Mortgage Penalty Charges Claims

[Emerald]

Re: Mortgage Penalty Charges Claims

They charge £80 a pop (£30 returned D/D plus £50 arrears).


The £30 can be claimed - I wouldnt say the £50 arrears are - that will be the build up of interest between when you should have made the payment to when u do. IMO anyway.

No they carry on charging interest on the amount owed, the £50 is just another penalty.

GMAC have been pretty hard to claim from, but have paid up before a hearing.

You will have a indemnity in the T&C, but I haven't heard of them using it for charges. That doesn't mean they won't though.

[Amethyst]

Re: Mortgage Penalty Charges Claims

Ahhh its a arrears charges, not actual arrears then.

Yep, interesting that the unfair terms guidelines feature indemnity clauses rather heavily.

Still take this through FOS not court though.

[jax007]

Re: Mortgage Penalty Charges Claims

Thanx guys

The £30 can be claimed - I wouldnt say the £50 arrears are - that will be the build up of interest between when you should have made the payment to when u do. IMO anyway.

Yes the £50 fee is an arrears fee - another penalty charge as far as I am aware as Amy's says. It's charged every month your account is in arrears.

jax
------------------------------- merged -------------------------------

Yep, interesting that the unfair terms guidelines feature indemnity clauses rather heavily

.

What do you mean by this Ame?

[borgbaiter]

Re: Mortgage Penalty Charges Claims

hi

i believe its these new guidlines
http://www.legalbeagles.info/forums/...ad.php?t=11094

lots of it and havnt had time to look myself :-)



Borgbaiter

[strangewayofsavin]

Re: Mortgage Penalty Charges Claims

Hi Jax007, when you received the £30 + £50 charges, did you have to pay them the following month, or was the charges added to the outstanding mortgage account?

[borgbaiter]

Re: Mortgage Penalty Charges Claims

hi

ive been asking the chelsea for over a year how mortgage charges are applied to my account in my own case and they simply dont answer and ignore the question. in the end i had to assume they were added to the mortgage on the date of the notification letters.

id be interested to know the answer to this too, from anyone.


Borgbaiter

[strangewayofsavin]

Re: Mortgage Penalty Charges Claims

In my case, the lender added the charges straight to the mortgage, and did not give the option of paying them off, this was not in the original terms and conditions, therefore (technically) increasing the loan (mortgage), without our consent, or a new agreement.
The lender was part of the GE money group (surprise surprise), and i am still looking into it.
SAR done, info received and collated, but the cogs turn slowly.

[borgbaiter]

Re: Mortgage Penalty Charges Claims

hi

i suspect this is the norm then. does that mean mortgage interest is charged from that day forward do you think? sounds like compund interest is added to the debt from the time of the charge to me?


Borgbaiter

[argentarius]

Re: Mortgage Penalty Charges Claims

Thanks for clarifying, jax. I thought £1,000 sounded more like an ERC than arrears administration charges - sincere apologies.

[scoobydoo]

Re: Mortgage Penalty Charges Claims

Back in the good old days when I worked for a soon to be dead as a parrot BS :violin:We did not charge eXtra when a payment was missed- unless re-possession order had been taken.

Lets face it, this is hitting a person when they are down and the BS are already charging interest on the debt - which is reducing at a slower rate so they are gaining anyway.

[jax007]

Re: Mortgage Penalty Charges Claims

Hi Jax007, when you received the £30 + £50 charges, did you have to pay them the following month, or was the charges added to the outstanding mortgage account?

No they don't have to be paid - in the past I have paid the arrears PLUS the fee because I am sure I have read somewhere that the charges have the effect of increasing the overall loan and the term. But it may be different from lender to lender(??)

Thanks for clarifying, jax. I thought £1,000 sounded more like an ERC than arrears administration charges - sincere apologies.

Hey ... no worries!

[jax007]

Re: Mortgage Penalty Charges Claims

Am attaching copies of correspondence at Budgie's request.

Hopefully the file isn't too large ... oh for a scanner like this at home

jax

[strangewayofsavin]

Re: Mortgage Penalty Charges Claims

I agree scoobs, but if the original agreement was for interest calculated on a £120,000 mortgage, if the debitor has no ability to pay off 3 of these charges, then the mortgage agreement is extended to £120,240, from which the interest rate as agreed is now increased, this may seem trivial, but to someone who has a non perfect credit rating, that has an interest rate of 3.5% over base rate it all adds up.
3 bad months means that the capital rate can now be calculated on a £120,00 mortgage, interest can now be calculated on £120,740, which is as bad as a 1/4% rise in the Libbor rate.
And as most mortgages are interst rate & Libbor rate, with these penalty charges, and increasd libbor and interest rates a monthly payment of £875.00, increases to £996.50 per month, instead of £925.00.

[Budgie]

Re: Mortgage Penalty Charges Claims

Thanks for posting copies of your letters Jax.

As I advised you earlier I have a GMAC claim at a very similar stage to your own.

I suggest we both progress these claims at the same time and use the same approach wherever possible.

I will start my own thread and post up my documents. I have a copy of the mortgage terms and conditions and althought his does contain a paragraph regarding legal costs and expenses but it's nothing to worry about as far as a claim for return of unlawful charges is concerned.

Did you manage to find a copy of the terms and conditions covering your own mortgage with them?

I think first step for both of us will probably be a final LBA ( I certainly need to do one as my last communication with them was a year ago ).

Let me get my own stiff posted up and we can plan our strategy.

Rgds Budgie

[Amethyst]

Re: Mortgage Penalty Charges Claims

althought his does contain a paragraph regarding legal costs and expenses but it's nothing to worry about as far as a claim for return of unlawful charges is concerned.

I disagree babe - although with the new focus on the indemnity clauses its worth looking into further - but only go to court if you can afford to pay costs until a decent case is established. Otherwise stick to FOS.