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givitback v Alliance & Leicster (ERC) ** WON **


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Well guys, I've been following this section of the site with great interest. I sold my house and redeemed my A&L mortgage in August 2005. I was in a 2 year fixed rate which started in March 2004 & redeemed early 17 months later at a cost of £2014.60.

 

I copied Zoot's letter (fantastic Zoot, thanks) requesting that amount plus £60 of late payment fees back & have today received the following reply:

 

"I have noted everything you have said but I am afraid we do not agree with your views on the legality of the charges you highlight in your letter. As such, I regret that it will not be possible to agree to your request to refund the charges to you.

 

The fees totalling £60 relate to unpaid direct debit payments and have been applied in according with A&L's tarriff of charges.

 

The Early Repayment Charge of £2014.60 has been applied in line with the terms & conditions of your mortgage which you accepted. I enclose a copy of your mortgage offer & have highlighted the part that explains about the repayment fee period*." (also noted below)

 

Highlighted bit from the Mortgage Offer document in exact words:

"The repayment fee period means the period of time starting on and including the day of funds release and ending after the following periods have expired.

 

The repayment fee means a sum of money equivalent to 180 days (ie. approximately six months) interest at the basic rate during the period starting on the day of funds release and ending after 2 years.

 

 

Now, I'm assuming that the repayment fee is the £2014.60 ERC. Frankly, I'm confused. I'm quite clear on the £60 charges but I'm not quite sure where to go next with the ERC. Any advice would be gratefully received.

 

(Note: Statement description is Early Repayment Charge £2014.60)

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Yes, looks like the ERC is £2014.60...not quite sure what you mean where to go? Do you mean how to word your letter?

Please note that I am not a legal expert and all advice given is without prejudice and is purely my opinion only.

 

** Nationwide - £1821.15-PAID IN FULL - Aug 06 **

** Halifax Mortgage -£390 - PAID IN FULL - Nov 06 **

Lloyds TSB - MCOL issued 09/03/07 - £2953 + costs - ON HOLD....

 

 

 

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Use the template LBA from the library just make appropriate changes to reflect that it is ERC and late payment fees.

 

There is nothing really to add at this stage. You might want to incorporate a bit to respond to their letter by stating that the fact that you agreed to the terms will have no bearing on whether they would be classed as a penalty charge in court of law.

 

Good luck

 

Zoot

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  • 2 weeks later...

OK, so the A&L have replied to my LBA with a standard response which repeats what they said before ie. that they don't agree with me. A couple of questions?

 

I haven't had a breakdown of how their fees are calculated, do I need this? (They referred me to a section in the T&Cs which explains the %age that they take as an ERC.)

 

Do we claim the whole fee anyway, regardless of their actual costs, the same way we do for bank charges?

 

Should I now just file a MoneyClaim?

 

Hmm, that's 3 questions!

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I haven't had a breakdown of how their fees are calculated, do I need this? (They referred me to a section in the T&Cs which explains the %age that they take as an ERC.)

 

 

If they have not explained how the ERC equates to a genuine estimate of their losses then likelihood is its a penalty.

 

Do we claim the whole fee anyway, regardless of their actual costs, the same way we do for bank charges?

 

 

Yes. Its either a penalty clause unenforceable in its entirety or a liquidated damages clause in which case valid. If it is a panalty they may then claim for any actual loss they have in fact occured, but would need to plead and prove each loss and this would be subject to s.4 UCTA.

 

Should I now just file a MoneyClaim?

 

 

 

If its been 14 days since LBA yes.

 

Best of luck

 

Zoot

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  • 4 weeks later...
  • 4 weeks later...

The Alliance & Leicester had until Friday to lodge their defence. Cheque received on Saturday dated 17.11.06 in full settlement of claim. I am absolutely over the moon! Donation will be sent as soon as cheque is cleared. Thanks everyone for their help and hopefully this helps other people who are wanting to recover their ERCs.

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Fantastic news giveitback!!!

 

If only they were all that easy.

 

You'll be having a great Christmas now - well done.

 

:D :D :D :D

Ellielou x

Halifax 1

WON - £1,355.49 21/07/06

MINT

WON - £273.81 14/09/06

First Direct

WON - £913.50 01/09/06

Capital One

WON - £130.13 03/11/06

Halifax 2

WON - £188.03 01/12/06

 

Kensington Mortgages ERC

MCOL for £6,204.39 Discontinued

Halifax Mortgage Admin fee

WON - £10.00

Direct Line Mortgage Redemption Fee

WON - £99.00

Halifax 3

MCOL for £109.01 reg 07/03/07

 

http://petitions.pm.gov.uk/redemptionfees/

Please sign this petition x

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My goodness, that was quick! congrats...

