Bonus Vs Kensington Mortgages

[martin2006]

Hi Bonus,

I sent this one to SPML, Just mod it to suit you.

 

 

LETTER BEFORE ACTION

 

Dear Sir/Madam,

 

ACCOUNT NUMBER:

 

 

We are very disappointed that you have failed to address our request for repayment of the Early Redemption Charges within the 14 days, as required in our letter of 31 July 2006.

We now understand that the regime of ‘fees’ which you have applied to our account in relation to Early Redemption Charges is unlawful at Common Law, Statute and recent Consumer regulations.

 

We would draw your attention to the terms of the contract which you agreed to at the time that we opened our account. It is an implied term of that contract that you would conduct yourselves lawfully and in a manner which complies with UK law.

 

We are frankly shocked that you have operated our account in this way as we had always reposed confidence in your integrity and expertise as our fiduciary.

 

We calculate that you have taken £plus £which you have charged us in Early Redemption Charges. Total £.

 

 

We require repayment of this money, in full, as you have not provided the calculations or proof of your liquidated losses. If you do not comply fully within 14 days then we shall begin a claim against you for the full amount plus interest plus costs and without further notice.

Yours Sincerely

[Bonus77]

Thanks Martin, that really helps.

[Bonus77]

Okay.. havent quite sent the LBA yet, but received a reply to my prelim and thought I would put it here and ask what sort of adjustments I need to make to my LBA.

 

 

 

As your mortgage account completed on the 30 April 2002 and redeemed on 27 April 2004, we were correct in charging you 6% of the amount repaid.

There are substatial costs involved in originating and administering mortgages and we seek to recover these costs over the term of the mortgage. For this reason, the minimum loan term we allow is 5 years. Had we been informed at the time of your application that your mortgage was to be repaid within 2 years, then we would not have offered the mortgage to you. When borrowers repay their mortgage early, we seek to recover these costs by way of the ERC.

The ERC represents a genuine pre-estimate of the costs we incur, which include the following:

- Fees payable to intermediaries involved in introducing the loan, which are calculated as a percentage of the loan.

- Costs in relation to the funding the mortgage, also calculated as a percentage of the loan.

- Operational costs.

As can be seen from the above examples, certain costs are determined by the size of the loan, as they are equivilent to a percentage of the initial advance. Therefore I fully believe the way by which we calculate an ERC, as a percentage of the amount repaid, is a reflection of true costs fair and reasonable.

We have also provided details of our ERC's to both the OFT and the FSA and they have not stated that they are excessive or disproportionately high.

For these reasons, we are not prepared to refund the ERC you incurred on redemption of your mortgage. I appreciate that youve requested a full breakdown of these costs, unfortunately i'm unable to provide you with this, as it isnt a service we offer. I trust that the above details will be sufficient.

In paragraph four of your letter (Zoot's excellent prelim), youve advised us that a fee was charged to your mortgage account, in respect of protecting ourselves against any commercial risk. I believe you are reffering to a higher lending fee; however, I can confirm that no such fee was applied to your account.

Within your letter dated 14 September 2006 ( These refer to my earlier charges LBA), you've advised us that our fees are unfair, I can advise that these charges are set out within the mortgage offer and according to the OFT, are thereby exepmt from the test of fairness. In signing the mortgage offer youve agreed to these t&c's. We will therefore not be able to offer a refund of these charges.

I can advise that these charges are a pre estimate of the loss incurred. Unfortunately im unable to provide details of our fees as this is also, not a service we offer. Nevertheless, the fees that youve reffered to in your letter, cover work such as issuing of letters, additional telephone contact, and arranging and securing payments relating to accrued mortgage arrears.

In closing, may I thank you for taking the time and trouble to bring your concerns to our attention. I understand that our response may not be what your hoping for, and trust that my response has fully explained our position.

 

Blah, blah.

 

Okay, so I know I need to modify the LBA a little more, but any tips on any points I should raise?

