Mr GS v Chelsea BS (reclaiming ERC's)

[garystacey]

Hi all

Fresh from my success over Nationwide BS for reclaiming my bank charges I've decided to see if I can reclaim my early redemption charges from Chelsea BS.

Basically I took out a mortgage with the Chelsea around May 2004 as with my credit score they we're one of the few that would touch me. I then remortgage around September 2005 as my credit score improved.

My mortgage was a "prospect 1% discount for 12 months off variable rate + 0.50%". Base rate @ 6.240%.Total rate 5.740%. I borrowed £120500 over 25 years - repayment mortgage.

In the offer it did state should I repay my mortgage within 3 years then there would be an additional fee. 1st year @ 5%, 2nd year @ 4%, 3rd year @ 3%.

My redemption statement reads:

start of year balance £120055.38

interest £5907.45

redemption interest £4802.21

discharge fee £175.00

LESS repayments/sundry credits £-7494.81

REDEMEMPTION AMOUNT £123445.23

 

What I'm unsure about is whether I have a valid claim to reclaim my early redemption charges (redemption interest @ £4802.21)??

 

I've read through numerous over message on the forum but its still seems to be a very grey area.

Can someone please give their opinion before I send out my preliminary letter.

 

Many thanks in advance. :?

[sammyjammy]

I'm not sure what you have read to make you think that but yes you can try. Claiming back ERCs is still relatively new and untested although there are a few on here that have had successful claims. My own ERC was £2035 made up of 6 months interst and I'm currently trying to get this back as we speak, you can send the template requesting the return of the ERC straightaway as you have all necessary information. Check out Zoots halifax settled thread which has examples of templates.

 

Good luck

 

Sam

[garystacey]

Preliminary letter typed & envelope sealed.

 

Lets see what their response is.

[garystacey]

I've received a reply from the Chelsea BS (Richard Gould - Head of Residential Mortgages) stating:

 

...sorry to learn of your dissatisfaction with the service provided by the the Society.

 

I will be investigating your complaint & I hope to provide a full response within the next 14 days. In the meantime, I enclose a leaflet that gives full details of the Societys Internal Complaints Procedure & your right to refer this matter to the financial ombudsman service id we can not resolve your complaint...

 

My next question is do I wait for their response or do I send out my LBA letter once the initial 14 days from my prelim letter have elapsed?

[zootscoot]

Stick to your own time table otherwise you'll still be waiting by Christmas!

 

Best of luck

 

Zoot

[craigamc]

I have attempted to reclaim my charges from the Chelsea.

 

I got a standrd reply from customer relations, we are investigating and will get back to you within 14 days. I still had to chase them for the their reply.

 

The reply eventually came from General Manager @ Chelsea BS and basically was a definate no refering me to the financial ombudsman.

 

Need to send my LBA now. Fingers Crossed

 

Keep me informed of your progress

 

Thanx

[paddym]

yeah they all are extremely helpfull refering us all to the financial ombudsman i was just wondering why in any of the letters we have all received not one of them has told us that we are entitled to seek legal advice ermmmm i wonder why ? lol

[craigamc]

any luck yet?

[craigamc]

any luck yet?

[garystacey]

Sorry for such a delay I was sent abroad by my compmany so this matter lay dormant.

 

Basically where I.m at:

 

Prelim letter sent.

 

Reply came back as:

Basically saying it was fair & I agreed to the charge at the time etc.

 

Can I still now go on to a LBA?

 

Reading a few threads it seems ERC isn't always successful is this true or chaould I carry on?

 

Soirry for the questions but I've been out of touch with the recent case etc & if any legislation has changed or a presidence has been set?

 

Thanks all in advance.

[zootscoot]

Hi Mr GS

 

I assume you've read this?

 

http://www.consumeractiongroup.co.uk/forum/mortgage-companies/62003-important-mortgage-claimants-please.html

 

Your ERC is close to the 5K mark and thus risks going fast track. Its probably best to leave this.

 

You can still claim charges although check your mortgage agreeement to see if there is a legal indemnity clause.

 

All the best

 

Zoot

[garystacey]

Thanks for that advise Zootscoot

 

Looks like its best to let it lie & aim at my next credit card company insted