SPML

[martin2006]

Will maybe need an n1.

They charged me £100 erc administration, £40 deeds release fee and the whopper £3063.55 which was 6% of outstanding balance.

im trying to query though that if my balance had been 200k i would have paid £12000 ERC!!!!! for exactly the same service. Now im no genius by any stretch of the imagination but how could this formula reflect actual liquidated losses?

Equally had it been 500k then i would have paid £30000. i cant see that this is in any way shape or form a fair term or condition.

They just pick a % figure and stick it in the terms and then make out its ok to charge it.

[martin2006]

Just found this too.Disputes Even lenders with clear documentation are not immune from disputes. The Unfair Terms in Consumer Contracts Regulations 1999 (Regulations) will apply if the term is not individually negotiated (which it rarely will be). The court or Financial Ombudsman Service (FOS) will consider whether, with regard to the circumstances prevailing at the date of the contract, the term is one, which contrary to the requirement of good faith, caused a significant imbalance in the parties’ contractual rights and obligations to the customer’s detriment. Paragraph 1(e) of Schedule 2 to the Regulations provides that a term “requiring any consumer who fails to fulfil his/her obligation to pay a disproportionately high sum by way of compensation” may be unfair.

[philread1]

Hello Martin

 

I did'nt think of it like that, but you are right when you say that the 6% is a variable charge depending on how much you borrow!!! How an earth can they justify such a system that can 'earn' them more money, the more that you lend off them! At the end of the day, I don't think this should be allowed, it is greed of the highest portions, and is systematic of how this country has gone over the last 10 years. No one is happy any more with earning a modest living, they just want to take more & more & more, until they have bled you dry!!!!!!! Whether it is dodgy builders or dodgy banks/lenders!!!

 

Surely, they can only charge you what it has cost them in admin at the end of any deal whether you redeem early or not. What is the difference to their costs whether you go the full term of a mortgage or leave after 1 year?!!!!!!

 

This charge should be set at a figure which is broken down in clear writing, and calculated in such a way that it covers any actual losses incurred by the lender.

 

I agree totally with your argument, Martin!!! Go Get 'Em!!!

Phil:)

[martin2006]

If they could show me the calculation of how they arrive at the figure then i can assess whether its extortionate or not. If they wont then we go to see Mr Judge and they can explain it to him.

[zootscoot]

This below is cut from a post zootscoot put on a different thread so you may like to PM and ask for his permission to use. Good Luck

 

No need to pm, all my posts are free for the taking! Oh and its her not his! lol

 

The above extract relating to money claim was my editing of anothers suggested wording. It actually does not fit on money claim as I found out when I tried to use it. This is what I used and it just about fits when you add the standard bit that comes up when you tick the box for interest. Its down to the bare bones but includes all the relevant info. Although if you'd rather go via N1 can you expand it

 

I am claiming the return of money taken by the defendant in the way of a redemption penalty charge in Feb 06 on account no xxxx. This charge relates to my breach of contract in that I terminated the contract before the agreed period. The defendant's charge for our breach is a disproportionate penalty and therefore unenforceable as it is contrary to common law as established in Dunlop Pneumatic Tyre Co Ltd v New Garage and Motor Co Ltd [1915] AC 79. Further, as a disproportionate penalty it is invalid under the Unfair (Contracts) Terms Act 1977 s.4 and under the Unfair Terms in Consumer Contracts Regulations 1999. Para.8 and sch.2(1)(e). I have repeatedly asked the defendant to justify their charges but they have declined to do so.

 

Hope this helps

 

Zoot

[martin2006]

Thanks miss Zoot

[too strong]

Will maybe need an n1.

They charged me £100 erc administration, £40 deeds release fee and the whopper £3063.55 which was 6% of outstanding balance.

.

 

I too am after SPML I can't believe how similar our claims are. Just today received the same letter as yours above. The fact that they keep referring to the T+c's just proves there is no justification for their costs.

 

When I sent my LBA I claimed for the erc, £100 erc deeds nonsense and the extra interest they earned doing nothing because they charge for the whole month.

To me that looks like 3 different types of redemption penalties.

 

Anyway, their reply mentioned nothing of the £100 or the extra interest. I will reply mentioning those points but they have until a week on friday to come good or I will be hand delivering my court claim.

 

I don't know if you will reply to them, I will just to see what they come back with.

[martin2006]

I am already at the point where i should be issuing MCOL but ive just issued one to A&L so ill leave it a week to stagger the cost.

Like the banks, they wont justify their charges so its onward and upward.

[martin2006]

MCOL filed 20-9-06

[Les Gunn]

Good luck Martin2006 - although expect them to say they haven't got it! I filed mine on the 8th - it was deemed to have been served on the 12th. I rang them out of courtesy yesterday to see if they had got it and their Legal Dept said they hadn't! So I very politely gave them the Claim ref. and bid them goodbye.

