BobbyH v Future Mortgages

[bobbyh99]

Desparate Bump!

[Bigmark]

Hi Bobby

 

I wish I could offer some sound advise, unfortunately my complaint regarding F/M Ref;charged SIX months interest instead of THREE is still being considered by the FOS.

 

Have you considered taking your complaint to the FOS, they will advise you if it is something they are able to look into. I must admit i have found them to be most helpful when dealing with my complaints regarding the following

 

GMAC = Arrears and non payment by D/D

Woolwich/Barclays = Early Repayment Charge

Citi = Credit Card charges

Monument = Credit Card charges

Monument = PPI

Barclaycard = charges

 

Unfortunately I was informed 2nd charge Mortgages/Sercured Loans above £25.000 will not be regulated or approperiately protected so i can not advise on the Rule of 78, Under £25.000, yes i believe that they should have used the Rule of 78 to calculate your early settlement

 

 

Good Luck

[bobbyh99]

Thanks for the reply Bigmark.

Unfortunately, I am at a loss as what to do.

Like I said I have all 3 agreements and T&C's and it doesn't mention anywhere that there was an early redemption charge let alone 6 months interest, I believe the "industry standard" was the Rule of 78.

 

Perhaps I will ask the FOS.

 

Thanks again

BobbyH

[Bigmark]

Hi Bobby

I can understand your frustrations with F/M; they are a law unto themselves, however they certainly will not relish an investigation by the FOS.

Future Mortgages are part of Citigroup, same address, same telephone number and, not surprisingly same rubbish and excuses as Citi Credit Card, hopefully F/M will fold the same way as Citi did when the FOS looked into my Credit Card complaint.

This is the response from the FOS regarding my Credit Card complaint.

As you know, we wrote to CitiFinancial to pursue your complaint about credit card charges. I asked CitiFinacial to give me information that would be relevant to a formal investigation by the Ombudsman into this complaint.

I have now heard from CitiFinacial. It says it does not accept that its charges are unlawful or unfair. But following my intervention it has told me that it would prefer to settle your complaint as an alternative to our formal investigation. It accepts no liability, but nonetheless says it will pay you £1,150 plus interest of £ 92, 00 to settle the dispute. CitiFinacial tells us that its offer represents a refund of all the charges and interest that you dispute in your complaint and meets your claim. I assume you will find this offer acceptable.

Acceptance of the settlement CitiFinacial has offered in respect of this complaint this will not prevent you from bringing a new complaint, should further disputed charges arise in the future.

The point is Bobby I can not imagine F/M sending information/terms and conditions that are different from the original terms you hold. I really do believe the FOS will rule in your favour.

I will certainly keep you posted with any updates I receive from the FOS about my complaint.

Good luck

[bobbyh99]

Hi Bigmark

 

It looks like I will go down the FOS route, but will wait until/if FM reply to my last letter. Although going by previous letters I have wrote they either don't reply or take weeks and weeks to.

 

I'll give it a week or 2 and then get the FOS complaint going.

 

Thanks for your advice.

 

BobbyH

[bobbyh99]

I received a letter from FM yesterday saying that their 6 month interest ERC applied to 1 of my loans was incorrect. They should have used the Rule of 78 instead. The difference between the 2 is approx. £2000 with 8% interest and the cheque should be with me in 7-10 days:shock:

 

I can't believe this, I am totally shocked. Nice timing what with Xmas around the corner!

 

It is about £700 less than my caclulation but a step in the right direction.

Now for the other 2 loans which they say "are correct for the type of account you held".

 

Bobbyh

[bobbyh99]

A quick update - I have written FM another letter thanking them for the £2000 as part payment and basically asking for the rest. They say that the other 2 loans are different to the one which they have refunded part of the ERC. I have looked at them with a fine tooth comb and they look pretty identical (except the amounts etc). Now that we have a bit of dialogue I am quite hopeful for this, bearing in mind they have written and told me their ERC was incorrect!!!

 

BobbyH

[davo19]

Hi, After some advice im just in the process of changing mortgages and getting rid of a secured loan to Future Mortgages or at least that was the plan until i got the redemption figure from Future Mortgages.

 

I took out a £20,000 Secure Loan in 2000 and have been told today that a settlement figure is £28482.08 , Im in shock can this be correct ?

