~~~**IMPORTANT** Mortgage Claimants ~ PLEASE READ ~~

[gizmo111]

I know the advise is not to claim for early repayment fees at the moment due to the fact thay we may get stung for costs against us, I am in the position that I would get legal aid,does the group think it would be an idea to pursue it in these curcumstances ? It would mean that if they fight it all they way we could end up with a good test case, as would be willing to appeal etc and go as far as required. at least then we will all know for def it its worth doing anything about. On one of my mortages if we settled two months later we would have had no repayment charged but by doing so sooner (had no choise) we got stung for £4,600 , that does not seem fair.

 

I doubt very much if the LSC would approve legal aid for this, and also legal aid is not free, if you lose and have to pay charges LSC will put acharge on your hosue and add 8% interest per year. Course if you win other side would have to pay, but what we have seen so far that is not going to happen in near future.

[maybelline]

Following three recent defeats with ERCs:

 

 

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

 

http://www.consumeractiongroup.co.uk/forum/mortgage-companies/19662-maroonfox5-mortgage-express-lost.html

 

http://www.consumeractiongroup.co.uk/forum/mortgage-companies/36778-charbydis-platform-claim-struck.html

 

It is recommended no new ERC claims are made.

 

The mortgage companies have greater litigation departments and more experience of litigation than the banks and are not going to back down so easily.

 

All fast trackers should withdraw their claims to avoid incurring further costs. Try negotiate out of payment of costs to date. Make an offer to withdraw conditional upon on them not pursuing costs.

 

All those with small claims should also consider withdrawing but should also be mindful of the fact that they are liable for costs incurred pre allocation and therefore they may be better off continuing to trial.

 

Also small claims claimers should also be wary if there is a legal indemnity clause in the contract as mortgage companies are enforcing these to claim their legal costs.

 

Other mortgage charges:

 

There have also been 2 defeats on other mortgage charges:

 

http://www.consumeractiongroup.co.uk/forum/mortgage-companies/36778-charbydis-platform-claim-struck.html

 

 

http://www.consumeractiongroup.co.uk/forum/mortgage-companies/59031-barry-swift-court-date.html

 

Charbydis because 15.00 was deemed resaonable. Barry Paul because he was unable to prove the charge was a penalty. Claimants should be aware that the burden of proof is on them to prove that the charge was a penalty.

 

In addition you should also be wary of the mortgage indemnity clauses in the contract. This can make you liable to pay their legal fees for defending your claim and is likely to be more than any charges you have paid.

 

 

just spotted this, I am not claiming erc but am about to claim a 'mortgage indemnity fee' charged on a secured loan, is this risky, does it mean this could be a problem of some kind, I thought I had a cca (less than 25k) also I have accepted a part payment (approx 50%) from GE on penalties, is it worth pursuing them I wonder,they are adamant they will defend??

[Guest willowb]

Do you have a thread?

 

Wxxx

[maybelline]

several, Welcome Finance and GE Money threads.

[Guest willowb]

Can you link them?

 

Wxxx

[maybelline]

http://www.consumeractiongroup.co.uk/forum/mortgage-companies/39753-buil

dings-insurance-your-lender.html

http://www.consumeractiongroup.co.uk/forum/other-institutions/49345-welcome-finance.html

[Guest willowb]

I've got to go now, but I'll try and help later.....at least now if anyone has any expertise in these areas they have links to your threads to help you.

 

Wxxx

[maybelline]

thanks willowb, we all have real lives even if blighted by unfair charges! I have had lots of help with how to go about my claims but in the light of this erc situation, which may not affect me at all, I am just rechecking. have a good day.

[sparkle201198]

Do i claim redeption fees or not? I no longer have a mortgage coz i split with my husband but we had to pay about 4 grand, can i claim this?

[blue_boy_38]

Ok I am very new here - today - but what has happend when claimnats have gone to the Financial Ombudsman?

 

Why not try this risk free route rather than straight to court?

 

Has the FO issued rulings in the past ?

 

Thanks

 

I am considering a claim based on NatWest's calculation of the ERC. They are using THEIR current (dec 5.19%) 2 year fixed rate offer to base their calc against the rate in my fixed rate deal. For when I redeemed my mortgage in Dec .

 

I see this rate as a simple loss leader to get new customers - not the true costs and they also have a £499 product fee which is a way of keeping the rate artificially low.

 

Thoughts please

[zootscoot]

Do i claim redeption fees or not? I no longer have a mortgage coz i split with my husband but we had to pay about 4 grand, can i claim this?

