Mortgage Arrears caused by benefits shortfall

[transformer999]

Re: Reclaiming Mortgage Arrears Charges

Not sure if it's just me but it looks like I have been charged twice for the arrangement fee of £395.00.....bit strange.....

[transformer999]

Re: Reclaiming Mortgage Arrears Charges

My calculations so far....

£50.00 + 6 x £39.00 = £284.00 (arrears fees)

+

£395.00 arrangement fee

+

£15.00 + £15.00 (non payment by DD)

+

£30.00 + £30.00 (unpaid DD fee)

+

£40.00 (insurance fee)


= £809.00 in total

My last letter from Paratus which also came today advises me that I am £871.01 in arrears and I need to fill & return the I & E Form they have sent.

Maybe I should add all these totals up and write dates next to each one and return to them and ask them to deduct what I made from what they made?

[transformer999]

Re: Reclaiming Mortgage Arrears Charges

[LENDER'S NAME]
[LENDER'S REGISTERED OFFICE ADDRESS]

Dear Sir/Madam
Penalty & unfair charges - request for refund for [YOUR NAME, SORT CODE, and LOAN ACCOUNT NUMBER].
[INSERT the amount of charges applied i.e. 'Since 2006 you have applied mortgage 'arrears charges' to my account in the sum of £1,000'. - if you don't know send the 'Data Protection' letter on the Step 1 page].
I believe these charges are a penalty charge and legally unfair in terms of the 1999 Unfair Terms in Consumer Contract Regulations (SI. 1999/2083). I believe this because:

• charges have been imposed on my default, namely because I incurred mortgage arrears;
• default charges at common law must reflect actual costs and the penalties you have imposed far exceed any actual additional administrative costs that my default has incurred; and
• imposing fixed monthly charges because I am in arrears with my mortgage requires me to pay a disproportionately high sum in compensation to you, particulary as during most months I am in arrears you have little or no contact with me; and therefore these charges are legally unenforceable under reference to para 1(e) of schedule 2 to the 1999 Regulations.

Your mortgage default charges are very similar to credit card default charges.
On 5 April 2006 the Office of Fair Trading (OFT) announced that credit card default charges which are set at more than £12 will be presumed to be unfair and unenforceable in terms of the 1999 Regulations. Charges above this sum will be subject to legal action by the OFT (press release 68/06 - online here: http://www.oft.gov.uk/News/Press+rel...2006/68-06.htm).
The OFT stated that a charge is not fair simply because it is below this sum, and I believe that a reasonable charge would be no more than your loss of base rate interest on the sums I have failed to pay. For example, if I was in arrears of £500 for one month your loss would be:
(base rate interest) x (level of arrears) x (length of time in arrears)
5.75% x 500 x 1/12 = £2.39
Please refund all charges applied to my account within the next 7 days. I reserve the right to commence court proceedings without any further notice, and to seek an additional award for distress and inconvenience, together with legal expenses.
Yours faithfully

(signed)

[The Tech Clerk]

Re: Reclaiming Mortgage Arrears Charges

Not sure if it's just me but it looks like I have been charged twice for the arrangement fee of £395.00.....bit strange.....

Reversal of the fee it seems. You will find as I read it on the 24th. sure others will comment as well.

[di30]

Re: Reclaiming Mortgage Arrears Charges

Not sure if it's just me but it looks like I have been charged twice for the arrangement fee of £395.00.....bit strange.....

Hiya

Just had a nose now, and it does seem to be over the places on the charges.
I take it one side it credit and the other debit?

[di30]

Re: Reclaiming Mortgage Arrears Charges

Great letter, would defo get that off and see what charges they will offer, hopefully they will do and send a breakdown at the same time.

Good luck x

[transformer999]

Re: Reclaiming Mortgage Arrears Charges

Hiya

Just had a nose now, and it does seem to be over the places on the charges.
I take it one side it credit and the other debit?

Thanks di30 and gangshield....yes one side is credits the other debits. Will fire off that letter and see what response I get...and thank you for popping in will let you know how I get on.

[transformer999]

Re: Reclaiming Mortgage Arrears Charges

[LENDER'S NAME]
[LENDER'S REGISTERED OFFICE ADDRESS]

Dear Sir/Madam
Penalty & unfair charges - request for refund for [YOUR NAME, SORT CODE, and LOAN ACCOUNT NUMBER].
[INSERT the amount of charges applied i.e. 'Since 2006 you have applied mortgage 'arrears charges' to my account in the sum of £1,000'. - if you don't know send the 'Data Protection' letter on the Step 1 page].
I believe these charges are a penalty charge and legally unfair in terms of the 1999 Unfair Terms in Consumer Contract Regulations (SI. 1999/2083). I believe this because:

• charges have been imposed on my default, namely because I incurred mortgage arrears;
• default charges at common law must reflect actual costs and the penalties you have imposed far exceed any actual additional administrative costs that my default has incurred; and
• imposing fixed monthly charges because I am in arrears with my mortgage requires me to pay a disproportionately high sum in compensation to you, particulary as during most months I am in arrears you have little or no contact with me; and therefore these charges are legally unenforceable under reference to para 1(e) of schedule 2 to the 1999 Regulations.

