Dave and Cath and SPML (ERC and charges) **SETTLED**

[catherinebear]

Hi there

 

We have written to SPML requesting ERC of £1200 on a Second Charge which we had with them, they have written back today saying no they do not think they should refund the money, but they sent copy statements which was extremely interesting as in a period of 23 months that we had the loan with them they have charged us £1130.00 for unpaid direct debits £25.00 and for arrears management fee £65.00 some months they have charged this twice. Has anyone else out there had this situation where they are attempting to claim back the ERC and then discover there is as much to claim back again in unnecessary charges. If so what did you do next please? By the way we loaned £15,000 and ended up paying them back some 23 months later £21,000. No wonder there are no poor banks out there people!

Many thanks

Catherine and Dave

[paddym]

catherine get the letters typed up and reclaim your charges back and go for you ERC ! you can of course claim them back seperatley !

[zootscoot]

If this is under 25K this is governed by the CCA 1974 and they should not be charging an ERC.

[essjaysea]

The regulations that applied to ERC's for regulated loans, ie those under 25,000, changed in May 2005. After this date, lenders have only been allowed to charge 1 month's interest as an ERC.

 

Loans that were completed prior to May 2005 are still likely to attract ERC's, if settled within 2 years of completion, that amount to 6 months interest under Rule 78 that was written into the 1974 CCA

[catherinebear]

Sent letter asking for £1774 in charges back from SPML and also sent 2nd letter saying that we intend to do a MCOL for the ERC of £1200. We originally loaned £15,000 plus arrangement fee of £750! and some 23 months later ended up having to repay them ££20,151.94!! we are obviously in the wrong line of business!! Good luck to everyone.

CatherineBear

xx:rolleyes:

[zootscoot]

If its a pre May 2005 contract the CCA 1974 applies. if the ERC is calculated in accordance with rule 78 there is nothing that a court could do to make them return the ERC

[catherinebear]

Thank you for your message Zoot. Is this because this is a second charge and is not considered a mortgage as in our case with GMAC and Kensington? So would we better just to pursue for the charges they have made for late payments? Your help would be appreciated.

Many thanks

CatherineBear

xx:confused:

[zootscoot]

Hi catherine,

 

Most mortgages under 25K are regulated by the CCA 1974. You might want to check with Trading Standards to see if they calculated the redemption charge correctly first although chances are they would be correct.

 

You can still claim the late payment fees in any event.

 

All the best

 

Zoot

[catherinebear]

Thank you Zoot checked and as you say because this is under £25,000 we cannot claim ERC but have requested back £1,750 in charges!! they have made on our account. Are there many successes yet Zoot on the ERC front reading the threads there seems to be more hope than there was initially.

Many thanks

Catherine Bear

xx

[catherinebear]

Hi there

 

Have served MCOL for charges have had acknowledgement and they have until Christmas Day to file a defence!! Merry Christmas!! I hope not for SPML! gOOD LUCK TO ALL OUT THERE FIGHTING THE GOOD FIGHT.

 

cATHERINE bEAR

XX:)

[Les Gunn]

Good luck to you catherinebear!

 

[catherinebear]

Hi there

Couldn't claim back ERC as this was under £25,000. So issued mcol for the charges they had taken during the course of the loan this amounted to £1783.00. Received a letter on Sat morning from their solicitors saying that they have to file a defence by 26th Dec! They want us to grant them an extension of 28 days until the 23rd January and if we do not agree they will put an application into Court and will seek an order for us to pay the costs of such an application. Can anybody advise what they would do. We are inclined to say no to the extension but are we just making things more difficult?

Many thanks

Catherine Bear

xx

[zootscoot]

Hi Catherine Bear,

 

This happened to several people a while back claiming from SPML. I think the approach taken was to offer them 14 days and no more. This has the advantage of showing you are acting reasonably, it is nearly christmas after all! and also showing that you won't be walked over. Its likely that with the Christmas break things will be delayed in any event. I can't see anyone processing a judgment by default on boxing day!

 

Have a look through Les Gunn's claim against SPML he's a little further on than you.

 

All the best

 

Zoot

[joanneclaire]

They want us to grant them an extension of 28 days until the 23rd January and if we do not agree they will put an application into Court and will seek an order for us to pay the costs of such an application. Can anybody advise what they would do. We are inclined to say no to the extension but are we just making things more difficult?

Many thanks

Catherine Bear

xx

 

Hi Catherine,

they did the same to us, for me this was bullying tactics and they try to frighten you into giving them what they want.

