Hi Morgy I'm in that boat with you. I've given them 2 chances to explain the ERC - 1st reply told me it was 6% of the outstanding amount, the 2nd told me it was a genuine pre-estimate of thier costs. Neither letter showed me any firm calculations that they used in coming to thier 6% figure. Now do I give 'em 1 more chance or risk it & register a claim? I'm hoping someone on here will help. Keep us informed of how you get on - you're not on your own x

Hi All Can someone please advise me what I should do next? I wrote a letter to Kensington requesting info on how they calulated my ERC, I also included the standard paragraph about it being a penalty etc. They responded that it was calculated as 6% of the amount outstanding at redemption! I knew this already. So I sent another letter saying I wanted actual figures of how this relates as a loss to them. The responce was that it was a genuine pre esimate of thier loss at the time of me taking out the mortgage & that I agreed to this when I signed the mortgage agreement. I took out a 2 years fixed with them but ERC would apply if I redeamed the mortgage within the first 3 years. I moved to another company after 12 months as it was cheaper to pay the redemption figure & move. My problem is now................... do I assume they can't provide me with their calculations & therefore assume the charge was a penalty and register a claim? I'm after £5,600 from them so it will cost me £250 to register and I can't really afford to lose that kind of money should they say no & want to fight it in court and I certianly don't have the knowledge to fight it should it get that far. Can somebody please help & let me know if it's worth persuing? Many many thanks in anticipation x

Hi Dianne I recently got late payment charges back from Ford Credit, so I know it can be done. Go for it and get back what they took from you illegally. Good luck - let us know how you get on.

Thanks very much - I'll send them a letter giving them 14 days to refund now.

Hi I've recently been refunded £1,355.49 by the Halifax & due to my success thought I'd have a look at some other charges. Now here's the question - I had 4 late payment charges of £25 from Ford Credit in 2004. I wrote them the standard letter but have rec'd one back saying that the OFT ruling doesn't apply to them, inly Credit Card companies. Just before I write back I want to check this ......................... surely they still need to prove that the charge is a liqidated loss in order for it not to be a penalty charge? Therefore even though they are not a credit card company they must still work within the law and not charge unlawful penalties for late payment? Please tell me I'm right on this one? What do people think?

I seem to remember I have seen something that says if your claim is over £5k it goes through a different process. The over £5k process means that you have to pay the defendants court costs as well as your own if you lose - it might be worth checking before you proceed as this hasn't been tested yet and people aren't 100% confident these charges are unlawful.

I emailed Cahoot yesterday for copy statements & had an email at 16.15 yesterday saying 'I have sent you a letter which includes all the charges applied to your 3 accounts over the last 6 years'. So fingers crossed they have actually done that & I should have an idea if they owe me anything by the end of the week

Hi Surreyscouse Any update on this yet? I 'm trying the same route with Kensington Mortgages who've just charged me £5,600.

Hi there I have just paid Kensington Mortgages £5,600 ERC - I think I'll be sending them the letter earlier in this thread to see if they can show just how this charge is calculated. Surely if that isn't the amount of their liquidated losses then the ERC is also a penalty??? Or am I just making this too simple. I don't have any legal training so to me it really does seem that simple? Has anyone had any joy with this yet?

Sounds very similar doesn't it? I know the figure they charged me, as I only changed mortgages last month, so everythjings fairly fresh. Bit worried about doing it but I think I'll run it past a few people & see what they think. I've no legal training either, I'm in the process of re-claiming cgs back from the Halifax but other than that I have no idea. I'll let you know what I decide.