[groovycaz]

Hi, they did the same to me whith a loan which I took out in 2001, they will have used the rule of 78 when calculating the redemption figure, so basicly you are paying most of the interest on the loan even though you are paying it off early. this method of calculating early settlementof account has been ruled unfair by the FSA but only for CCA taken out since 2005 i believe, I would however request a complete breakdown of how they came to the total figure as they are well known for miss-calculation, usually to their advantage, dont know whether they've ever used the new ruling for loans taken out pre 2005, sorry I only know this as same thing hapened to me although not as much as yours..Gc

 

Ps,maybe you should start your own thread in the secured loans/ early redemption fees, where there will be other's more in the know who could help you..Gc

[davo19]

Thanks Gc , ive moved my post to the Secured Loans Forum

[bobbyh99]

Unfortunately I haven't had any response from Future Mortgages (Citigroup) from my last letter.

 

I will send an LBA and give them another 14 days but what I would like assistance with is a POC.

 

The Story

 

3 secured loans with future mortgages.

All 3 regulated by CCA.

All 3 redeemed early.

6 month interest penalty paid on all 3 for redeeming early.

FM have admitted that 1 loan was "a regulated" one and so Rule of 78 should have been used. They refunded me £2k, however this amount was about £800 short of what they should have refunded me!

 

The other 2 were also regulated but FM say that the 6 month charge "is correct for that type of account".

 

What I want

 

A POC to reclaim the difference between the 6 month interest and The Rule of 78.

 

The reasons for this are as said before FM have admitted they should have used the R78 for one, but I believe it should have been used for all 3. Well actually should they have used anything at all??

 

Evidence

 

The only things I have to go on are:

 

The 3 credit agreements do not mention any early redemption charges.

FM have admitted that 6 months interest charge was incorrect (for 1 loan).

 

Any assistance with writing a POC would be very helpful?

Thanks

 

BobbyH

[bobbyh99]

How about this for a POC (draft)?

 

Particulars Of Claim

 

1. The Claimant had three secured loan accounts, (“the Accounts”). All three loan account were Regulated by the Consumer Credit Act 1974.

• Account number 123456789. The account was opened on or around dd mmm yyyy.
  
• Account number 123456789. The account was opened on or around dd mmm yyyy.
  
• Account number 123456789. The account was opened on or around dd mmm yyyy.
  

2. The Accounts were redeemed by the Claimant:

· Account number 123456789 was redeemed for £00,000.00 on dd mmm yyyy.

· Account number 123456789 was redeemed for £00,000.00 on dd mmm yyyy.

· Account number 123456789 was redeemed for £0,000.00 on dd mmm yyyy.

 

3. The redemption figures referred to in section 2 above and paid by the Claimant included a six month interest charge.

4. The Defendant has admitted that the six month interest charge for Account number 123456789 was incorrect.

5. The Claimant avers that the six month interest charge for Account numbers 123456789 and 123456789 are also incorrect.

6. The Claimant provided the Defendant with redemption figures for the Accounts, calculated by the Claimant. These are calculated using “The Rule of 78”. See Appendix 1,2 and 3 attached.

7. The Claimant provided the Defendant with further redemption calculations, using Internet calculators. These are calculated using the “Rule of 78”. See Appendix 3,4 and 5 attached.

8. The “Rule of 78” is a mathematical formula which is set out in the rules governing repaying loans early (the Consumer Credit (Early Settlement) Regulations 1983).

9. These early settlement rules covers fixed-sum loans (where you are given a single amount of credit or where you are given credit to make one purchase on a particular occasion) taken out before 31 May 2005 and repaid by a single payment before:

31 May 2007, for loans up to 10 years; or

31 May 2010, for loans of 10 years or longer.

10. The Defendant has part settled the claim in the amount of £0,000.00 in respect of Account number 123456789. This amount included Section 69 Interest at 8%.

 

11. Accordingly, the Claimant claims:

 

a) The remaining amount of refund in the amount of £0,000.00.

 

b) All applicable Court fees

 

c) Interest under section 69 of the County Courts Act 1984 at a daily rate of 8% from dd mmm yyyy until dd mmm yyyy of £000.00.

d) Interest under section 69 of the County Courts Act 1984 at a daily rate of 8% from dd mmm yyyy of £0.00 up to the date of judgment or earlier payment.

 

12. Save payments into and/or determined by the Court, any sums paid in settlement of this claim are required to be made by cheque, which should be made payable to the Claimant.

 

Statement of Truth

The Claimant believes that the contents of these particulars of claim are true

 

 

Also, do anyone have a link or a copy of the Consumer Credit (Early Settlement) Regulations 1983?

 

Thanks

BobbyH

[bobbyh99]

Bump

[bobbyh99]

Some good news. I have received confirmation that FM are going to pay me £3.7k refund in early repayment charges (this includes 8% interest).

 

BobbyH

[Ell-enn]

Brilliant Bobby! well done for standing your ground - enjoy the money when it comes

[groovycaz]

Fantastic news bobby, well done and good for you seeing this through..:D

 

me thinks its time to get my act together..Gc