 

See what happens now...if they play the stalling game, i've more than got the upper hand!

[zootscoot]

Good luck Martin, Don't forget to pm a mod your details for the litigation section. Claim no, amount and date.

 

All the best

 

Zoot

[paddym]

good luck martin !

[martin2006]

Thanks all.

I really dont mind if they say they havent got it. If its been served then they have 14 days to acknowledge it or we go for judgement. Anyway, lets not jump the gun they may just pay me!!!!!

[zootscoot]

I rang them out of courtesy yesterday to see if they had got it and their Legal Dept said they hadn't! So I very politely gave them the Claim ref. and bid them goodbye.

 

Wise move, it will stop them seeking to set aside a judgment by default on the grounds that it was not received as happened to Dashngail.

[martin2006]

Good Point. OK i will ring them in a few days when it should be there

[martin2006]

ok so i havent updated this one for a while so heres the latest.

 

sent MCOL on 20 -9 -06

got a call from spml solicitors asking for 28 day extension which i have allowed

 

 

I seem to be in exactly the same place with this as LES GUNN.

 

 

Maybe they just want to store them all up so we can all go to court together!!! What fun!!

[Les Gunn]

A day trip it is then Martin!!

 

[martin2006]

Hee Hee!!

[markt]

if we all go to court together we could have the mother of all lunches .....

[martin2006]

Got the defence today and they intend to defend in full so its onto the court allocation stage i guess.

Still no evidence of calculated losses in it though.

Just the usual 6% rubbish.

I think ive said before that this cant possibly reflect liquidated losses due to the fact that is a percentage figure and would be different for every mortgage, whereas the work involved to discharge any mortgage would surely be the same for a £50k mortgage as it would be for a £250k mortgage, yet the ERC at 6% would vary

[Les Gunn]

Got the defence today and they intend to defend in full so its onto the court allocation stage i guess.

Still no evidence of calculated losses in it though.

Just the usual 6% rubbish.

I think ive said before that this cant possibly reflect liquidated losses due to the fact that is a percentage figure and would be different for every mortgage, whereas the work involved to discharge any mortgage would surely be the same for a £50k mortgage as it would be for a £250k mortgage, yet the ERC at 6% would vary

 

Same old Same old Martin - cobblers really and a flimsy atempt to hold out. Bottom line is, they can use the judicial system to it's full advantage by stalling tactis as long as possible, but in the end, the Court will see through the fact we just want the breakdown of costs, not bloody war n peace lol!

 

[martin2006]

Got the AQ today so ill be getting it sent back asap.Anyone got any advice for filling it in please?

 

Hope yours is going well Les

[arizona]

Hi Guys

 

Looking over everyones comments it's good to hear I'm not alone!

I have had an ongoing battle with this company and they always say they haven't recieved my correspondence and payments etc etc. At the moment I have under gone financial difficulty of which they are fully aware yet they haven't gave any lea way what so ever! (no surprise there)

All I pretty much want to know is can I try and claim the charges back for letters they have sent and payment charges they are constantly making. Due to my circumstances I have requested a redemption figure and of course it's huge is there anything I can do to get them to reduce this?

I am in a position wherby they are charging me interest on my balance and arrears which I have occured (due to redundancy). I am currently selling my property as I am left with no alternative option.

 

If anyone can point me in the right direction I would be very greatful.

[Seminole]

To be honest it was an enormous relief to me to sell my property and get out of the clutches of these people. You are right. They are totally inflexible and seem to be intent on repossessing property as soon as someone gets into difficulties.

 

If you've had any experience of the way they handle court proceedings you will be doubly aware of this.

 

You can certainly recover penalty charges from them (I did a few months ago). These would normally be their arrears fees and bounced transaction fees. Recovering interest is much more difficult and I wouldn't recommend trying this.

 

Others are trying to get back their early redemption charges and this may be worth trying but the arguments here are more complicated not least because they may actually incur a real loss from the early redemption.

 

I would suggest that, if you are fairly certain that you will be able to sell your property and you are not in imminent danger of reposession, then you should start making noises about their unlawful penalty charges and informally challenging their early redemption penalty. It is extremely unlikely that they will concede anything on these points.

 

At the end of the day you will probably need to sell the property and issue proceedings for the recovery of unlawful charges afterwards. I would not rate your chances of persuading them to be reasonable. It's also worth noting that once these people get a suspended possession order, they frame the application in such a way that they can go for an eviction even after the initial arrears are paid off if you go into arrears again.

[arizona]

Totally unfortunately they have suspended possession at the moment I just wish this battle was over as it's gone on for 14 months and it's driving me crazy. Obviously they will more than likely get possession after Christmas as I have until Feb to sell confirmation from my "Judge". There's very little I can do at the moment other than hope for the best. Thanks for your reply