Disappointing Mortgage Reclaim Outcome

[waronwant]

I had a mortgage with GMAC, and due to falling ill with a depressive illness, I fell into arrears. It was a horrible, serious situation, and I kept bringing the account up to date, then falling into arrears again. GMAC were far from helpful, and were so threatening and unpleasant when I contacted them, that I basically just didn't want to speak to them at all - what was the point, when they were just going to threaten me, rather than try to reach a resolution?

 

I sold the house in 2007, and after paying them and another loan company back, I was left with nothing, but at least no debts. I decided to write to them regarding the arrears, and after two letters sent to them requesting statements, still had no reply. So I went to the FOS. They wrote to them, and GMAC still didn't reply, so they took on my case. A couple of weeks later, GMAC contacted me, offering £555. I refused and let the FOS carry on with their investigation. The ombudsman took it on in July of last year. (This was after them losing the online application I had made previously, meaning I had to make a new application with them.)

 

I have had a couple of conversations with the Adjudicator at FOS to give more information, and during the last conversation I asked him about unfair arrears charges, and whether the mortgage company could only charge for breach of contract the amount that this breach had actually cost them. He refused to answer that question.

 

Since then, I've just been waiting on a decision. What he told me at the time was that he was awaiting information from GMAC - I took the information to be proof of their costs, etc.

 

I've just had a letter this morning, advising that the Adjudicator has decided that their offer of £555 was not only fair, but GENEROUS!

 

He states that GMAC have "offered" to refund £315 for "non payment by direct debit fees, £39 of a solicitors instruction fee and interest on the above amounting to £28.32."

 

He further states: "You complain that the charges GMAC has applied to the account are unfair and excessive. However, in light of the above," (referring to the offered refund) "I am persuaded that the FSA's action has addressed this and do not believe I should consider this further. It should also be noted that it is not the role of the Financial Ombudsman Service to set a lenders tariff."

 

"Turning to the application of arrears management fees, I consider that an account will require additional administration because of arrears caused by missed payments. I do however feel that the application of arrears management fees during months when the full contractual monthly payment is met, to be unreasonable. For this reason, GMAC offered to refund four arrears management fees within its letter dated 28 August 2009, amounting to £200."

 

I know my account was a mess, but it's like they think to themselves "oh look! This person is on their knees - that means we can bleed them dry! Goody!"

 

I'm livid, to be honest, and would greatly appreciate advice as to whether to accept this, or to look further into the arrears fees, and whether they are excessive and unfair, or not.

 

Help!

[waronwant]

Just a little addition to this. I've just remembered that I received a letter from GMAC two days ago, dated 20th November 2009 - an offer of a refund to which the FOS refer to in their letter which I received today.. I was a bit non plussed when I opened it the other day, but it's clear now that the FOS are under the impression that it was sent last year, when the FSA made that decision against them.

 

Tricky, tricky, tricky!

[bustthematrix]

Hi W

 

Here we go. Looks like the link worked eh?

 

If you have not done so already, you'll first want to peruse threads such as

 

http://www.consumeractiongroup.co.uk/forum/other-institutions-successes/19501-zoot-halifax-mortgages.html

 

http://www.consumeractiongroup.co.uk/forum/mortgage-companies/232181-gmac-what-can-i.html

 

http://www.consumeractiongroup.co.uk/forum/mortgage-companies/11819-guidance-notes-incomplete.html

 

http://www.consumeractiongroup.co.uk/forum/oft-test-case-updates/248268-sheriff-puts-bank-scotland.html

 

http://www.consumeractiongroup.co.uk/forum/mortgage-companies/32610-saraounia-simpleloans-gmac-rfc.html

 

to ensure you have a solid grasp of why these charges are unfair and therefore reclaimable at law. PLEASE try and read through all these threads. There's some fluff here and there but then that's how you sort through to get the nuggets of info you need. There's quite a bit on this particular matter.

 

Basically, you need to itemis ALL the charges you deem you'd like to claim. Then you should consider adding on the contractual interest you have paid on top of that. This gives you a sum that you have already paid to the lender. You then then add statutory interest on top of that amount.

 

Is the account closed or still open?

[waronwant]

Thanks, B.

 

There are a couple of threads there that I haven't looked through yet, so thanks for that. I've been looking for an actual copy of contract law online so that I can start to plough through it, but no joy as yet.

 

I don't think I'm going to accept the offer though, so that extra information should help me get started, because it's basically from scratch again! Grrr!! Lol!

 

I sold the house in 2007, and paid the mortgage balance, so no, I no longer have an account with them.