Swift Advances. Secured Loan Charges reclaim

[overdone]

Has anyone ever succesfully reclaimed charges from Swift Advances. I had a secured bank loan with them and they charged £23.00 PER LETTER.

[overdone]

Had this letter from Bob the Bankbuster.

 

Dear Overdone,

Unfortunately, your potential claim is more complicated than most of the banks current account penalty charges claims:

 

Whilst I think you probably have a strong case for claiming back some of the default charges, it would be difficult to isolate those from what may be legally defensible charges (Even though they are still probably immorally high). I feel it would be too complicated for me to be able to offer any realistic hope of a positive result in a reasonable time. Therefor, reluctantly, I have to decline the request to take this case on.

 

Sorry if you are disapionted with this.

 

You might want to try your local Citizens Advice Bureau to see what they might be able to do. I had an enquiry about helping some one with a problem with swift loans last year. I suspect that Swift Advances may be the same firm-so they probably have a bit of form in this sort of thing.

best wishes

Bob Egerton

Edited July 28, 2008 by overdone
typo

[overdone]

I can inform members that Swift Advances are currently under investigation by the OFT as to their fitness to hold a Credit License. This is a quote from a letter a friend of mine received from the OFT as they had reported Swift on the way they operated.

 

sparkie

Quote

“As you are aware, the OFT can and does take action in the interest of consumers generally, where there is sufficient evidence. Therefore, we will continue to monitor this traders fitness to hold a credit license. Thank you once again for taking the time to write to us about this matter”

 

That may mean nothing. on 29 November 2006 I got a letter from Office of Fair Trading.

 

Dear Overdone,

 

Thank you for your recent letter.

 

I am sorry to hear the difficulties you have experienced. Unfortunately the Office of Fair Trading is unable to help you on this occasion, as we do not have the power to advise or assist individual consumers. Nor can we normally comment or take action on cases brought to us by individual customers. Our primary duties include the enforcement of competition law, the regulation of the consumer credit market through a liscensing system and the application of consumer protection in respect of matters that adversely affect the collective interests of UK consumers.

 

Your complaint has been registered on our database, and the information contained within may be referred to if the OFT decides to investigate this market in the future.

 

As you are aware, the OFT is currently looking at the issue of penalty charges for credit cards.

 

Please note that this does not currently include any other types of charges placed on a bank accounts or loans.

 

However, you may wish to consider contacting Consumer Direct.

 

You may also wish to consider contacting the financial Ombudsman Service.

[overdone]

I am sending the claim template letter off tomorrow.

 

Arrears Letters and calls charges 598.00

Bounced payment charges 33.00

Default Charge 250.00

Post default collection costs 490.00

 

Total £1371.00

[overdone]

It never entered my head, when I sold my house to pay off my secured loan, to check that the interest was what should have been charged, along with early penalty charges. I would not know where to begin.

Swift had also advised, ".....Loan was an unregulated credit agreement, The Financial Ombudsman service does not actually have jurisdiction to deal with your complaint against Swift Advances." It then mentions FISA can.

 

There was a big issue on TV some years ago that a lot of mortgages etc had miscalculated amounts of interest applied. So much so that a firm had set up soley for the purpose of checking interest charged on mortgages. Does anyone remember the name of the firm?

I would love someone to go through my case.

Edited July 30, 2008 by overdone

[overdone]

Brilliant! But how did you know what the monthly payment should have been? I took my swift mortgage at face value and repayments quoted. Mine came to about £470 a month when I remortgaged to £43,000. Supposed to be 25 years at 9.5%.

[overdone]

HI again overdone

 

Your repayments per month should have been £ 375:69....definately not £470 it looks as if they have done exactly the same to you added the Brokers fees TWICE.

 

sparkie

 

Initially, I used a broker but for the 2 remortgages I did not. £100.00 fee only was added each time I arranged a remortgage.

[overdone]

Don't know what happened there without more info but your repayments were about £100 a month too much, no doubt about that was your first loan through the broker with Swift?...because if it was thats where the big fees come in and would have carried over through the settlement figures...something like that.

sparkei

 

Found docs, but could not find web site to check interst payments. All sites seemed to be in American dollars. Anyway, in British, my last remortgage was:

 

£47,200

monthly int rate 0.83%

mortgage rate equivelent 9.96%

No of Monthly repayments 300

Monthly payment £428.74

[overdone]

Thank you Sparkie.

 

Which of the following can I claim a refund on?

