alyhalfpint vs Principality ERC

[alyhalfpint]

I have read others threads regarding early repayment charges with great interest. We paid an ERC of about £1700 with the Principality back in september on a mortgage that if we redeemed in november would have been nothing. I think we redeemed it about 6 weeks early. For some reason I'm more apprehensive about trying to claim this back that I was over the reclaiming bank charges (£4300 in total from HSBC and Barclays) which I went at like a bull in a china shop. We had to redeem early as we relocated and principality wouldnt lend us the amount we needed (3.5x income, they offered 3x). We struggled with other companies aswell because hubby defaulted on a loan earlier in the year so anyone with a good interest rate wouldnt touch us with a barge pole. As a result we ended up on a self cert with a pretty shocking interest rate, which we agreed we'd put up with for the two year tie in then remortgage when his credit file is clear. Getting our current mortgage was such a nightmare that I suppose I dont want to narrow the market for ourselves when we do come to remortgage. If we get our money back will they say they never want to deal with us again?

I suppose the other thing I'm a bit nervous about is that with reclaiming the bank charges there are hundreds of others around doing the same thing and banks have drafted their own standard reply letters. I've not come across anyone else taking on Principality in the forums and god forbid they may actually read my letters and draft relevant replies to them!!!!!

Having just read back through my post it sounds like I've talked myself out of it, but its just made me more determined to have a go. Whats the worst that could happen - its not like they can close the account!!

Thanks for bothering to read!!!!

[zootscoot]

Hi Aly,

 

As your claim is under the 5k it is relatively low risk for you. The fact that nobody has taken on Prinicpality as yet should work in your favour as they will not have any defences ready prepared and may be less likely to defend. As regarding cutting down your choice of lenders, there are far more mortgage companies around than banks so don't let that put you off.

 

Has hubby tried clearing the default marker from his credit record?

 

Best of luck with your claim

 

Zoot

[alyhalfpint]

We did try doing something about his credit file. It was a load of missed payments (which he never told me he missed) on a loan that was paid off in the april, but when we tried to take out mortgage in the august we were told although it was settled, because it was less that 6 months ago at the time they had to say no because of it. It shouldn't cause any problems further down the line because it will be old by then. Oh and I now know all hubbys banking passcodes so I can keep an eye on whats being paid!

 

About to print off letter requesting repayment of our charges. Cheers zootscoot, its because of your post on my bank charges thread that I found I could reclaim our ERC aswell.

[paddym]

As far as im aware when checking a credit file although the loans show as settleled its a full 12 mths before the missed payments will be of the chart also if any defaults regarding these missed payments were issued they will be on file for six years so if its over a year from loans were cleared go to credit expert web site take the 30 days free trial and get another credit report to see the outcome !

[alyhalfpint]

Sorry I'm a bit slack on updated these things. Sent off an intial request letter asking for repayment. No reply from Principality so LBA is sorted ready to be sent off tomorrow by recorded delivery.

Thanks for advice paddym. We have already used our free trials for the credit file but intend to get another copy in a month or so's time to make sure HSBC havent entered a default against hubby. They got funny with us after 2nd bank claim against them and closed the current account. I did make it clear to them that they shouldn't enter a black mark on credit file a number of times through several snotty letters but never had any confirmation from them that they weren't going to.

[zootscoot]

Make sure you read this read particularly p.7

 

http://www.consumeractiongroup.co.uk/forum/mortgage-companies/27030-harsh-letter-received-kensington.html

[alyhalfpint]

Sent off LBA on22nd Jan by recorded delivery as had no reply from Principality. Had a letter back fron them dated 24th Jan saying they had sent me an acknowledgement letter on 9th Jan in reply to first letter and apologised if I hadnt received it which I hadnt. They did enclose a copy of their original letter which I wont bother posting unless anyone wants to see it, but it just states in point form their understanding of my complaint which is pretty damn accurate. Finally a company that actually reads their letters and gives proper replies and not just bloody templates off file!

Letter also says that they have 8 weeks in which to resolve the matter which I think is fairly standard (I remember Barclays saying the same about my bank claim) but that they would write to me within 4 weeks to keep me up to date.

Had their update letter through the post today saying they are in the process of gathering further information and reviewing our client file. They will write to us again within the next 4 weeks.

According to my original timescale I should be starting court proceedings now but have decided to go with the 4 more weeks that principality have stated. Its not because I'm a soft touch, its just because I'm due to give birth in 3 weeks time and quite frankly I have enough to think about at the moment! I will then issue another LBA (probably) in response to what is bound to be a refusal and take it from there.

I have read through other threads especially those against Kensington and they do seem to be fairly brutal in defending these but I figure my claim is incredibly low compared to the amounts that others are trying to reclaim and that mine will stay within the small claims track.

I feel hard done by that we had to pay £1579 to get out of our mortgage, I cant begin to imagine how I'd feel if we'd had to pay 7-8K or more for the privilege!

[dolly]

Mine is not much higher than yours (£2.5k) and they are trying to get it in multi-track.

 

I would think very, very seriously about starting a claim at this moment in time. Just because it is under the £5k limit sadly does not mean that it is guaranteed to get allocated to there. .

[alyhalfpint]

I'm starting to realise Dolly! Haven't visited this site in a few weeks and it seems a whole lot has changed since I last logged in. I'll keep on with the paperwork and see how the land lies when I do get to MCOL stage. Everything might have changed again by then...