Your mortgage default charges are very similar to credit card default charges.
On 5 April 2006 the Office of Fair Trading (OFT) announced that credit card default charges which are set at more than £12 will be presumed to be unfair and unenforceable in terms of the 1999 Regulations. Charges above this sum will be subject to legal action by the OFT (press release 68/06 - online here: http://www.oft.gov.uk/News/Press+rel...2006/68-06.htm).
The OFT stated that a charge is not fair simply because it is below this sum, and I believe that a reasonable charge would be no more than your loss of base rate interest on the sums I have failed to pay. For example, if I was in arrears of £500 for one month your loss would be:
(base rate interest) x (level of arrears) x (length of time in arrears)
5.75% x 500 x 1/12 = £2.39
Please refund all charges applied to my account within the next 7 days. I reserve the right to commence court proceedings without any further notice, and to seek an additional award for distress and inconvenience, together with legal expenses.
Yours faithfully

(signed)

I think I will edit that bit in pink and say that I will reserve the right to complain to the FOS.....last thing I need right now is another court case hanging over my head

[transformer999]

Re: Reclaiming Mortgage Arrears Charges

Whoops forgot to update!

I received a letter from Paratus on the 19 September 12...now I wrote my letter of complaint to them and posted it last Sunday...they received it on Tuesday....2 days later and wrote a reply the same day they received it.

This is what they wrote:


Thank you for your letter received on the 18 September 2012.

I am sorry that you are unhappy and would like to know that your complaint is being investigated in accordance with our internal complaints procedure. I have enclosed a leaflet for you which explains how this procedure works.

I will examine your complaint in detail and supply you with an update on our progress within the next four weeks. However, if you feel that you have anything you wish to add to your complaint, or you would like to explain any matter of your complaint further, please do not hesitate to contact me on the number below.

Yours sincerely


David Arfield



Wow another quick response? I am impressed...

[di30]

Re: Reclaiming Mortgage Arrears Charges

Whoops forgot to update!

I received a letter from Paratus on the 19 September 12...now I wrote my letter of complaint to them and posted it last Sunday...they received it on Tuesday....2 days later and wrote a reply the same day they received it.

This is what they wrote:


Thank you for your letter received on the 18 September 2012.

I am sorry that you are unhappy and would like to know that your complaint is being investigated in accordance with our internal complaints procedure. I have enclosed a leaflet for you which explains how this procedure works.

I will examine your complaint in detail and supply you with an update on our progress within the next four weeks. However, if you feel that you have anything you wish to add to your complaint, or you would like to explain any matter of your complaint further, please do not hesitate to contact me on the number below.

Yours sincerely


David Arfield



Wow another quick response? I am impressed...

Fingers crossed and lets hope they resolve it as quick as they have dealt with this when they received the complaint.

Good luck x

[transformer999]

Re: Reclaiming Mortgage Arrears Charges

Thanks Di, I will post up as soon as they respond...although they have given me 4 weeks...judging their quick responses so far maybe that means 4 days instead

[transformer999]

Re: Reclaiming Mortgage Arrears Charges

Hi Di,

I was hoping to pick your brains please. I received another arrears reminder letter from Paratus saying that I am now £970.57 in arrears.

I have been checking my credit file and according to that I am in 2 months arrears. All this is because the DWP pay late my mortgage interest. As you know I have on going compliant going with Paratus about the charges and adding the acceptance fee twice to my account.

I have attached a printout of my credit file so you see this...I am just thinking how the hell I am in £970.57 arrears? It is important and better to nip this in the bud as this amount is rising month by month and god knows what for.

[di30]

Re: Reclaiming Mortgage Arrears Charges

Hi hun

Having probs opening the link at the moment, but I do know what you mean.
What I will do is, if you don't mind is send a message to MGFboy on this one, and I think maybe he will have a better idea on this for you.

[transformer999]

Re: Reclaiming Mortgage Arrears Charges

Thanks di, very much appreciated and hope you will be able to open the link

xx

[mgfboy]

Re: Reclaiming Mortgage Arrears Charges

Just had a quick look at the tread, I would say until the arrears ( no matter how they where created)until cleared will keep on increasing at the same rate.

Do you know why the DWP pay the mortgage late and if so , it may be worth getting a letter from them stating it wasn't your fault as to the late payment. This may help with your claim for unfair charges.

I dont know if the DWP cause hardship though their incompentance if you can claim against them????