Early Repayment Charge Refund

[majik]

Hi,

Im hoping someone with some legal knowledge can help, I am wanting to reclaim my ERC from Northern Rock (around £3500).

I believe that the charge is incorrect as it is meant to relate to the money they will lose due to lost interest etc i think.

My claim/angle is that they have not lost anything infact they have probably incured less charges themselves by me paying off my mortgage early.

I sold my property on 8/2/2008 and have never been sent a final statement/breakdown which i am currently waiting for but i can remember them informing me over the phone that as i still had 3.5 years to go on my 5 year fixed mortgage i would incur a ERC of around £3500.

 

I know that some of these claims are being paid back but some are not so any advice would be great, i have read the other threads about this but none seem to relate to what im claiming etc.

[TaxedAndConfused]

I was reading the article below

 

Are Mortgage Redemption Charges Unlawful? - 04/05/2007

 

about this a while ago as we are just about to jump off the end of our fixed rate deal with a £6K penalty. It suggests that claims under £5k are usually settled out of court - so its probably worth a go.

[zootscoot]

There is a high court precedent against such claims.

 

See also:

 

http://www.consumeractiongroup.co.uk/forum/mortgage-companies/62003-important-mortgage-claimants-please.html

[majik]

Firstly it was quite a while ago both articles were written so i take it there is no newer advice etc, if there is no clause making us liable for the costs then surely its worth a go ?

[majik]

I have written NR a letter basically asking for several different refunds as they have charged me for arrears when there weren't any,Debt councelling when i was offered none or needed none etc so i will keep you posted on any outcomes.

 

I have also gone along the "Treating Customers Fairly Act" which i believe they have breached several times by refusing to give me infomation as my ex husband who was jointly named on the mortgage asked them not to but they then gave out my address details and contact number to him !!!!!!

They also informed me several times over the phone that the only way i could avoid court was to pay the shortfall owed (about £6k from secured loan although the ERC and other fees incorrectly charged is around £4k) in full by myself or they would through the book at me.never gave me anything in writting etc.

I offered them £3100 to remove my liability which they accepted although they still send me letters addressed to me and my ex husband (been divorced about 8 months now) to my house (he never lived here ever) asking for full payment etc.

Edited May 30, 2008 by majik