should I claim?

[OLI1879]

Hi,

Recently I just got a mortgage on a new house but kept my previous mortgage company.

 

Mistakenly, they charged me an early repayment fee of £3676 which I paid and they then sent me a refund by cheque. After I paid the cheque in someone cancelled it and it was returned to me with no explanation. My bank deny that they canceled it and so do my mortgage company.

 

The problem was that because the money did not go into my account when I needed it, it caused me to go over my overdraft limit and a lot of direct debits were unpaid. Obviously this caused me a lot in fees, my question is, should I claim these fees from my mortgage company as it was their fault?

[PPMAN159]

As the cheque was issued by your mortgage company then I would assume that they,and only they,can stop it.

 

As such as you have ben charged by your bank then they shoiuld be held liable for them.

 

Good luck

[buzby]

What did it say on the cheque? Ultimately, they had an obligation to pay you - and unless they actually credited you by a different method (and cancelled the cheque because it duplicated payment) they would be in error.

 

As it appears you now have the money - the costs to you of the delay in receiving payment due to the revocation do seem to fall into their lap. What is their response?

[OLI1879]

Thanks for your replies.

The cheque just has "PAYMENT STOPPED" stamped on it

I haven't actually got the money yet, they have said I need to return the cheque with a letter.

I think maybe I should include in the letter that I will be recovering the costs.

[PPMAN159]

Why not-if your mortgage company stopped the cheque and this has resulted in you being charged by your bank then they should be held responsible.

[buzby]

Excellent. Do not return the cheques themselves as in themselves they are worthless, but you may need them as evidence if things go pear-shaped. Send a photocopy of each stopped cheque, explain that the originals are being held in case formal recover action is required.

 

In addition to a goodwill payment to cover your losses, do remember there will be interest due to you in addition from the date the cheque was drawn (until it is finally paid to you). There's no point losing out even more!