morgage exit fees reclamation Need help please

[j1fbo014]

we discovered that our mortgage company has made an error charging an exit fee which shouldnt have applied to us when we remortgaged with the same company 6 years ago.

We have a final offer from the mortgage company, and it sounds good, but the company dealing with the claim for us want to charge us 29.5% on everything to do with the settlement. This includes the account adjustment which will occur after it has been finalised. Can they do this? Our mortgage company have stated in the offer letter that any account adjustment balance should not be considered for compensation. But the company dealing with it have said that their charge will stand.

The way i see it we have two options. Accept the offer in full, but tell the company dealing with it that they will only get paid on the offer part and not the account adjustment part after the offer is finalised. or we can cancel the compliant against the mortgage company entirely. If we cancelled the complaint against the mortgage company, would we still be liable for fees to the company dealing with the compliant for us?

[Paul210]

Re: morgage exit fees reclamation Need help please

we discovered that our mortgage company has made an error charging an exit fee which shouldnt have applied to us when we remortgaged with the same company 6 years ago.

We have a final offer from the mortgage company, and it sounds good, but the company dealing with the claim for us want to charge us 29.5% on everything to do with the settlement. This includes the account adjustment which will occur after it has been finalised. Can they do this? Our mortgage company have stated in the offer letter that any account adjustment balance should not be considered for compensation. But the company dealing with it have said that their charge will stand.

The way i see it we have two options. Accept the offer in full, but tell the company dealing with it that they will only get paid on the offer part and not the account adjustment part after the offer is finalised. or we can cancel the compliant against the mortgage company entirely. If we cancelled the complaint against the mortgage company, would we still be liable for fees to the company dealing with the compliant for us?

you would need to check the terms of the CMC in question but assuming it works similar to other financial claims their fee becomes due at the time of a reasonable offer, irrespective of whether you subsequently acept that offer or not. In ppi cases the MOJ take a very dim view of CMC's charging a percentage of reduction of future premiums (i.e. future account adjustment) and I would imagine the same stance would apply on mortgage cases as well. It might be worth ringing their helpline (0845 450 6858 / 01283 233309)
For my mind a responsible CMC should only ever charge their % based on the 'cash' redress part of the offer, not the future payments adjustment.