 

Original Loan .. .. .. .. .. .. .. .. .. .. .. .. .. £47,125.00

Interest charged .. .. .. .. .. .. .. .. .. .. .. £14,990.58

Less payments received .. .. .. .. .. .. .. .. £14,164.15

 

Sub total .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. £47,951.43

 

Arrears Letters & call charges .. .. .. .. .. ..£ 598.00

Bounced payment charges .. .. .. .. .. .. .. ..£ 33.00

Redemption request charges .. .. .. .. .. .. ..£130.00

Other Letter Charges .. .. .. .. .. .. .. .. .. .. £175.00

Default Charge .. .. .. .. .. .. .. .. .. .. .. .. ..£250.00

Post default collection costs .. .. .. .. .. .. ..£490.00

 

Sub total .. .. .. .. .. .. .. .. .. .. .. .. .. ..£49,627.43

 

Sealing /discharge fee .. .. .. .. .. .. .. .. .. .£250.00

Early settlement interest charged .. .. .. ..£2,772.32

 

Redemption figure .. .. .. .. .. .. .. .. .. .£52,649.75

 

 

Edited August 2, 2008 by overdone
insert leader dots

[overdone]

I thought as much but I have only claimed four of those you say I can claim on. Out of court, I would be quite happy with £1371.00 I put in for. Novice that I am. Is it likely they will not bother to turn up for court as the amount is still low?

Can I claim my own costs too?

Edited August 3, 2008 by overdone
more info

[overdone]

One other thing matey we are ALL novices.

 

sparkie

 

Well I think you are a Lit in Person of sheer genius.

[overdone]

4 August 2008

 

Dear Overdone,

 

Your complaint

Former agreement Number PAxxxxxxxx

 

I am sorry to hear of the details of your complaint as set out in your letter dated 30 July 2008 which I received on 1 Aug 2008.

 

My understanding is that you are unhappy with the fees and charges applied to your account.

 

I am currently investigating the issue under our complaints process (see attached leaflet) and will reply more fully by August 2008 at the latest.

 

In the meantime, if you have any further questions or concerns, please contact me.

 

Yours sincerely

 

Tom Strickley

Compliance officer.

[overdone]

Send a complaint in to the OFT

the more tha do this will make the OFT do something about them. Make sure you tell Swift you are making a complaint, they've already been tld they are being watched by my friends, it might help you get them to pay you out quicker to stop the OFT file on them getting bigger.

 

sparkie

How do I word an OFT complaint about these charges if they ignore my being a hardship case? I understand the OFT can get you your charges back too.

[overdone]

Is there such a thing as a template letter for going via the OFT to reclaim illegal charges? Some people on CAG appear to have used that approach.

[overdone]

I decided to complain to OFT as follows and let Swift know I had.

 

22 August 2008

 

The Office of Fair Trading,

Fleetbank House

2 – 6 Salisbury Square,

LONDON CO9 2LP

EC4Y 8JX

 

Dear Sirs,

 

Re Complaint, Former Agreement Number Px xxxx/xxxx. SWIFT ADAVCES. Brentwood. Re xxxxxxxx Road, xxxxxxx, Essex xxx xxxx

 

I wrote to Swift Advances of Brentwood Essex, letter enclosed and have since had an unsatisfactory response considering this to be a Hardship Case. I wonder if you would be good enough to investigate the matter of illegal charges made on my account.

 

My Understanding of the situation is this;

 

When the OFT makes a ruling then creditors are expected, and indeed required, to comply. All banks and credit card companies, in general, hold licences to lend money under the Consumer Credit Act 1974 (and hold licences to collect consumer debts too).

 

Thus if a bank or creditor fails to take on board the OFT's ruling surely, we can use the 1974 Act to the advantage of ordinary people.

 

Most banks and the BBA have in light of the OFT's statement indicated that they think it is wrong, unfair, or only related to credit cards and so on and so forth. But the fact is the OFT has stated it is subject to all consumer contracts - including bank accounts, overdrafts and mortgages.

 

Thus what I need to do is to say to banks and creditors is that unless they implement the OFT's ruling (which means please refund all unfair bank charges within the last 6 years for England/Wales, or 5 years for Scotland) then they will be 'an unfit person to hold a consumer credit licence'.

 

Under the 1974 Act, customers can lodge a complaint to the OFT if they think a company is an 'unfit person'.

 

The point is this - if UK banks want to fight the OFT, then fine (and that will take time) but meantime the OFT could revoke their licence under the 1974 Act.

 

I await your response.

 

Yours faithfully,

 

 

Overdone

[overdone]

22 August 2008

 

TonyStrickley

TheSwiftGroup

ArcadiaHouse

Warley Hill BusinessPark

The Drive

Brentwood

Essex

CM13 3BE

 

Dear Mr Strickley,

 

Former Agreement Number Px xxx/xxxx. 20 xxxxx Road, xxxxx, Essex.

