Mortgage Arrears Charges and Simple Interest - Is it legal and fair?

[n377y]

Mortgage Arrears and Simple Interest - Is it fair?

 

Took out a secured loan for £10,000 6 years ago. After initial application was accepted we were offered an extra £6000 which we agreed to. At the time I was concerned that we had been issued with two loan separate loan agreements - I wasnt happy with this and voiced this to the loan advisor and was basically reassured that this was just an administration technicality and would not make any difference. He even sent me argos vouchers as a sweetner.

 

12 months later my husband left me and our business collapsed leaving myself and 30 of our staff redudant. I was absolutely financially destitute. He financially abandoned me and ever since I have been fighting one legal battle after another, keeping the wolves from the doors. I have single handedly paid off all our joint debts.

 

5 years later and I have made the necessary 72 repayments but I am left with a balance of just over £4k. This includes interest, charges and simple interest.

 

What I need to establish is it it all fair.

 

Loan payments where late from December 2007 to May 2008 by around 2/3 weeks. I was charged £50.00 collection charges on each loan.

 

From May 2008 - June 2009 I could not make any payments whatsover.House was put on the market as I saw this as my only option. £50 charge on each loan per month was applied.

 

June 2009 agreement was reached, I reinstated payments and started to pay off the arrears. Continued to apply charges, but agreed to reverse them if I maintained the agreement.

 

April 2010, cleared the arrears. Asked about the charges and they advised I could pay them off at the end of the loan.

 

Im now at the end of the loan and still owe just over £4k. They have reinstated the charges made from June 2009 - 2010 but no more.

 

I have several questions:

 

Was it fair to charge me on each loan account - I was paying £100 per month in charges? Surely there is no more work involved in chasing payment for two accounts as oppose to one account?

Was the amount that they charged me a fair amount - it seems very high?

Also because I have had so much information off them (in one month I had 10 pieces of correspondence) I have overlooked that they have also been charging simple interest on the charges! As a result, I didnt realise that by leaving these charges until the end of the loan period, I was still being charged interest on them.

 

I was treated appauiling by this company, I was never shown any sympathy, in fact I almost felt bullied by their "callers" and felt that they "harrassed" me at an extremely difficult time. I responded to every call they made - I gave them every bit of information I could, but unfortuantely for a long period I could pay them no money and therefore did everything I could to sell the house. When circumstances changed for the better I offered them the maximum I could afford which included paying the full monthly payments plus a further payment towards the arrears . I was advise that it was not enough and that the arrears would have to be paid within in minimum period of 12 months. They therefore took me to court for repossesion. Thankfully it was not granted and was adjourned on the terms I had previously offere them. Despite this however there are legal fees also on my statement, which could have been avoided had they accepted my proposal.

 

Any advice would be greatly appreciated.

[ims21]

These charges are an unfair penalty and should be claimed back with interest.

 

Start you research here

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?296108-Hot-news-for-anyone-who-has-suffered-mortgage-arrears-charges-irresponsible-lending-or-other-unfair-lender-conduct

[n377y]

In 2007 my husband and I took out a secured loan for £10k.

At the applications stage we were offered a further £6k which we also agreed to.

 

Payments commenced

 

but a year later my husband and I separated, and on the back of this our joint business collapsed.

 

Emotionally I was in a mess, financially I basically had £110 per week to live on.

 

Buisness and personal debts mounted up around me and

within a further 12 months I was given 56 days notice of repossession on the house.

That was November 2008, ironically my wedding anniversary.

 

Just over four years on and miraculously I am still in the house,

I have worked solid for the last four years moving up the career ladder to earn more money to pay off the debts and keep a home for my children.

I am straight with the mortgage, and I have just made the final payments on the secured loans.

 

However .....

 

I still owe £4200 in charges and interest due to the arrears that I was in from June 2008 to April 2010.

This is another 25% on top of what I borrowed.

 

I have had my head in the sand the last few years over the charges, because this company took me to court too in 2009,

and tried to get a suspended repossession order.

 

Since that time I just wanted to get the loan paid off and move on but to get to the end of the loan term

and discover I still have another £4200 to go is heartbreaking.

I cant believe that they can capitalise so much out of my misfortune.

 

Also what is strange ,

is that I cancelled my direct debit in December when the loan term was up and then wrote to them for a statement.

 

They have sent this which is very confusing as it shows interest, simple interest, charges, repayments etc.

BUT they have not asked for any money off me.

 

They have not chased me or questioned me about repayments and when I have rang them for information

they still have not asked me when and how I am going to pay off the charges etc.

 

It feels like the calm before the storm

- but I am wondering if there is something not quite right about these charges

and that that is why they are not chasing me.

 

I've read some information on here about unfair mortgage charges,

but dont know if this applies to second charge loans and also Im not sure if I have a genuine dispute and if I can dispute them.

 

I tried disputing the back in 2010 but gave up instead of taking it to the FOS.

 

The FOS say that if I show mitigating circumstances as to why I did not pursue it at the time they will look into it, but I read information on here saying the FOS is not very credible.

 

So - I dont really know what to do next.

 

Any advice would be much apprecaited.

 

Netty

Edited March 5, 2013 by BRIGADIER2JCS
edited date

[n377y]

Error in dates arrears where from June 2008 - April 2010

[BRIGADIER2JCS]

Error in dates arrears where from June 2008 - April 2010

 

corrected for you.

