Arrears paid, now threatening 'action' over so called charges?

[Ripley2008]

Hi,

Back in October my friend was in danger of losing her home through arrears in her mortgage. Thankfully, with help from CAG (especially El-enn)an agreement was made for her to pay off the amount owed, and maintain her normal monthly payment. This was accomplished end of Apr or May (can't remember without checking)

During the period she was constantly getting letters from them (Derbyshire Home Loans) stating she was paying late. She wasn't, in fact she was paying earlier than the stated date. She rang them, just to explain this, THREE times, and each time they said they would sort it out. The final conversation she had with them was "..... just ignore them, as they are computer generated, and sent out automatically, even though she has paid up to date ...".

 

However, over the last few weeks she has been getting letter stating that she is still in arrears due to their charges. Tbh, we thought this was just a case of the computer not catching up with the real world as yet.

 

This weekend she has received a letter from their solicitor stating that she is £1220.04 in default of the order???, and threatening to take further action, if not paid withing seven days.

 

She is now, once again at her wits end, and has asked me to come here again for help.

 

So, please anyone, advice and help would be greatly appreciated. In view of the 7 day request, as soon as possible please.

 

Regards,

Paula

[BankFodder]

Firstly- although it is a bit late - she should not do anything over the phone without recording.

She has received verbal assurance and has no way of proving it.

 

What are the charges? Late payment charges?

 

I think that the starting point is to write to them outlining completely the step she has taken in respect of all of the letter which sh has received from them - the responses she has med etc. I don't think that this will help very much but you may as well get it down on paper for the record. They can formaly accept or reject what she says - or ignore her.

 

I think that a separate letter should be used to respond to the latest demand. She should otline what she believes her financial position to be and why she thinks that their figures are incorrect.

This same letter should be used to decalre that the account is formally in dispute - both because of their calculating error and also because of their chargs which I am quite sure will be unfair.

 

Whatever they say, she must keep on making the agreed payments. Even if she receives a letter telling her that only full payment is now acceptable - she must continue paying regularly.

 

Be aware that they may be right and that the accounting error may be hers. In this case, she only has the unfair level of charges to argue.

 

She needs to get the position clarified as quickly as possible to stop the problem deteriorating any further.

 

If you can ascertain for certain where the error lies, then we may be able to help you further

 

Ell-en will have a better handle on this han me

[jansus]

Hello

 

Arrears are technically the difference between the payment due each month and the payment received. Arrears charges should be added to the debt and not included in arrears figures for any court action.

 

First of all it must be clear about how they have come to the figure and also your friend should be clear about what was said in court and make a record of what she has paid each month since then. She was only obliged to keep to what the court ruled was a satisfactory arrangement.

 

I agree with the above . I would write a letter saying the amount requested is in dispute. As them for a complete breakdown of payments due and received since the arrears began plus a SEPARATE breakdown of all charges added to the account and the reasons for each charge.

 

Then this will give you the information needed to decide whether to make an official complaint to the FOS if necessary.

[jansus]

Sorry also as she has received the letter asking for payment within 7 days she /he must emphasis that an early reply is needed before payment can be considered . As a last resort then a SAR letter must be sent.

 

The FSA has recently criticized lenders for charging for late payments and or just being in arrears and also some people have been successful in claiming back charges through the FOS.

[Ell-enn]

Hi there, were the arrears management charges included in the amount the lender was claiming in court?

 

What figure was on the judgement order she would have received in the post after the hearing.

 

Once we know the above we can advise further.

 

Ell-enn

[Ripley2008]

Hi there,

Firstly, thank you for your prompt replies. Sorry I was unable to get here sooner myself.

 

Bankfodder:

She has been told the reasons for NOT entering into a phone conversation, and no longer does it.

The charges, from what I can understand are 'monthly arrears fees', and 'customer contact fees'.

I understand the need for the two letters, and shall be composing them with her tomorrow, as she will be here.

 

One thing I'm not sure I understand though, and it may be purely down to my original post.