 

NO!!!!!!!!!

[maybelline]

I have just sent my complaint off to FLA re indemnity fees, hopefully this will be investigated with a positive result, nothing ventured and all that:)

[Bona]

Zoot

I need help, as my case is finnished in the fact that we have sold our house I need to work out an application in the high court to get the mortgages cost assessed like we are having the solicitors cost assessed we have all matteres reserved to a single Judge so to have these costs assessed is the least expensive way to make them come up with how they arrive at their figures and if they are reasonable etc, but I'm not sure how to ask for that can you give me some advice or any one we know that the Solictors have overcharged us by thousands and we will get some back but it would be nice for the mortgage company to have to give us details like the Solicitors are doing, there defence is that the proceeding have finnished but I have reserched this and untill the case is dismissed from the court by a Judge it is not finnished

 

Any Idears

[adey_c]

Are we still holding off appealing against ERC's ?

 

I am buying a house at the moment, and the seller has an ERC of around £4k. I did mention that I heard this cannto be forced upon them, but it seems this thread says otherwise. Looks like the lenders have got heavy and us minnows will feel their wrath.

 

So still a no go is it?

Or any advice you could give me, that I oculd possibly help this chap with?

 

Cheers folks.

[zootscoot]

If they've not paid it yet there is a chance they can negotiate out of it.

 

There is a thread here:

 

http://www.consumeractiongroup.co.uk/forum/other-institutions-successes/44835-g-mac-early-redemption.html

 

Although I would advise against taking court action for recovery. There may also be a chance they could hold up the sale if they dig their feet in!

[RicardoDiaz]

I see that although these cases that have failed some people have got some form of settlement.

 

Is it worth sending a prelim and an LBA but not filing the claim if they dont reply to the LBA?

 

Surely this has nothing to lose? They might give a partial offer?

 

Worst case you have sent 2 letters? Nothing to lose?

[adey_c]

I see that although these cases that have failed some people have got some form of settlement.

 

Is it worth sending a prelim and an LBA but not filing the claim if they dont reply to the LBA?

 

Surely this has nothing to lose? They might give a partial offer?

 

Worst case you have sent 2 letters? Nothing to lose?

 

May I ask what an LBA is please?

[spicester]

Read the FAQ's first LBA is Letter Before Action - step number 3

[doyin22]

I've been away and just logged on to read the bad news and very confussed on what to do next???

I've got two claims for ERC and exit fees - one with northern rock and the other with halifax.

I received a hearing date today against northern rock and the judge refused their application for a telephone conference on the other habd, i received a letter from halifax solictors asking me to drop the case and no fees will be claimed they also attached extracts from this website showing the news above.

 

Not show what to do now?

[Guest willowb]

they also attached extracts from this website showing the news above.

What the? they admitted to that? I mean I know they must be monitoring in some form to to be so blatant about it when they're not supposed to be?????

 

Can you link your threads for Zoot or Gizmo to have a look?

 

Wxxx

[maybelline]

yes attaching extracts is cheeky but it is a public space, I am sure zoot or someone will be able to assist, remember you can PM the mods if nec.

[lickthewallfatboy]

in light of recent frightening events,I've just had a bit of a result.....I can't go into too much detail,but I have been able to settle out of court for £1000 out of a £4200 ERC claim.

 

OK,it's not ideal,but it's better than going to court,losing and getting beaten around the head with a horrendous costs bill.....

 

more details as and when I am able.

[zootscoot]

in light of recent frightening events,I've just had a bit of a result.....I can't go into too much detail,but I have been able to settle out of court for £1000 out of a £4200 ERC claim.

 

OK,it's not ideal,but it's better than going to court,losing and getting beaten around the head with a horrendous costs bill.....

 

 

It certainly is! Fantastic news Licky!

[kennyh]

In our case the defendants defence advises us that " The additional interest payable on early redemption was a payment on a contingency". Does this place the case outside of Gizmos advice that " They don't have to be a genuine pre estimate of losses as they are not a penalty for breach of contract - they can charge what they like - from 10p -£100k it is an explicit term in the contract for exercising your right to redeem."

Do we have a right to have the 'contingency' in question, identified and costed under disclosure rules (The sum is over£10k and we have to have the AQ in by the end of this week if the parties decide to go forward; and YES I have conveyed everyones' advice to quit!)?

An urgent response would be appreciated - I had lost sight of the 'no penalty then they don't have to justify' bit.

[Bona]

What does your original offer and conditions say is there any mention of contingency in them if not surley they have to justify

Bona