BobbyH v Future Mortgages

[bobbyh99]

Hi there.

 

I had a "secured loan agreement" with Future for £26,390 back in October 2002. I redeemed this on 1 April 2003.

 

Firstly this loan agreement was regulated by the Consumer Credit Act.

Secondly the loan was on their standard variable interest rate.

 

Yet they still charged me an early redemption fee of over £2,000.

 

I think I have read somewhere on this forum that there are/were strict rules to repaying loans early which were regulated by the CCA. I believe the Rule of 78.

 

I am write in thinking that they shouldn't have charged me this early redemption fee? and if so what should be my first steps, if any?

 

Thanks

BobbyH

[tiglet]

Bump.

[bobbyh99]

Bump

[Bigmark]

Hi

 

What did the terms on the agreement say?

 

My terms for Secured Loan Agreement start date August 2002 The Customer may end this agreement by giving Future Mortgages three months written notice (or paying interest in lieu of notice) such notice to expire on an instalment payment date.

[bobbyh99]

Thanks for your reply.

My terms only say things which relate to the CCA. However, on the agreement itself it says:

 

"You have a right to settle this agreement at any time by giving notice in writing and paying off all amounts payable under the agreement which may be reduced by a rebate"

 

Thats all there is, nothing about 3 months interest, early redemption charges!

 

BobbyH

[Bigmark]

Hi

Have found notes that F/M sent with our Annual Statement April 2003,

"We are pleased to enclose your statement and would draw your attention to the points listed below."

Fees and charges are correct at the time of going to press February 2003

 

Early Redemption Fees

During year one of the loan a sum equivalent to 5% of the outstanding balance will be added to the redemption figure

Year two 4%,

Year three 3%,

Thereafter a sum equivalent to 1% of the outstanding balance will be added to the redemption figure.

I was charged 6 months interest, and have been fighting Future Mortgages for the return of 3 months interest, Plus £5,200 for mis-sold PPI.

[bobbyh99]

Hi Bigmark

 

Was yours regulated by the CCA? and did you have a fixed, discounted,c apped interest rate?

 

Mine was regulated by the CCA and I was on their standard variable interest rate!

 

Anyway, I have passed all my documents onto a Consumer Law Expert who has passed these to a forensic accountant!!! I'll let you know how I get on!

 

BobbyH

[Bigmark]

Hi Bobby

Secured Loan (Unregulated) fixed for the first 60 months then variable.

The loan amount £40,000 over 20 years arranged through Loans.co.uk who added £5.200 for PPI

I was informed the loan totalled £45,200, but only received £40.000 the difference going towards PPI, allegedly requested in a telephone conversation I had with an adviser from Loans. (mis-sold PPI complaint with FOS)

I redeemed this June 2003 (start date August 2002) upon finding out the £5.200 insurance only covered the first 5 years, but I was to pay interest for the whole term of the loan. I was then charged six months interest for redeeming the loan, terms clearly state three months written notice or three months interest in lieu of notice.

Future Mortgages have basically ignored all attempts to communicate, the FOS wrote to them requesting they write to me detailing the outcome of their investigation in regards to my complaint, again no response.

I have been successful claiming back mortgage charges with the help of the FOS against GMAC and Woolwich/Barclays, (full amount with 8%) BUT THIS LOT

I will refrain from using such bad language.

I will follow your posts with interest.

Good luck Marcus

[groovycaz]

Hi you can input you figures into this link

http/brian_stuart.orpheusweb.co.uk/credit/javascript/equalr78.ppr.htm

 

javascript rule of 78 calculator its simple to use.

 

hope this is of any help.Gc

[bobbyh99]

I haven't even started on the PPI yet. PPI appears on all 3 secured loans!!

 

I would say you have a good chance of getting at least 3 months interest back. Just as an aside, when you redeemed the loan did they refund any of the PPI single premium? as the £5,200 was a single premium for 60 months and you only had the loan for about 10 months!!!

 

Anyway I still haven't had a reply from the "Forensic Accountant" but will post when I do, although I'm fairly confident he will say that they have charged me too much when Is ettled early. I have checked the Ruleof78 calculations and they come to nowhere near what I was asked to pay back!

 

Anyway, will post as soon as I hear something!

 

BobbyH

[Bigmark]

Hi

Yes I did get a rebate £3,504.36. £1,696.00 for 10 months cover? F/M state “the refund is a proportionate refund made on the basis that more of the premium is used at the start than at the end of the period cover” (they could be right unfortunately insurance did not cover SHOCK).

My application form is clearly ticked No protection cover for any persons applying.

I refused to pay the first instalment until the £5,200.00 was returned.

Futures Mortgages response you “signed the agreement” and you can have a £47.00. arrears admin charge.

