Thread: cheltenham and gloucester

Originally Posted by fox

I took out a mortgage with Cheltenham and Gloucester in 2002 it was a 5 year term and the first 3 years were discounted. I paid it off after 3 and a bit years and had to pay an early redemption fee/penalty.

I understand that the C and G will have lost out on interest that I would otherwise have paid if I kept the mortgage but I am sure they will have either invested the lump sum I paid back or lent it to someone else so I do not see how they could have suffered any actual loss or costs.

Is it possible that this type of charge is a penalty and covered by the same rules as bank charges in which case could I claim it back and has anyone else claimed back this type of charge and won.

A few are trying all at different stages.

Hi There this was posted by someone else. Interesting reading. It's worth going for. I'm chasing BBBsc and Halifax over ERC.

3. A term in a mortgage agreement which requires the borrower to pay more for breaching the contract terms than actual costs and losses caused to the lender by the breach (or a genuine pre-estimate of that) is likely to be regarded as an unfair penalty and to be unenforceable both at common law and (in a consumer mortgage) under the Unfair Terms in Consumer Contracts Regulations. A redemption charge may be regarded as a penalty even if it is expressed as the price for exercising a right rather than a consequence of breaking the agreement.

Gary


Prelim letter sent 08/ 08/06 for £663 ( Halifax )
letter from Halifax rec 09/08/06 std reply
lba sent 23/08/06
S.A.R - (Subject access request) form sent 11/08/06 yorkshire bank
Rec letter asking for certified id
S.A.R - (Subject access request) form sent 11/08/06 capital one
S.A.R - (Subject Access Request) form sent 11/08/06 halifax ( chq cashed 17/08/06 )
S.A.R - (Subject Access Request) form sent 12/08/06 Barclays
letter from Barclays rec 17/08/09
S.A.R - (Subject Access Request) form sent again 18/08/06 Barclays
Rec statements from Barclays 19/08 prelim sent for £650 23/08/06
S.A.R - (Subject Access Request) form sent BBBSC 21/08/06 ( ERC )
S.A.R - (Subject Access Request) form sent Halifax 21/08/06 ( ERC )( chq cashed 24/08/06 )