My Friend Vs Abbey

[tezviper]

Hi all. I am dealing with my friends claim against Abbey and we have filed just over a month ago with MCOL.

Anyways recieved offer today of 65% of total claim ( £1700 ) along with their defense. The interesting thing is how they have outlined their defense.

Point 8 is as follows.

 

The claimant's contention that the said fees are unenforceable and/or are " penalty charges " is denied. The fees reflect and are proportionate to the defendants administrative expenses incurred due to the claimants breach of contract and are a genuine pre-estimate of the damage suffered by the defendant.

 

his is the first time I have known a bank to admit that the charges are penalty charges for breach of contract!!!!!!

 

Anyone have any views on this????

 

TezViper

[tezviper]

Bump

[jules1973]

This is what abbey have been putting in their defence for over a year. As such the fees charged are illegal under common law. Maybe they should of shot the person who drafted them up as I dont know of any other bank who readily admits that it is a breach of contract.

[tezviper]

My thoughts exactly. i mean if they are saying its a penalty charge then surely in court a judge would have to ask for a breakdown of this cost!!!!

Have dealt with all the banks so far in this and its the first time I have known them to make this admission.

At least the OFT is getting involved now and hopefully will mean people wont have to go through the courts soon.

 

TezViper