Help With Erc Please - Can I Claim?

[stuflo]

Hello, newbie here.

I need some advice about claiming ERC on a Secured Loan..

My wife and I had a secured loan on our property for £45,000.00 which was repaid on 14th July 2006.

We still have the settlement letter from the company and as we remortgaged we borrowed enough money to repay the secured loan. We were shocked that in order to settle this loan we had to pay certain early charges back. This was made up as follows:-

Interest added to the date of settlement 310.72

Future charges 1,941.79

Amount of Rebate nil

Legal sealing fee 120.00

So in total we paid £2,462.51

I understand the sealing fee does have to be paid but why the redemption fee was so high I don’t understand. We only had the loan since November 05 and redeemed in July 06.

It was with Endeavour Personal Finance and they say: “The settlement date used in calculation of the rebate is 14th July. It has been calculated in accordance with Regulation 3 of the Consumer Credit (Settlement Information) ??

FUTURE CHARGES The amount of interest charged if the loan had run it’s full term

without variation.

LESS AMOUNT OF

REBATE The amount of interest that is cancelled because the account is

being settled early. The difference between the future

charges and rebate is the proportion of future interest you

pay to settle your account early. The rebate has been

calculated in accordance with the Consumer Credit

(Settlement information) regulations 2004. This also

includes your insurance premium rebate (if applicable)

Would I be able to reclaim these charges back? Any help would be most appreciated.

[ellielou]

I think the interest would be payable as it'll be the interest between your last payment and when you settled but how they can justify charging you 'future charges' I've no idea, seems they'll try and get away with anything.

 

I'm guessing this is equivent to an ERC - if it is I'm sure you could claim it back - I'm also sure that someone with a little more knowledge will be a along shortly with some more constructive advice.

 

Good luck Stuf

[stuflo]

Any one else know for sure if I can claim this money back? Can any of the moderators help? I want to get letter out asap if I can and get the ball rolling.

 

Cheers:)

[nathal]

it must be an erc

 

so go for it

[zootscoot]

As your loan is over 25,000 it is outside the scope of the Consumer Credit

(Settlement Information) Regulations 2004.

You can not claim the interest up to settlement but you should be able to claim future charges as these do not represent a loss to them as they are under a duty to mitigate their loss by relending the money elsewhere.

All the best

Zoot

[stuflo]

Zootscoot - thanks for the advice - will send off preliminary letter today and see what happens:-)

[stuflo]

After sending off Prelim letter on Monday 6th, received letter back from Endeavour personal Finance this morning - stating they are concerned to hear of our complaint and have passed our letter to their solicitors for a full invesigation - even state the solicitors name who is dealing with the matter, who will be in touch within 7 days.

 

I think they were quite speedy to pass it to their solicitors to look at - has anyone else experienced this and would anyone like to comment on this.