Any ideas on what my next port of call would be. Abbey said in July 2004 they would not correspond with me any more and that I had 6 months to contact the FSO to make a complaint. With moving and finding a house and sorting out our 3 boys in NZ just got put on the back burner. However, I am still incensed by Abbey and will never back or recommend anyone to them again. Any Help appreciated.

We took out a 4.65% fixed rate on the 2nd November 2003 which would expire on the 2 November 2007. THis was a five year mortgage and we had transferred at a lower rate Negotated with Abbey from 7.95 motgage that was nearly at an end. Yes there was a PRC quoted at 290 days, we only had the morgage until August 2004 as hudband unexpectedly got offered a job in New Zealand. This was the gyst of the letter we send to the chairman: We have been loyal customers since July 1995, when we bought our first flat together. We stayed with Abbey when, in November 1996, I was appointed to a more senior academic position in Manchester and we bought a larger house in the North-West. We moved to a larger family home in March 2003, taking a third mortgage with Abbey. On this occasion, we took out a 4.5% (4.65% APR) mortgage of ₤210,000, fixed until November 2007. Last autumn, I was approached by a selection agency and offered a five-year, fixed-term post, to start 1 August 2004. This was an unexpected, but very attractive, job offer at a leading New Zealand university blah blah... During correspondence by mail and a telephone conversation today, Mr Marshall has confirmed to my wife that the ‘product-related charge’ for early redemption of our mortgage is ₤7,546.97, plus a redemption fee of £99.00. This means that we are being asked for a total of £214,068.68 to redeem a loan of £210,000, after 16 months of paying a monthly amount of £1,185.19. I am afraid that I find this completely unreasonable. As noted above, we have been loyal customers of Abbey and we find ourselves in the position of having to redeem early as a result of unusual circumstances; moreover, this ‘product-related charge’ aside, we would have expected to return to Abbey as mortgage customers in 2009, or earlier, when we return to the UK as house-buyers. As an economist, I find the ‘produce-related charge’ inexplicable. At the time we took out our current mortgage, the five-year fixed-rate was 4.5%. Since then, base rates have increased steadily and Abbey’s current five-year fixed-rate is 5.74% (6.4% APR), an increase of 1.24%. This implies that, far from losing money on our early redemption, these funds could be reinvested at market rate at considerable profit. Anyway any ideas of what next to do would be very welcome.

Do you know any ratio of cases that have won and lost?

Hi Rascal, You are very welcom to a copy. I am based in Christchurch New Zealand and so I could fax it to you or post which can be slow? Cheers, Em:)

I am not sure whether this helps and I can fax a copy or send via post, but in July 2004 we moved to New Zealand and sold our house we were charged a PRC of $7500. We wrote letters to the Lord Burns Chairman, Chairman’s Head Office, Mr Luqman Arnold, Chief Executive and Angus Porter - Customer Director anyway to cut a long story short we got a letter back from Bill Tarbuck - Asstant Manager - Regulated and Final Stage Complaints - quote 'I have not investigated your concerns at this final stage of our internal complaints procedure. I have reviewed available correspondence and history of your account. In november 2003 you arranged a mortgage on product FD003, 4.65% for five year fixed rate to the 2 November 2007. Your mortgage offer dated 25th November 2002, included a condition that a Product Related Charge (PRC) equal to 290 days interest at the fixed rate, would be made on any amount repaid or transferred prior to the 2 November 2007. There is no provision in the contract for a reduction in the PENALTY based on the length of time the mortgage is held. Whilst I sam sympathetic to your circumstances, I do not feel that Abbey is any way responsible for them. All we are now doing is asking you to comply with your obligations under a contrct into which you freely entered, in the same way that, very properly, you would expect us to comply with our obligations under the contract. I apprciate this decision will come as a disappointment to you. However, I regret to inform you that our internal complaints procedure has not been exhausted. This entitles you to refer your complaint to the Financial Ombudsman Service. They may consider your complaint as long as it falls with their rules, and as long as you refer it to them with 6 months of the date of this letter. I enclose a copy of the Financial Ombudsman Serviecs leaflet for your reference. I should also mention that as the complaints procedure is now exhausted, the Company cannot enter into further correspondence with you on this matter. Yours sincerely...' I'm not sure whether this helps the cases against the shabby Abbey but this guy has admitted it is a Penalty maybe this has implications for all parties??? Not sure. Cheers, Em

Hi Rascal, I am not sure whether this helps, but in July 2004 we moved to New Zealand and sold our house we were charged a PRC of $7500. We wrote letters to the Lord Burns Chairman, Chairman’s Head Office, Mr Luqman Arnold, Chief Executive and Angus Porter - Customer Director anyway to cut a long story short we got a letter back from Bill Tarbuck - Asstant Manager - Regulated and Final Stage Complaints - quote 'I have not investigated your concerns at this final stage of our internal complaints procedure. I have reviewed available correspondence and history of your account. In november 2003 you arranged a mortgage on product FD003, 4.65% for five year fixed rate to the 2 November 2007. Your mortgage offer dated 25th November 2002, included a condition that a Product Related Charge (PRC) equal to 290 days interest at the fixed rate, would be made on any amount repaid or transferred prior to the 2 November 2007. There is no provision in the contract for a reduction in the PENALTY based on the length of time the mortgage is held. Whilst I sam sympathetic to your circumstances, I do not feel that Abbey is any way responsible for them. All we are now doing is asking you to comply with your obligations under a contrct into which you freely entered, in the same way that, very properly, you would expect us to comply with our obligations under the contract. I apprciate this decision will come as a disappointment to you. However, I regret to inform you that our internal complaints procedure has not been exhausted. This entitles you to refer your complaint to the Financial Ombudsman Service. They may consider your complaint as long as it falls with their rules, and as long as you refer it to them with 6 months of the date of this letter. I enclose a copy of the Financial Ombudsman Serviecs leaflet for your reference. I should also mention that as the complaints procedure is now exhausted, the Company cannot enter into further correspondence with you on this matter. Yours sincerely...' I'm not sure whether this helps the cases against the shabby Abbey but this guy has admitted it is a Penalty maybe this has implications for all parties??? Not sure. Cheers, Em