The arrears that were owed HAVE been cleared entirely, as per the instructions from the court. That being the case, what should she continue to pay? Are you saying she should continue to pay an amount equal to what was arranged? (This would be extra to her mortgage payment)

 

Hello Jansus:

I think your first statement is exactly what HAS happened. They are now asking her to pay off the charges made for the arrears. Surely, this would be a never ending situation? Simply because as long as she had 'arrears' (albeit gained by any charges they have made) they could continue to add them whilst she was paying these ones off! It would never end I feel!

 

The actual order from the court reads, "blah, blah blah suspended on payment of currently monthly instalments plus arrears of £1468.60 by £150 per month.

 

Then, at the bottom of the page, under the heading "To the defendant" it states.

'......unless you pay the arrears and costs at the rate set out above in addition to the current rent, you must leave ....'

 

So, these extra figures are not mentioned at all.

The letters sent will also contain your advice, thankyou.

 

Ell-enn, Hello again,

 

I think I've answered your queries in Jansus' replies?

No, the charge they are now asking for were not included, and the original figure was for £1468.60.

 

Just as a point of info, she does have receipt for all but one of the payments made. She stupidly didn't ask for a receipt on the first payment. The reasons why she should were pointed out to her by myself at the time.

 

One question: should we write to the solicitor involved at all?

 

Many thanks so far

Paula. (I should be at my computer most of tomorrow)

Edited August 11, 2009 by Ripley2008

[Ell-enn]

OK, we need a strong letter to the solicitors - I'll happily draft one for you if you need me to. You cannot be in arrears with charges - you can only be in arrears with contractual payments i.e. the installments you agreed to pay on your mortgage. Charges should be added to the end of the mortgage. I'd like to see a judge's reaction if they were to try to evict her for for arrears charges - in fact - I'd pay to watch that hearing!!

 

Just make absolutely sure that she has paid the total amount that was stated on the court order - check bank statements etc.

 

A letter to the FOS is also recommended as they have already intervened in other cases regarding mortgage arrears charges.

 

 

Ell

[Ripley2008]

Hi Ell,

 

I thought they had got it wrong, thanks.

I wrote her a letter that has been posted to the company, sent by recorded, signed for (think that's the right way)

Would greatly appreciate a letter for the solicitor though. Both of us are a little concerned that they may act without further word from the company. Can they do that?

Perhaps something for the FOS too.

She's absolutely sure that all payments have been made. She paid them by cash, direct into their account each month - except the first, which she paid over the phone, and that's the one she forgot to ask for a receipt number. However, the amount did go from her bank, which she can prove. All other payments have a receipt, and I also marked them off in the diary.

 

Many thanks for help and advice x

(Will be here tomorrow, well, today actually, Thursday. Out all day Friday though.)

[Ripley2008]

'Around', for the remainder of the day

[Ell-enn]

Hi there, sorry for delay. Affixed is the letter to solicitors - send by recorded delivery and keep a copy of everything you send.

 

You will need to affix a copy of the letter that was sent to the lender and also proof of all the payments made.

 

Any questions, just shout

 

Ell

Ripley 2008 letter 17 Aug.doc

[Ripley2008]

Hi Ell,

No problem. I knew you'd get here when you had the time.

I've printed it and added all the relevant paperwork. She will be over in the morning to sign and post it.

 

Many thanks again, will keep you informed on response(s)

 

TC Paula

[Ripley2008]

Hi Ell,

Hope you are keeping well.

 

My friend received a reply from Derbyshire Home Loans today basically acknowledging receipt of her letter and stating that they will investigate using their Internal Complaints Procedure and that it may take up to 4 weeks to complete. May be sooner though.

 

However, the problem today is that she also received another letter from them, albeit a different dept.

This states that "having checked our records I note that a reply has not been received" ... (obviously not very well).

and "unless they do within 10 days further action for recovery of the same will be taken".

Stating that arrears of this nature result in an increase in the mortgage balance upon which interest is charged on a daily basis

 

Should we respond to this letter?

 

TC,

Paula

[Ell-enn]

Send them a copy of the letter you sent and the reply you received

-recorded of course- with a covering letter (resist the temptation to point out that their record checking leaves something to be desired!!)

[Ripley2008]

Thanks Ell, will get that done in the morning.

 

TC