Hi Emma Just noticed your thread. I myself was in a similar position and had to take out an interest only mortgage at 8.65% with huge redemption fees, so I completely understand your predicament & do not judge I took another mortgage out after 12 months with the rip off mortgage & paid a redemption fee of £5,600. I know this felt excessive at the time & it really did leave a bitter taste in my mouth but paid it because long term it was more beneficial to pay the money and run. However after looking at this website I considered sending this (see below) This letter asks them to supply me with evidence of their liqidated losses or pay up - I'm not too sure whether to chance it or not yet as I don't want to end up in court with a 'well I thought I'd give it a go' kind of case but then again I'm not sure I have anything to lose. I'll let you know what I decide - but you're no the only one to be in this position. Hope this helps a little. LETTER "I recently repaid the above mortgage with yourselves with a redemption figure of £****. I was contracted to stay in the mortgage for three years, two of which were at a discounted rate. I had to cancel the mortgage after a year and subsequently had to pay the early redemption charges mentioned above. I now believe that this charge was disproportionately high. As I am sure you are aware in Common Law you can only recover liquidated losses stemming from a breach of contract - that is, money which it has actually cost you to end the contract early. Therefore this charge is contrary to the Unfair Terms in Consumer Regulations 1999. In addition I believe that this charge was a Penalty. Again, as I am sure you are aware penalty charges are irrecoverable at Common Law. The precedent for this was Dunlop Pneumatic Tyre Co Ltd v New Garage and Motor co Ltd [1915] AC 79. along with Murray v. Leisure play [2005] EWCA Civ 963. It was held that a contractual party can only recover damages for an actual loss or liquidated losses. It is clear that this charge does not reflect any actual and or real loss. To this end I require you to refund the total of this charge (£****) or provide me with the evidence and calculations that the total of this charge does actually cover your liquidated losses. If this is not done within 14 days, I will be forced to take further action and legal advice."

Hi I too had a mortgage with Kensington & repaid it a few months ago. The mortage was a 2 year discounted but I was tied in for 3 years!! I only had the mortgage a year and had to pay a redemption fee of £5,600!? I was thinking of sending them this ................ "I recently repaid the above mortgage with yourselves with a redemption figure of £****. I was contracted to stay in the mortgage for three years, two of which were at a discounted rate. I had to cancel the mortgage after a year and subsequently had to pay the early redemption charges mentioned above. I now believe that this charge was disproportionately high. As I am sure you are aware in Common Law you can only recover liquidated losses stemming from a breach of contract - that is, money which it has actually cost you to end the contract early. Therefore this charge is contrary to the Unfair Terms in Consumer Regulations 1999. In addition I believe that this charge was a Penalty. Again, as I am sure you are aware penalty charges are irrecoverable at Common Law. The precedent for this was Dunlop Pneumatic Tyre Co Ltd v New Garage and Motor co Ltd [1915] AC 79. along with Murray v. Leisure play [2005] EWCA Civ 963. It was held that a contractual party can only recover damages for an actual loss or liquidated losses. It is clear that this charge does not reflect any actual and or real loss. To this end I require you to refund the total of this charge (£****) or provide me with the evidence and calculations that the total of this charge does actually cover your liquidated losses. If this is not done within 14 days, I will be forced to take further action and legal advice." what do people think? Should I give it a go? I have my mortgage elsewhere now so they can't really affect me that way. But don't want to push for it & end up in court if I can't really prove my case.

Hi I didn't want to hijack anyone elses thread so thought I'd start a new one. After splitting with my ex I was forced to take out a 'last resort' mortgage with Kensington Mortgages to allow me to pay debts off, buy ex out of property & allow me & my daughter to remain in the same house. I was paying an interest only loan at 8.65%, yes 8.65%. However, a year down the line I've sorted myself out financilly and had a pay rise so I have now changed to a much better mortgage with GMAC (know their not great either but it's better than the other one). Anyway to get out of the Kensington mortgage I had to pay £5,600, I knew this before I started the re-mortgage & it was still cheaper to move! My question is was this £5,600 unlawful? It would be fantastic if I could recoup some of this money as I'm a single mum & every penny really does help. Any help or advice would be REALLY REALLY apreciated - I'm happy to supply more info if need be. Many thanks for reading.