[gizmo111]

Okay.. havent quite sent the LBA yet, but received a reply to my prelim and thought I would put it here and ask what sort of adjustments I need to make to my LBA.

 

 

 

As your mortgage account completed on the 30 April 2002 and redeemed on 27 April 2004, we were correct in charging you 6% of the amount repaid.

 

There are substatial costs involved in originating and administering mortgages and we seek to recover these costs over the term of the mortgage. For this reason, the minimum loan term we allow is 5 years. Had we been informed at the time of your application that your mortgage was to be repaid within 2 years, then we would not have offered the mortgage to you. When borrowers repay their mortgage early, we seek to recover these costs by way of the ERC.

 

The ERC represents a genuine pre-estimate of the costs we incur, which include the following:

 

- Fees payable to intermediaries involved in introducing the loan, which are calculated as a percentage of the loan.

These get paid to intermediatry at beginning of loan - whether you redeem or not.

- Costs in relation to the funding the mortgage, also calculated as a percentage of the loan.

- Operational costs.

 

As can be seen from the above examples, certain costs are determined by the size of the loan, as they are equivilent to a percentage of the initial advance. Therefore I fully believe the way by which we calculate an ERC, as a percentage of the amount repaid, is a reflection of true costs fair and reasonable.

 

We have also provided details of our ERC's to both the OFT and the FSA and they have not stated that they are excessive or disproportionately high.

 

For these reasons, we are not prepared to refund the ERC you incurred on redemption of your mortgage. I appreciate that youve requested a full breakdown of these costs, unfortunately i'm unable to provide you with this, as it isnt a service we offer. I trust that the above details will be sufficient.

 

In paragraph four of your letter (Zoot's excellent prelim), youve advised us that a fee was charged to your mortgage account, in respect of protecting ourselves against any commercial risk. I believe you are reffering to a higher lending fee; however, I can confirm that no such fee was applied to your account.

 

Within your letter dated 14 September 2006 ( These refer to my earlier charges LBA), you've advised us that our fees are unfair, I can advise that these charges are set out within the mortgage offer and according to the OFT, are thereby exepmt from the test of fairness.

Where exactly was this said

In signing the mortgage offer youve agreed to these t&c's. We will therefore not be able to offer a refund of these charges.

 

I can advise that these charges are a pre estimate of the loss incurred. Unfortunately im unable to provide details of our fees as this is also, not a service we offer. Nevertheless, the fees that youve reffered to in your letter, cover work such as issuing of letters, additional telephone contact, and arranging and securing payments relating to accrued mortgage arrears.

 

In closing, may I thank you for taking the time and trouble to bring your concerns to our attention. I understand that our response may not be what your hoping for, and trust that my response has fully explained our position.

 

Blah, blah.

 

Okay, so I know I need to modify the LBA a little more, but any tips on any points I should raise?

 

I am expecting one of these from ME soon - see if you track down Zoot she will have more ideas for your response to this.

 

Good Luck

[DoctorWhat]

"Within your letter dated 14 September 2006 ( These refer to my earlier charges LBA), you've advised us that our fees are unfair, I can advise that these charges are set out within the mortgage offer and according to the OFT, are thereby exepmt from the test of fairness."

 

That right there is a load of bollocks. In fact the OFT report on CC charges stated quite clearly that there was an obvious read-across of the report's conclusions to late payment charges etc. on mortgages.

[Bonus77]

Also.. im now at the stage where i could start a money claim for the £310 charges.. theyve already had there prelim and LBA.

 

Shall I issue it now or deal with the issue of charges & ERC as a whole?

[ukaviator]

Hi.

 

I had one charge and an ERC with Birmingham Midshires. I put both together as it related to the same account. You should'nt be too concerned with what they have said in their letter. They have admitted to the charges, but not sent a breakdown of how much it really did cost. They have basically said 'here is where the money went'. It is now up to them to prove it really did cost the amount you are claiming. A full disclosure has'nt been given, so you must proceed to the next step. The Mortgage Jedi Zootscoot will no doubt add something later. Remember, They have to Defend your claim. Your suing them.