My claim

5 x £ 47.00 arrears charges

5 x £ 20.00 Failed D/D charges

1 x £1,696.00 10 months PPI

3 months interest £ 923.77

good luck

Marcus

[bobbyh99]

OK - I put in a claim for arrears charges and dd fees. They failed to acknowledge or defend so jusgement has been awared in my favour.

 

Getting the cash out of them will be a different story as I have to go through their Indian call centre. Anyone out there have a UK number for them?

 

On the R78 rebates, I should have an answer by the end of the week from the forensic accountant!!

 

BobbyH

[Ell-enn]

Hi Bobby - well done in getting judgement for charges etc. What Future Mortgages address did you use when you sent your lba and subsequent court claim.

 

Kind Regards

 

Ell-enn

[bobbyh99]

I used

 

6 Admiral Way

Doxford International Business Park

Sunderland

SR33 3XW.

 

BobbyH

[Ell-enn]

Thanks Bobby, let us know if you get your money from them.

[Bigmark]

Hi Bobby

 

Future Mortgages Ltd

PO Box 49944

London

SE5 7YG

 

Tel 0870 010 9037

Fax 0870 909 9473

 

good luck Marcus

[tiglet]

The Sunderland address is a call-centre, I believe.

[bobbyh99]

OK - spoke to the Customer Response team who are now based in Debry (0800 015 6609) and spoke to guy who said that once they receive a copy of the judgement they will contact me.

 

I shall not hold my breath!!

 

BobbyH

[bobbyh99]

OK a bit of an update.

 

I have just had a call from the CRT (Client Response Team) at Citi Financial to say that they have requested a cheque for £956.

 

At last.......

 

BobbyH

[bobbyh99]

Update - Still haven't got my money. Received a letter from Eversheds asking me to sign their consent form before releasing the money! Told them to basically poke it and provided my own consent form and said I will sign this once I receive the money. I have given them until Moday to come up with the money, then I guess its back to court to enforce!

 

Anyway, moving on, I have another question regarding these secured loan agreements. As previously mentioned I redeemed all these loans early, they were all regulated by the CCA. I was under the impression that when you settled loans early back in 2003/2004 the settlement was based on "Rule of 78". The reason I thought this was because Future mention this in a statement of account they have provided me with for one of my loan agreements.

 

I have calculated was settlement should have been using this R78 for all 3 agreements and wrote to Future asking them to explain their settlement figures and they have come back and said, the wording on the statement which mentions R78 was incorrect and what I have actually been charged is 6 months interest!

 

Now I have read all the term and conditions for all 3 agreements and it does not mention anywhere that I would be charged 6 months interest when/if I redeem the loans early.

 

I have read the CCA sections regarding early settlement for loans in this period and it doesn't seem to be much help.

 

Am I write in thinking that:

a) They should have used R78 to calculate settlement?

b) They should not have charged me 6 months interest, especially when this doesn't appear on their T&C's?

 

Please, if someone knows the answers to these questions could they let me know?

 

Thanks

BobbyH

[bobbyh99]

£956 cheque banked this morning.

 

Thats is Part 1 of 3!

 

BobbyH

[bobbyh99]

Bump (post no. 20)

[bobbyh99]

Bump (post no. 20)

[bobbyh99]

Anyway, moving on, I have another question regarding these secured loan agreements. As previously mentioned I redeemed all these loans early, they were all regulated by the CCA. I was under the impression that when you settled loans early back in 2003/2004 the settlement was based on "Rule of 78". The reason I thought this was because Future mention this in a statement of account they have provided me with for one of my loan agreements.

 

I have calculated was settlement should have been using this R78 for all 3 agreements and wrote to Future asking them to explain their settlement figures and they have come back and said, the wording on the statement which mentions R78 was incorrect and what I have actually been charged is 6 months interest!

 

Now I have read all the term and conditions for all 3 agreements and it does not mention anywhere that I would be charged 6 months interest when/if I redeem the loans early.

 

I have read the CCA sections regarding early settlement for loans in this period and it doesn't seem to be much help.

 

Am I write in thinking that:

a) They should have used R78 to calculate settlement?

b) They should not have charged me 6 months interest, especially when this doesn't appear on their T&C's?

 

Please, if someone knows the answers to these questions could they let me know?

 

Thanks

BobbyH

 

Has anyone any idea what I should do?

They charged me 6 months interest on each loan as an early redemption penalty despite the fact that the CCA and T&C's doesn't mention this!!!

 

I am led to believe that they should have used R78 to calculate early settlement, although I believe this has been found to be unfair!

 

The difference between R78 and 6 months interest on these 3 loans amounts to over £3k!!

 

Please can someone tell what they should have done?

 

Thanks

BobbyH

[bobbyh99]

Bump