 

I spoke to the courts as there paragraph worried me about seeking an order for me to pay the costs. Bascially the nice woman at the courts advice line said, if they ask for an extension from the courts, it is basically upto the judge whether or not they get one, they dont always necessary get one, they have to pay £65 for this application and when they ask for the extension they can ask for this cost to be met by you (the claimant)

 

However, this again, is subject to them winning the case, if the judge decides SPML wins the court case, then you probably will have to pay the £65 (judges discretion) but if they lose (which is the more likely scenario) in ours cases and they dont have a leg to stand on, then they carnt make you pay the £65 because they lost the case!

 

so basically, they put this in the letter to try to frighten you into automatically giving them an extension so they dont have to stump up £65. I did offer them a 7 day extension, but they declined and went for the extension anyway.

 

Joanne

[Fullyskinted]

The regulations that applied to ERC's for regulated loans, ie those under 25,000, changed in May 2005. After this date, lenders have only been allowed to charge 1 month's interest as an ERC.

 

 

Err, Im sure the mortgage I just signed up for has more tie ins than one of Houdinis old outfits! How is this possible??? Should I go check?

 

Dumbass. I just reread that. My mortgage isnt under £25k

[catherinebear]

Hi all

Had leter from sols asking for extension agreed but have now had a response from th Court saying that they have filed a Defence but we have not received it yet! Got the Allocation Questionnaire to complete has anyone got any help with the wording forthis in relation to chares or is it the same as whe we did, the Abbey? Thanks for the help.

Catherine and Dave:)

[dogwash]

Hi catherinebear. I completed my aq the same as the Abbey just reworded it a bit for ercs. However I would see what zootscoot advises as these Defences are now becoming a lot more complex. The solicitors are now coming up with all sorts of legal points (desperately clutching at straws!). The Defence I received was very weak but that was prepared by GE's original solicitors who not long thereafter were "sacked" and Eversheds took over - they are real bully-boys and will do their best to intimidate you and "blind you" with legal jargon. Good Luck.

[Les Gunn]

Catherine & Dave,

 

If you haven't received their defence yet (am I right in thinking it's SGH, the same as a few of us??) - they are pretty slick at copying you in, so if not, email them and request it:

 

[email protected]

 

I will bet that they apply for a stike out of the claim, like all of us. Strength in numbers though and I hope their solicitors like travelling all over the UK!

 

[catherinebear]

Hi everyone

Sorry I have not been on this thread for a while but I have had a car accident and been in hospital feeling a bit sorry for myself as I have injured my neck and have enough problems wih my spine and neck already! Have heard from Court and have reserved the papers as Southern Pacific say it should have read Personal Loans and not Mortgage! now just waiting to hear from them with any further news.

Good luck to all out there fighting the good fight.

Catherine

xx:)

[mrsfoot]

HI Catherine

 

Sorry to hear about the crash, hope your feeling better soon. It can be very dibilitating when its the spine and neck, but im sure you will be up fighting fit again.

 

Just as a side, have look over other threads re ERC (im sure you have) but some things have moved on since your last visit.

 

Take care and get well soon

[zootscoot]

Please read before continuing:

 

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

[catherinebear]

Thank you for your message Zoot

Read the thread! Have decided to hold fire on all the ERC claims at the moment but do you think it is still okay to keep going with regards the charges question. Southern Pacific (£1903) Kensington (£2455) GMAC (£1668). I understand the FSA is due to make a ruling at the end of Feb which I hope will help us all as it did in the bank charges question. With regards to taking action against them on ERC count me in anythin I can do to help I will do so.

Many thanks

Catherine and Dave:)

[catherinebear]

Help!

Have a couple of claims we havn.t filed yet wanted to revise the figures and went on tothe on site caculator but it does not go up to 2007! can anyone help please?

Catherine Bear

[zootscoot]

Hi Catherine,

 

With regard to the other charges I'd hold off for now. I now Kensington and Southern Pacific have clauses in their contracts allowing them to claim all legal costs from borrowers incurred from any matters arising in connection with the mortgage. I am currently putting something together to send to the FSA asking them to review whether such terms are lawful. Until we've had a response I would suggest that its still too risky tackling charges as under such terms they can recover their legal costs from you even if you win.

 

All the best

 

Zoot

[bandonbhoy]

I have prrof hearing on 1st march against sppl for 190 in d/d non payement charges. Would your advice be to not proceed with this becasue as you say they have clause in their conditions, even though i would need to ask them in court toe xpalin thier charges and how the charge is a represenetation of thier actual loss?