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repossession threat v penalty charges claim


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Hi,

I dont know if my situation is unique, but i would like some sound advice and guidance regarding it.

My situation is this....

I have both a bank account and a mortgage account with the A&L, both of which have added 000's in charges and penalties over the last decade or so.

I would like to start the process to claim these back, and have done enough research now as to know how to go about it.

My main problem is regarding the mortgage charges....as i already have a suspended order for possession against me, and am now behind with my mortgage again..:(.

Whilst the arrears are about 1200...the actual charges that have been added to my mortgage over the years stand at about 4000 (including legal fees)..the bulk of this amount however is made up from the £25(now £35) they add to mortgage each time they send u a letter.

My dilemma is...should i start a claim for the charges, given my precarious situation with a possible repo order hanging around my neck?

Or,do i have a case that any repossession attempt by the A&L is unlawful, as it is a claim for an amount that includes unlawful charges (i.e. penalty charges added to existing mortgage balance)?

Should i act now, or wait for the A&L to set a court date for repossession, and then fight it on the grounds that it includes unlawful penalties.

 

Just one more point i've thought of......

If, as i hope, the charges that have been added to my mortgage over the last 12 years are unlawful, then am i right to assume that my monthly repayments since then have been inflated as they include these charges, and have therefore subjected me to pay an increased monthly payment?. My initial mortgage was 28000, but has gone up to 32000+.

So aswell as the charges, ive been paying interest on an amount that is unlawful..is this the case??

 

Help pleeeeeeease!!!!!!!!!!!!!!!!!

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Hi Niggles and welcome!

 

I think the problem you may have is if you are still with the A&L? Most actions taken are normally better if you have moved lenders/banks as there is a great risk they will foreclose on you and instigate repossession proceedings.

 

Hope that helps!

 

Les.

--------------------------------------------------------------

HSBC

Settled in FULL on 8/8/06 - £3619.53

:D

CAPITAL ONE

Settled in Full on 6/9/06 - £84.76

:D

ABBEY NATIONAL (Old N&P Mortgage)

Settled In Full on 2/3/07 - £307.13

:D

SPML

*Court Case Withdrawn - family illness*

MORTGAGES PLC

*Court Case Withdrawn - family illness*

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It is unlikely that the A&L will be able to reposses just because you are claiming back the charges, but the advice on this site is that you do not take action against your current mortgage lender as you may need them on your side at some point in the future!

 

Under s.8 Administration of Justice Act 1973 in exercising the powers under s.36(2)(b) the court only has to consider the sums payable in arrears not any term which may render the full amount repayable.

 

How much of your estimated £4000 in fees and charges are actually legal fees? You may attempt to claim them but In Gomba Holdings (UK) Limited v Minories Finance Limited (No 2) [1972] 3 WLR 723 the Court held that the Defendant mortgagees had a contractual right to recover costs, charges and expenses incurred in the litigation on an indemnity basis.

 

They have a contractual right to add litigation costs and there is little scope to argue that the litigation costs are unreasonable or otherwise punitive - in particular if they can show that this is what they have been billed by their solicitors.

 

My advice would be to quantify precisely how much you are owed in unlawful charges on both your bank account and mortgage account and initially claim the bank account charges and with those, pay off the mortgage arrears in order to get out from under the suspended possession order.

 

At that point you may feel more confident about tackling the mortgage fees and charges.

iGroup (GE Money) - AoS Filed late, defence late, amended defence also late despite extra time requested and granted.

Vanquis - Claim issued, no AoS or Defence received

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Many thanks for the advice. I will tackle the bank charges first. But as both accounts are with the A&L, do you think that starting a bank charge claim will influence them in seeking a repossession quicker than they otherwise would?. And is it safe to ask for an SAR/DPA on both accounts at this stage.

I am aware that i cannot claim back legal fees that have been added to mortgage, but estimate atleast 2000 has been added to balance with the 25/35 a time they charge in sending letters to me in the guise of ....i quote 'administration charge for this letter'. My arrears are 1200.

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It really is impossible to say with any certainty what they may do.

 

I would imagine however, that they would have a hard time enforcing a possession order any faster they otherwise could even if they were influenced by any claim for charges on another account.

 

Nevertheless, should they attempt this, you could always put in a counter claim for the charges and ask for the case to be stayed until they have provided you with the information you need to raise your counter claim. This could be a good tactical move for you as it will delay the court date by which time you might be able to pay off the arrears, alternatively it may make the A&L back off altogether if they feel they are going to be forced to reveal their costs in court in order to pursue you for your arrears.

 

By all means, send off your SAR letters and begin to compile the information on precisely how much you have been charged.

iGroup (GE Money) - AoS Filed late, defence late, amended defence also late despite extra time requested and granted.

Vanquis - Claim issued, no AoS or Defence received

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thanks hagenuk.....just one more point please.

..can my building society enforce the suspended order of possession they already have on my property without going to court?

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Yes, if you do not maintain the repayments ordered under a suspended possession order, then the lender can obtain an eviction warrant without the need for a court hearing.

 

Even then, you may be able to have the warrant suspended or cancelled but it would be better of course if you could avoid this happening in the first place.

iGroup (GE Money) - AoS Filed late, defence late, amended defence also late despite extra time requested and granted.

Vanquis - Claim issued, no AoS or Defence received

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Costs are difficult area we sold our house under a order in the high court which stopped our mortgage company from repossessing it ,we argued that the costs were to high but they took them when the house was sold we have been back to court to get the costs assessed that is the solicitors costs gmac would not allow the judge to ammend our application tho have the m,ortgage costs assessed as well allthough the Judge wanted to .so we will have to make an application on that, but on Friday we got there costs draw up by a cost draftsman on to which they have know added a further 5000 pounds for drawing them up . They are a revalation we believe that they put on charges to make a situation of no equity that way they were sure of being allowed to reposses, or at the least made it look as if we owed more in arreas. If they applie for a warrent to reposses you need to make an application to have is suspended and ask the judge to make an order for them to justify their charges , you could alway write to the company asking for a justification of there charges and tell them that if you dont heve it you will make an application to the court. If a solicitor is taking your money which is what they are doing buy putting costs on to your mortgage I believe that you have a right under the solicitors act for a complete and thourgher brakedown of how they arrived at their costs, on ours the solicitor has charged 580.00 pounds to travel from Cardiff to London for a hearing ( they have an office in London) great isnt it

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  • 10 months later...

i am in exactly the same situation with Abbey, with a hearing soon.

 

they have been charging me £35 pm everytime i am in arrears (sometimes for 6 months at a time) and maybe charges for letters they send.

 

they have sent me a full statement of account as part of the claim so i can work out exactly what they have charged me.

 

these are penalty charges i am talking about, NOT litigation charges which i know they are allowed.

 

i am in the same dilemma. Shall i pay the arrears (i can do so before the hearing) but also put in the defence that i want to claim back charges (saves having to do it seperately) or shall i claim charges back as a seperate claim (which may get stated)?

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