 

In view of your response to my recent complaint concerning charges to my account I have written to The Office of Fair Trading. I trust this enclosure will draw attention to the matter in a more conscientious manner and that I will receive a more favourable response soon.

 

Yours Sincerely

Overdone

[overdone]

Hi everyone

Have just got my statement of charges from Swift but could someone please tell me what template they sent to swift to reclaim the charges

(sorry still trying to find my way around)

Just go to reclaim your bank charges section and use the same letter template but adjust to fit Swift account number etc.

[overdone]

I have never dug this deep before, but I did get my swift loan via a broker. I wonder what they got paid and did I help the broker more than they did me.

 

 

Wilson & Another v Hurstanger Ltd

 

• [2007] EWCA Civ 299
  

Help with citations

Facts

 

The borrowers had fallen behind with their mortgage payments and with the help of a broker sought a second loan of £8000 to pay off the arrears.

The lender, Hurstanger Ltd, sent the borrowers various documents to sign, including one that authorised payment of the broker's arrangement fee of £1000 out of the loan. Another stated that the broker was acting as the borrowers' agent and that "in certain circumstances [the lender] does pay commission to brokers/agents…We will pay monies to your broker strictly in accordance with your signed authority by the deduction from this advance". The borrowers signed and the lender paid the broker commission of £240.

The court heard evidence that the non-status lending market had become so competitive that it had become necessary for small companies like Hurstanger to pay this sort of commission to brokers to attract business. This was in addition to the arrangement fee the broker would negotiate with the borrower.

A dispute arose over the terms of the loan. One of the issues was whether the payment of £240 was a secret profit, in breach of the broker's fiduciary duty to his clients.

Judgment

 

Under common law principles of agency, a broker owes fiduciary duties to act in the client's best interests and not to put himself in a position of conflict or make a secret profit. In this case, the broker had an incentive to look for a lender who paid the best commission, rather than getting the best deal for his clients. The only way he could act without breaching his fiduciary duty would be if the borrowers had consented.

The borrowers knew that the commission would be paid, but, without knowing the amount, could they give their informed consent?

The Court of Appeal noted that there is no clear authority to say that an agent's duty requires him to disclose the actual amount of this sort of commission. Taking into account that borrowers in this market were likely to be vulnerable and unsophisticated, however, it concluded that disclosure of the amount was necessary "to bring home to such borrowers the potential conflict of interest".

The broker had not made a secret profit because the borrowers knew about the commission. But, in failing to disclose the amount, he had, nevertheless, acted in breach of his fiduciary duty because he had not obtained his clients' informed consent to the potential conflict of interest.

Significantly, the lender, who had paid the commission knowing that the broker was acting as the agent of the borrowers, was found liable as an accessory to that breach. This meant that the borrowers were entitled to claim equitable compensation directly against Hurstanger.

Where there has been a breach of fiduciary duty, the court has a discretion whether or not to grant rescission. In this case, it could have ordered rescission of the whole loan agreement. The court, however, decided it would be sufficient to require the lender to pay the borrowers the amount of the commission, plus interest from the date it was paid.

[overdone]

well done sparkie. I cannot find other threads about these sub prime lenders but I am glad I started this one. I hope others will come forward soon.

[overdone]

Considering the Barrister went off my notes he has got the picture well I think ...just have to and see how things go fingers crossed for them anyway.

 

sparkie

Yes, you have done extremely well.

[overdone]

On 22 August I wrote to the OFT. No reply. Are they still at Fleetbank house?

[overdone]

Any news from anyone re Swift ?

Nope, nor from OFT. Time to issue my Letter Before Action.

[overdone]

http://www.consumeractiongroup.co.uk/forum/bank-templates-library/92-3-letter-before-action.html

http://www.consumeractiongroup.co.uk/forum/faqs-please-read-these/31460-example-step-step-instructions.html

 

[EDIT]

Edited September 30, 2008 by Rooster-UK
Commercial link removed.

[overdone]

Had an interesting conversation today with Swift Advances....who are trying to force me to pay my arrears which are just over one month (they owe me over 2 months in excessive charges)...the guy on the phone had been told by his boss that the OFT's guidelines on debt collection ONLY apply to credit cards !!!......despite having it in writing that they are investigating my case, and that I am disputing the charges...

 

Time for a letter to the OFT I think....

Well I hope the OFT reply. They didn't to me.

[overdone]

Well done for digging that out. I Have still not heard from Swift or OFT.That is since 22 August 2008 when I chased Swift.

Edited October 5, 2008 by overdone
add info