[dx100uk]

no you dont have to pay them

 

have you ALL the statements

 

dx

[n377y]

Thanks DX,

 

can you enligthen me further please.

 

I have a got the original agreement,

 

the paperwork from court and

all the statements and

letters etc. I

 

also requested a full breakdown a month ago,

 

so they have sent me a statement that gives full month by month summary of what they have charged me.

 

Netty

[dx100uk]

who ae they please and we'll put you in the right forum

 

then you can read other members threads

 

dx

[n377y]

They are Central Trust -

[dx100uk]

so looks like they are another name for loans.co.uk.

 

which in most cases are linked to GE money.

 

dx

[dx100uk]

just to fill in the story

 

who took you to court?

 

dx

[n377y]

I would not know, I know they have been known as CT Captial PLC, Central Capital Loans and Central Lending Service.

 

Ive been treated very badly by this company, and its painful just tackling this now as it reminds me of how insensitive they have treated me.

 

Since paying the arrears up in 2010 I have not had any contact with them until now.

 

It upsets me to recount how they treated me,

how they spoke to me,

how they threatened me

and it unerves me now that they are being so cool,

I feel like something is going to my disadvantage is going to happen.

 

I need to deal with this quickly it is causing me alot of anxiety.

 

Netty

[dx100uk]

if you have been done over

 

we need as much info as possible

 

you say you have the court documents

 

look at the claimants name, who was it?

 

did you KNOW it had gone to court

were you invited to attend?

 

might be an idea to get scanning particularly the statement from date one

 

then we can start to hit back

 

to me this all sound very fishy.

 

set your default scan page size to A4 less than 300DPI [150 will do]

scan the required letters/agreements/sheets - as a picture[jpg] file

don't forget you can use a mobile phone or a digital camera too!!

'

BUT......

ENSURE: remove all pers info inc. barcodes etc using paint program

but leave all monetary figures and dates.

*********************************************************

{DO NOT USE A BIRO OR PEN OR USE SEE THRU TAPE OR LABELS]

try www.pdfescape.com TO BLANK STUFF,

*************************************************************

or

DO IT IN MSPAINT.EXE or any photo editing program

goto one of the many free online pdf converter websites ...

http://freejpgtopdf.com/

if you have multiple scans/pics

put them in a word doc FIRST and convert that to PDF

or use www.pdfmerge.com

convert existing PC files to PDF [office has an installable print to PDF option]

..

 

it would be better to upload a multipage pdf if

you have many images too rather than many single pdfs

.

or if you have PDF as an installed printer drive use that

or use word and save as pdf

try and logically name your file so people know what it is.

though dont use full bank names or CAG in the title

i'e Default notice dd-mm-yyyy TSB

.

open a new msg box here

hit go advanced below the msg box

hit manage attachments below that box

hit the add files button on the top right

hit select files, navigate to your file on your pc

hit upload files

.

dx

[n377y]

I successfully defended mortgage possesion in 2009 and do have the paperwork.

 

I have made the 72 payments on each loan but at the end of the loan period still have an outstanding balance which is around 25% of the original loan

and is made up of charges, interest and simple interest.

 

In terms of paperwork it completely fills a box file do you suggest I scan everything or just key documents.

[dx100uk]

p'haps the statements of the mortgage

 

so we can look for things to reclaim

 

and prob question other things as it becomes necessary.

[n377y]

I am currently going through all the paperwork

- there are reams and reams of it

- so that I can arrange to scan the key documents.

 

One document I have come across is the N24 General Form of Order

in which is was order that

 

"Claim adjourned on terms the Defendents pay the current monthly instalment + £86 per month",

for which I have now completed in December 2012.

 

It does not make any reference to the interest, simple interest or charges

- does this mean I do not have to pay them?

[dx100uk]

looks like it.

 

dx

[n377y]

Is there anyone who could give me some legal advice please. Netty

[BRIGADIER2JCS]

Would not the monthly installments be partly interest anyway???

[n377y]

I queried this and they advised:

 

"In relation to the interest charged each month

 

your payment covers the interest due on the loan,

the whole of your monthly instalment does not come off the loan balance

 

each month you pay interest towards the loan,

 

initially you pay more towards the interest on the loan

then as the loan progressed through its term

more comes off the balance as less towards interest.

 

The "simple interest" payments you see on the statement relate to interest charged on the collection charges,

 

for the first 28 days we are not allowed to charge interest on Collection Charges

to give the customer the opportunity to pay the Collection Charge

 

after this time we can charge interest each month on the Collection Charges which remain unpaid."

 

Im afraid I find it all very confusing.

[n377y]

Please can someone advise me? Do I need to consult a specific type of solicitor, or should I go through the FOS? I just need pointing in the right direction. Netty

[dx100uk]

someone will pop in soon

i have asked someone.

 

dx

[n377y]

Thanks dx I do appreciate the support.

[dx100uk]

if the N24 supersedes the Judgment...I you state on the thread that you successfully defended the mortgage Possession.

 

..soooo if the N24 is dated post judgment then that's the bottom line if its pre Judgment then the Judgment Order has the last say on payment arrangements.

 

so i have been told

 

dx

[n377y]

Mmmm I think I understand.

 

They made a claim for possession and the hearing date was set.

 

However during the run up to the hearing date they did a U turn and accepted my payment proposal

however they wanted this secured by way of a suspended possession order.

 

I argued against this and the judge adjourned it on terms

- the terms where that I paid the monthly installment plus £86.

There was no mention of additional interest, simple interest or charges on the N24.