Urgent help. Mortgage say charges are fair and threaten to charge for court costs

[Tessy1]

My husband has filed N1 form against his mortgage lender for unfair charges after they rejected his initial claim.

 

 

We have received a bundle from them last week followed by a threatening letter yesterday saying charges are fair

and he would be liable for their costs if he does not discontinue his claim by a deadline given.

 

What does he do next.

 

 

Should he continue with the claim or write a letter to reduce the amount of initial claim

and what case law can he prove to back up his rights on this.

 

 

Thank you in advance

Edited August 13, 2015 by honeybee13

[honeybee13]

Tessy, I've unapproved your second thumbnail as it has a ton of personal information in it, reference numbers, lender's name and so on. Please blank these out using something like Paint and repost it.

 

HB

[unclebulgaria67]

Value of claim issued ?

[SabreSheep]

IN order to help we need to see (without personal details) your Particulate of Claim.

 

ALso what did you claim for in your letter and how was your claim amount broken down (Not amounts just the headings)

 

BUT

 

if this is under £10k claim then should in small claims limit any exposure to costs

[Tessy1]

Here is my POC and the SOC attached. Thank you and Apologies for the first post.

Particulars of Claim

Unlawful Charges

 

1. The claimant had a mortgage agreement with the defendant dated …… concerning a secured loan of £…….

2. The said loan is subject to the Unfair Terms in Consumer Contracts Regulations 1999 (UTCCR)

3. The defendant is statutorily bound by Financial Services Authority regulations – mortgage: Conduct of Business rules (MCOB) contained in the FSA Handbook, implemented under the Financial Services and Markets Act 2000

4. The mortgage fell into arrears after the claimant fell into difficulty and was unable to keep up the repayments as required by the mortgage agreement.

5. The defendant levied mortgage arrears charges against the claimant.

6. The defendants also levied further interestupon the said unlawful charges

7. The mortgage arrears charges were levied at a rate which exceeded their administrative costs.

8. The level of the charges were unfair because they breach the requirement of fairness contained in UTCCR

9. The level of the charges is also unfair because they are the result of unfair treatment by the defendant and therefore levied in breach of the defendant's statutory duty to treat their customers fairly contained in MCOB

10. For these reasons the interest charged on the unlawful charges is also unlawful

 

I therefore claim the following:-

 

a) Arrears charges £363

b) Restitution Interest @ 24.9% £755.58 as per the case of Sempra Metals Ltd v Inland Revenue Commissioners

 

Total of claim £ 1,127.47

plus 8% statutory interest = £575.46 (£1,127.47 x 0.00022 x 2320 number of days passed) = £1,702.93

© Court costs = £115

Total of Overall claim = 1,817.93

I believe that the facts stated in these particulars are true.

[caro]

Claim is under £10k so they're bluffing. I'm guessing the letter is without prejudice so you can't show the court they're making empty threats that they know they can't follow through.

[Tessy1]

Thank you caro. Please what do you suggest ?

[caro]

Ignore it and proceed. I've asked for someone with better legal knowledge than me lo look at the POC. When was the N1 submitted to court?

[Tessy1]

Thank you caro. N1 was sent around early last month.

[caro]

Have you had their defence from the court?

[Tessy1]

Yes. It was received last week.

[caro]

Can you post that up too please.

[caro]

Courtesy of slick.

 

I think the 8% Stat'y Int't claimed is wrong.

 

They should only claim the 8% simple int't on the amount claimed, from the date of claim to settlement.

 

It looks like they've claimed 8% from around April 2009, as well as compound restitutionary int't.

 

This can be sorted in settlement negotiations if nec'y.

[slick132]

Post up the Defence as a PDF doc't.

 

What lender is this ?

 

[Tessy1]

The defence is a large document with several confidential details.

 

 

The lender is Mortgage Express.

 

 

Initially, I thought this claim will be like the credit cards penalty charges claims. It's beginning to look difficult with what caro explained.

[caro]

If you mean your personal info can you post it up with that hidden? Otherwise I'm not sure how we can advise.

[slick132]

Hi Tessy,

 

The claim is not dissimilar to a CCard claim but all cases should be treated as individual and unique. There's no one solution that fits all cases.

 

We need to see the Defence and you should post it as a PDF after carefully hiding personal data.

 

The interest you have claimed is not right but this can be addressed as necessary during the the progress of the case.

 

[Tessy1]

Thanks caro and slick.

Here is their defence attached below. Page 1 will follow in the next post.

[Tessy1]

Thank you. Here is page one of the above.

[SabreSheep]

After skim reading it, it appears their defence is weak and full of waffle.

 

You will elaborate on your legal arguments in your skeleton argument and full disclosure. Their arguments that the fees are industry standard holds no weight. The fact you did not go to FOS holds no weight.

 

Correct me If I am wrong but OFT V Abbey 2009 applied to CURRENT ACCOUNTS ONLY

 

Their argument that the interest rate is excessive and limit to statutory interest only is incorrect. You list the case where compound interest and restitution is accepted. As for the interest rate, as long as you can demonstrate that the company offers financial products at the %APR you are claiming (or Greater) then I would certainly be holding ground on the interest rate.

 

Others will confirm (My experience is based around CC reclaims only) but this looks like twaddle designed to scare you.

 

Start reading up the case law to support your claim and also read up on the abbey case and understand how it applies only to Current Accounts and is not applicable here. Have that information ready so that when it comes to mediation you can show you know what you are talking about..

 

I would then send a letter politely saying you do not feel they have understood your case and without any further contact will continue your claim.

[Tessy1]

Thank you so much SabreSheep.

I would read up on the abbey case and will look forward to sending the letter to them.

[caro]

OFT v Abbey and others is most definitely about current account charges.

 

Go through their arguments one by one so you can answer all their points if/when it gets to court.

[Tessy1]

Thank you caro.

[Tessy1]

Hello, do I need to mention about the POC as they said our POC does not comply with CPR 16.4 and PD 16 on Post 18 page 3 down. POC sent is on post 5.

 

 

Hi SabreSheep,

According to post 20. How do I back up the argument that the interest rate is excessive and should I tell them the compound interest and restitution is accepted.

[Tessy1]

Can someone help with the above. Thank you