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starting a claim with Birmingham Midshires for excessive arrears charges


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hi there, this week i thankfully with the help of this site managed to get a suspended eviction order with birmingham midshires, our arrears are 6,500, we took the mortgage out in sept 2006 for 110,000.00 and after trawling through our bank statements have worked out we have made in the region of 30,000.00 in mortgage payments, however birmingham midshires are stating that our outstanding balance is 107,323.00!!! when the judge saw this yesterday he was horrified and advised me to get advice on what appeared to him to be very unreasonable arrears charges, and he asked the rep for BM to make sure they comply with this.

I complained to them in august 2011 and they offered me 3011.00 in charges back, and an extra 100.00 pounds because they sent a really rude rep round to hound me into having a meeting with him, i didnt accept the 100.00 or the offer but now they are saying the matter is closed and finished with. Any advice on my next steps would be greatly appreciated

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Your mortgage provider is regulated by the FSA and specifically the MCOBS rules - http://fsahandbook.info/FSA/html/handbook/MCOB

These are legally binding.

 

MCOBS requires that firms do not apply charges which exceed their administrative losses. Read the FSA decisions in Redstone and in DeutcheBank where both of these companies suffered huge fines for levying excessive arrears charges.

 

Read this article http://www.consumeractiongroup.co.uk/forum/content.php?700-Hot-news-for-anyone-who-has-suffered-mortgage-arrears-charges-irresponsible-lending-or-other-unfair-lender-conduct and read the linked reports for a full picture of the situation.

 

You need to calculate exactly what your charges have been - plus any interest which has been levied on them.

Then I suggest that you might amend your defence to include a setoff of unlawful charges and interest.

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Let us know what the charges are and we can help you decide exactly how to frame an amended defence - plus I think a decent sum in compensation. I think that you would also want a judgment showing that the lender is in breach of MCOBS. This owuld be sent to the FSA as part of a formal complaint.

 

Don't start excepting token payments of £100 - or anything else without discussing it here.

I can imagine that BM will start asking you for confidentiality. Don't agree to this. No one ever lost a case or was criticised by a judge for refusing confidentiality. Especially now that the Court has raised the questions of the charges, you are in an excellent position and you should not give up the upper hand which has been given to you.

Don't forget that there will be many others who have similarly been penalised unfairly by their lenders and what you do here will help them too.

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Best to enter everything into a spread sheet.

 

Don't forget that if a charge is unlawful then any interest which has been levied on it is also unlawful so you need to factor that in as well - but separately so that the detail can be understood.

 

Also, you will see that the FSA decisions say that mortgage payments must be paid first and payments towards arrears charges (assuming that they are lawful) is paid off afterwards once the mortgage is repaid. In other words, they can divert payments from your mortgage to satisfy their charges or interest. If they have done this, then this owujld also be a breach of MCOBS.

 

Go through it all very carefully. Understand MCOBS, understand the FSA decisions and then with that in mind calculate your charges, interest and check everything which has ever happened so that you can understand every particular in which they might have broken the rules.

 

Take your time to understand it all and go back to it several times to see if there is anything you have missed. Don't be hassled by the lender. Just do a thorough job. If they contact you then let us know. Don't do anything on the phone. you want everything in writing.

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By the way, did BM offer you the £100 before or after the judge made his comment?

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  • 2 weeks later...

Bear in mind that if you go to court BM will add inflated legal fees to your mortgage whether you win or lose.

If my comments have been useful please click the scales and let me know.

 

Me vs Rockwell/Tessara/RBofS: pending.

Me vs MBNA/1st Crud: Discontinued.

First Direct Overdraft: CCJ won.

IR: 2 CCJs 1 won.

Birmingham Midshires: pending

BT: pending

others to come....

 

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Bear in mind that if you go to court BM will add inflated legal fees to your mortgage whether you win or lose.

 

Sorry, this is not correct. Certainly if you win, these would not be enforceable. If you lose then it would all depend on a number of things. It is not a foregone conclusion.

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thanks bankfodder i will still carry on with my claim anyway, i truly believe they are in the wrong and i am going to stand up for myself and pursue it,

 

We will help you in any way we can

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Write to them, tell them that the charges are unfair under FSA regs. Tell them that you are sure that they know of the substantial fines which have been imposed on DeutcheBank and Redstone for exactly this.

Tell them that by failing to acknowledge the unfairness of their charges and by trying to fob you off with bonbons, they are continuing to treat you unfairly and that when you win you will be forwarding a copy of the judgment to the FSA as part of a formal complaint.

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thanks bankfodder i will still carry on with my claim anyway, i truly believe they are in the wrong and i am going to stand up for myself and pursue it,

 

 

 

well said Star - obviously winning your repo case has given you confidence :)

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My advice is based on my opinion and experience only. It is not to be taken as legal advice - if you are unsure you should seek professional help.

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Yes, well done. And by standing up for yourself - you stand up for all the others who find this thread and will be encouraged to follow your lead.

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