B.S in a court of law trying to re-posses the property in question and explaining their 'over-payment' logic to the judge - the case would get laughed out of court.

minimike2

Theres something missing here.

How were you making you normal mortgage payment? Direct Debit?

happyolddog

kje wrote: »

I also had the "privilege" of being on their privilege rate. I then changed to their base-rate tracker (repayment mortgage). I started overpayments on this mortgage but always made the overpayment separate from the normal monthly mortgage payment. Have you been making just one payment each month of £1000 ? Maybe, they have got confused and have taken this as 100% overpayment and not split between overpayment and mortgage payment ? Still, two years is a long time for them to notice/query this !

Exactly as you say, I would just walk into my local branch and hand over the cheque. I was on the phone to them just now and they said I need to give two cheques, one stating mortgage payment, the other capital repayment. I find this to be totally stupid.

Still no apology for the threatening letter though.

maninthestreet

So are you paying manually by cheque each month???

silvercar

So after two whole years of no contact, they suddenly say that you are 2 years in arrears??

olly300

happyolddog wrote: »

Exactly as you say, I would just walk into my local branch and hand over the cheque. I was on the phone to them just now and they said I need to give two cheques, one stating mortgage payment, the other capital repayment. I find this to be totally stupid.

Still no apology for the threatening letter though.

Write a letter to their head office complaints via recorded delivery, briefly explain the situation and state what exactly you want.

At the end of the letter state if they do not resolve the issue you will take them to the financial ombudsman.

I'm sure they will be very happy to apologise to you rather than pay £400 or whatever for an investigation.