 

Good luck

 

Uk...

[Bonus77]

Okay.. still havent quite done the LBA for the ERC, but can I now go straight to a money claim on the charges for £310? theyve had everything and now refused to refund.

[paddym]

if they have had the prelim approach for return of your charges and 14 days to come back to you then their LBA with 14 days (28 days notice in total) yes proceed to MCOL!

[lesser1010]

hi all,been to court with my son today for a possession hearing with kensington.the sloicitor who was representing kensington was very nice and apologised for kensington bullying my son into a payment arrangement he could not afford.he has a sale agreed on the house and it should be all done and dusted in a month.no chain ,people who are buying it have sold their house and are being pressed to get out.the judge was not at all impressed with kensington and made several remarks of "ridiculous"about kensingtons attempt to get possession.she gave my son a 56 day suspended order and told him not to worry,if the house wasn't sold towards the end of the 56 days to come back to court and she would give him another suspension order.as soon as it's sold i'm going after them for any and every penalty charge made on his account.

[Bonus77]

Thats great news lesser.

 

Just to advise.. Ive started a moneyclaim for the charges. £310 + Interest £92.67 + Fee £50.

 

I will knock up the LBA tonight.

 

Thanks for help so far guys!

[Bonus77]

Okay.. update on my MCOL claim for the charges part on the mortgage.

 

Its 28 days since the claim was issued. How long do I have to wait now to press the "judgment" button? Its from when it was deemed served isnt it? I think thats the monday coming, but was hoping someone could clarify?

 

Thanks

[paulpb123]

Hi Bonus,

Bet your keen to click that judgement button! I think you need to wait until 28 days after it was deemed served. Roll on Monday but don't be surprised if they take it to the 11th hour. Very best of luck to you.

Paul

[ellielou]

Hi

 

It was my understanding that you can register the judgement 14 days after the claim is served unless they acknowledge the claim when you can only register the judgement after 28 days. I may be wrong, but that's what I've understood.

 

Good luck Bonus.

[gizmo111]

Okay.. update on my MCOL claim for the charges part on the mortgage.

 

Its 28 days since the claim was issued. How long do I have to wait now to press the "judgment" button? Its from when it was deemed served isnt it? I think thats the monday coming, but was hoping someone could clarify?

 

Thanks

 

Have they acknowledged claim at all? If not then go for judgement which would be on day 19 after issue (takes 5 days before it is deemed served)

[paulpb123]

Bonus,

Ellielou's right. Did they acknowledge the claim? If not hit that button! Right now!

[Bonus77]

Yep, afraid they did acknowledge the claim, so I then think its 28 days from when it was originally served.. ?

[dolly]

Yes, that is right. So it is 28 days from when it was deemed served.

 

Fingers crossed for you that they don't pull a fast one at the last minute.

[gizmo111]

Yep, afraid they did acknowledge the claim, so I then think its 28 days from when it was originally served.. ?

 

28 days from date deemed served - so they have until 6th Nov to file defence.

[Bonus77]

Thanks guys, only a couple of days to go...

[Bonus77]

Damn this is frustrating. I thought the 28 days were up yesterday, but I still cant push the "judgment" button. How many days is a claim "deemed served"?

[gizmo111]

Damn this is frustrating. I thought the 28 days were up yesterday, but I still cant push the "judgment" button. How many days is a claim "deemed served"?

 

Usually 5 days after issue

[ellielou]

You're very close to Judgement day Bonus - don't be surprised if they come up with something at the last minute though - think they have a trick of doing that.

 

Good luck, I've got my fingers crossed for you

[hulsevictoria]

Hi ellielou what's a MCOL?

Trying to get my head round the terminology

[paulpb123]

Money Claim On Line. Taking the leg work out of filing a claim against your bank!