Confused by letter from Mortgage Company

[Jonesy81]

Hi I am new to this site so please forgive me If i have posted this to the wrong thread.

Myself and my husband have a Mortgage with Kensington which we have had since 2007 when my husband was self employed.
We did get into some financial difficulties manly due to cash flow but always paid our mortgage, sometimes 3/4 months late.

We have had a letter over the weekend saying as follows

As part of a recent assessment of your account we identified that your balance was incorrect, As a result some of the notices and statements which we were required to send you under the CCA was affected.

Please accept our apologies and our reassurance that changes have been made to our procedures and controls to prevent any occurrences.

In order to rectify this we have adjusted the balance on your account and recalculated the interest charged to you. This has resulted in a credit of £8,648.34.

The letter then goes on to explain how the credit is broken down but I do not fully understand what this means?
it states that the refund includes default sums and interest and that the error ran from 2008 - 2015

Could someone shed any light for me please?

They have now told us our new balance but i would have rather have had the money if I am owed it rather than a credit to the account.
I will say since 2011 our situation is fine and my husband has a new job so money isnt an issue but between 2007 - 2011 we were always a month behind but did pay them

Thanks
H

[Debt Camel]

Re: Confused by letter from Mortgage Company

They are saying that there was something wrong with their system which recorded an incorrect balance for you so they charged you more interest than they should have. This may have been linked to the fact you had late payments, but that wasn't mentioned in the bit you quoted.

Did they break down the credit into years? If this was mostly in the 2007-11 period when you were struggling, I am wondering if you could claim any additional compensation. For example if you incurred higher borrowing elsewhere, or default charges elsewhere because you were struggling to repay mortgage arrears that had been incorrectly calculated?

It is reasonable of them to set off the credit against the mortgage debt I am afraid.

[Jonesy81]

Re: Confused by letter from Mortgage Company

hi

it does not mention anything about a system error. Im not sure if its relating to the millions Kensington and GMAC were fined for over charging customers default fine etc.

I have rung kensington and all they can tell me is that if I have any queries i have to write to a specific team.

They did not break down the credit into years just a simple breakdown.

This is the breakdown

PLUS COMPENSATION £925.25
LESS 20% income tax on the 8% simple interest per year £4.21
PLUS Interest and Default Sums £7,712.29

TOTAL £8.648.34

The amount doesn't even match up correctly.

The letter then goes on to day

As a result of any adjustments and credits your balance as of the 20/11/2015 is £8,455.13

During a review of your account we noticed that you had made an over payment on your account of £401.12 this has now be added to the adjusted balance.

We are in the process of reassessing the data which has been submitted to credit reference agencies to ensure that your file is correct.

Its all a bit confusing to be honest!!!

[Debt Camel]

Re: Confused by letter from Mortgage Company

I suggest you write back to them and ask for a breakdown showing how much you actually paid in each year from 2007 and how much they have now calculated you should have paid in each year. That will give something to work on - all I can say from the above figures is that the tax charged is surprisingly low for that level of refund.

[TINKEY2]

Re: Confused by letter from Mortgage Company

Hi I am new to this site so please forgive me If i have posted this to the wrong thread.

Myself and my husband have a Mortgage with Kensington which we have had since 2007 when my husband was self employed.
We did get into some financial difficulties manly due to cash flow but always paid our mortgage, sometimes 3/4 months late.

We have had a letter over the weekend saying as follows

As part of a recent assessment of your account we identified that your balance was incorrect, As a result some of the notices and statements which we were required to send you under the CCA was affected.

Please accept our apologies and our reassurance that changes have been made to our procedures and controls to prevent any occurrences.

In order to rectify this we have adjusted the balance on your account and recalculated the interest charged to you. This has resulted in a credit of £8,648.34.

The letter then goes on to explain how the credit is broken down but I do not fully understand what this means?
it states that the refund includes default sums and interest and that the error ran from 2008 - 2015

Could someone shed any light for me please?

They have now told us our new balance but i would have rather have had the money if I am owed it rather than a credit to the account.
I will say since 2011 our situation is fine and my husband has a new job so money isnt an issue but between 2007 - 2011 we were always a month behind but did pay them

Thanks
H

Hi

You say this is a mortgage? is it 1st or 2nd as Kensington are referring to CCA which would make it a 2nd charge.

Thanks

TINKS XX