Hi There, Can anyone help? Back in July 2004 my husband and I were selling our property as we were moving to New Zealand with my husbands job:- This is part of our complaint letter. During correspondence by mail and a telephone conversation today, Mr Marshall has confirmed to my wife that the ‘product-related charge’ for early redemption of our mortgage is ₤7,546.97, plus a redemption fee of £99.00. This means that we are being asked for a total of £214,068.68 to redeem a loan of £210,000, after 16 months of paying a monthly amount of £1,185.19. I am afraid that I find this completely unreasonable. As noted above, we have been loyal customers of Abbey and we find ourselves in the position of having to redeem early as a result of unusual circumstances; moreover, this ‘product-related charge’ aside, we would have expected to return to Abbey as mortgage customers in 2009, or earlier, when we return to the UK as house-buyers... Anyway, we got a letter back from Bill Tarbuck Assistant Mananger 'There is no provision in the contract for a reduction in the penalty based on the length of time the mortgage is held.' They went on to say they do not feel responisble and to the FSO. and that we had 6 months from the date of letter 29th July 2004 to go to the FSO and that they would not talk to us anymore. Anyway, I was totally exhausted with moving to NZ and did not follow it up, is it too late??? Anyway, we paid and left it at that, I have since noted that the FSA have said the banks are changing excessive redeption fees and this is not on. We have called Abbey and stated we want a full refund forthwith. They have logged our complaint! I have been reading the postings with great interest about Abbey and PRC and wonder if we are 1. too late to go to court and 2. has there been any legal president set? Look forward to any help and advice. Em

Hi There, Can anyone help? Back in July 2004 my husband and I were selling our property as we were moving to New Zealand with my husbands job:- This is part of our complaint letter. During correspondence by mail and a telephone conversation today, Mr Marshall has confirmed to my wife that the ‘product-related charge’ for early redemption of our mortgage is ₤7,546.97, plus a redemption fee of £99.00. This means that we are being asked for a total of £214,068.68 to redeem a loan of £210,000, after 16 months of paying a monthly amount of £1,185.19. I am afraid that I find this completely unreasonable. As noted above, we have been loyal customers of Abbey and we find ourselves in the position of having to redeem early as a result of unusual circumstances; moreover, this ‘product-related charge’ aside, we would have expected to return to Abbey as mortgage customers in 2009, or earlier, when we return to the UK as house-buyers... Anyway, we got a letter back from Bill Tarbuck Assistant Mananger 'There is no provision in the contract for a reduction in the penalty based on the length of time the mortgage is held.' They went on to say they do not feel responisble and to the FSO. and that we had 6 months from the date of letter 29th July 2004 to go to the FSO and that they would not talk to us anymore. Anyway, I was totally exhausted with moving to NZ and did not follow it up, is it too late??? Anyway, we paid and left it at that, I have since noted that the FSA have said the banks are changing excessive redeption fees and this is not on. We have called Abbey and stated we want a full refund forthwith. They have logged our complaint! I have been reading the postings with great interest about Abbey and PRC and wonder if we are 1. too late to go to court and 2. has there been any legal president set? Look forward to any help and advice. Em

Hi There, Can anyone help? Back in July 2004 my husband and I were selling our property as we were moving to New Zealand with my husbands job:- This is part of our complaint letter. During correspondence by mail and a telephone conversation today, Mr Marshall has confirmed to my wife that the ‘product-related charge’ for early redemption of our mortgage is ₤7,546.97, plus a redemption fee of £99.00. This means that we are being asked for a total of £214,068.68 to redeem a loan of £210,000, after 16 months of paying a monthly amount of £1,185.19. I am afraid that I find this completely unreasonable. As noted above, we have been loyal customers of Abbey and we find ourselves in the position of having to redeem early as a result of unusual circumstances; moreover, this ‘product-related charge’ aside, we would have expected to return to Abbey as mortgage customers in 2009, or earlier, when we return to the UK as house-buyers... Anyway, we got a letter back from Bill Tarbuck Assistant Mananger 'There is no provision in the contract for a reduction in the penalty based on the length of time the mortgage is held.' They went on to say they do not feel responisble and to the FSO. Anyway, we paid and left it at that, I have since noted that the FSA have said the banks are changing excessive redeption fees and this is not on. We have called Abbey and stated we want a full refund forthwith. They have logged our complaint! I have been reading the postings with great interest about Abbey and PRC and wonder if we are 1. too late to go to court and 2. has there been any legal president set? Look forward to any help and advice. Em