Barclays Bank

13/9/06 - ACCEPTED HALF ON BOTH A/Cs

HSBC

21/10/06 - SETTLED IN FULL

Preferred Mortgages

11/8/06 - prelim let sent - redemption fee

12/07 - case dropped

Halifax B/S

2/07 settled in full

Halifax visa card

MCOL due

Citicards & Hillesden

2/07 Data Protection Act & CCA let sent

3/07 Prelim let sent

4/07 LBA sent

Barclaycard

04/07 offer received for 1/3 - refused

Argos Card services

Half offered - refused

PPI Claims:

8/12 MBNA Loan settled in full

7/12 Barclayloan settled in full

9/12 Liverpool Victoria settled in full

7/12 Barclaycard claim rejected

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Brilliant News - well done!

 

:D

--------------------------------------------------------------

HSBC

Settled in FULL on 8/8/06 - £3619.53

:D

CAPITAL ONE

Settled in Full on 6/9/06 - £84.76

:D

ABBEY NATIONAL (Old N&P Mortgage)

Settled In Full on 2/3/07 - £307.13

:D

SPML

*Court Case Withdrawn - family illness*

MORTGAGES PLC

*Court Case Withdrawn - family illness*

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Fantastic news - I am so pleased for you.

 

xxx

Please note that I am not a legal expert and all advice given is without prejudice and is purely my opinion only.

 

** Nationwide - £1821.15-PAID IN FULL - Aug 06 **

** Halifax Mortgage -£390 - PAID IN FULL - Nov 06 **

Lloyds TSB - MCOL issued 09/03/07 - £2953 + costs - ON HOLD....

 

 

 

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:) :) :) Well done giveitback so pleased for you and mighty quick. Hope this sets the ball rolling for a lot of people out there including ourselves. Enjoy!!

Catherine Bear

xx

:D :D :DMoney in account £13216.66!!!!

GMAC - stmnts rec'vd letter requesting £1662 refund of chrges MCOL on line being issued for ERC

SPML - issued MCOL on 21.11.06!

Kensington - statements received letter requesting £2455.55 refund of charges issuing MCOL for ERC

MBNA - refund £341 offered-sent letter requesting refund of £3846.59 charges!!!!!!

Capital One-going to issue MCOL for £1243!

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Well guys, I've been following this section of the site with great interest. I sold my house and redeemed my A&L mortgage in August 2005. I was in a 2 year fixed rate which started in March 2004 & redeemed early 17 months later at a cost of £2014.60.

 

I copied Zoot's letter (fantastic Zoot, thanks) requesting that amount plus £60 of late payment fees back & have today received the following reply:

 

"I have noted everything you have said but I am afraid we do not agree with your views on the legality of the charges you highlight in your letter. As such, I regret that it will not be possible to agree to your request to refund the charges to you.

 

The fees totalling £60 relate to unpaid direct debit payments and have been applied in according with A&L's tarriff of charges.

 

The Early Repayment Charge of £2014.60 has been applied in line with the terms & conditions of your mortgage which you accepted. I enclose a copy of your mortgage offer & have highlighted the part that explains about the repayment fee period*." (also noted below)

 

Highlighted bit from the Mortgage Offer document in exact words:

"The repayment fee period means the period of time starting on and including the day of funds release and ending after the following periods have expired.

 

The repayment fee means a sum of money equivalent to 180 days (ie. approximately six months) interest at the basic rate during the period starting on the day of funds release and ending after 2 years.

 

 

Now, I'm assuming that the repayment fee is the £2014.60 ERC. Frankly, I'm confused. I'm quite clear on the £60 charges but I'm not quite sure where to go next with the ERC. Any advice would be gratefully received.

 

(Note: Statement description is Early Repayment Charge £2014.60)

Hi

 

Did you have any luck reclaiming ERC as the A & L charged me £3000

 

Thanks for any advice

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Hi

 

Did you have any luck reclaiming ERC as the A & L charged me £3000

 

Thanks for any advice

 

As Giveitback said above they settled in full. If you read the thread properly you will see his claim was for an ERC and charges.

Alliance & leicester:Settled 8/9/06 http://www.consumeractiongroup.co.uk/forum/alliance-leicester-successes/19700-tamadus-l.html?highlight=tamadus

Capital One:Settled 22/9/06 http://www.consumeractiongroup.co.uk/forum/capital-one/16644-tamadus-capital-one.html?highlight=tamadus

MBNA 2 accounts:Settled 22/9/06 http://www.consumeractiongroup.co.uk/forum/other-institutions-successes/13831-tamadus-mbna-i.html?highlight=tamadus

Smile:Settled 15/11/06

Egg Card:S.A.R - (Subject Access Request) sent 2/10/06

GE Money:S.A.R - (Subject Access Request) sent3/8/06 LBA sent 26/9/06

Abbey:ERC prelim sent 14/9/06. LBA sent 2/10/06. Now it's getting interesting so keep watching

Barclaycard:In criminal default watch this space

Lloyds TSB:In criminal default watch this space

 

If my comments have been useful please click the scales and let me know.

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