Zoot v Halifax Mortgages ***SETTLED IN FULL*** *

[zootscoot]

I'm on the trail of Igroup now - what happened to you? The ***** tried to repossess my £300k house for being £600 in arrears. By the time I got tp court, it was over £1200 inc the charges.

 

 

Go get em ... revenge is sweet!

 

Hope you don't mind if I borrow your letters for it zootscoot.

 

Help yourself ...another mortgage company getting hit makes me happy!

 

Does the repossession affect a claim in any way, do you think?

 

No, although if there is any balance outstanding they might try to apply any pay out to it.

 

think IGroup might just go all the way because the ERC, or whatever it's called on a secured loan, was quite large.

 

That secured loan wasn't under 25,000 by any chance?

 

Best of luck to you all

 

Zoot

[Beserker]

Ah, I knew there was something about loans secured on your home under 25k and the Consumer Credit Act but I can't remember it..

[Nightmare4banks]

Hi all!

 

Well done,Zoot! Also,good luck to all who are claiming.

 

I am very pleased that we can claim these penalties back because they are excessive and totally unjustified.

 

Personally,I have issued LBA's to both Birmingham Midshires and Nationwide both standard fob you off letters etc.Claims will follow soon!I will let everyone know the outcome.

 

Beserker,I have mentioned this in a previous thread regarding this type of loan i.e. below £25,000 which is a regulated loan under The Consumer Credit Act 1974.

 

The main features of this type of loan are as follows(There are a few more points in this post than the previous one):

 

1.This type of loan has a cooling off period of a total of 16 days I think.This is 14 days for the consumer to inspect the agreement and two days for first class post from the finance company and back from the consumer.

2.The finance company is TOTALLY FORBIDDEN from contacting the consumer during the cooling off period in any shape or form.

3.However,there is no restriction on the consumer contacting the finance company during the cooling off period mainly so he/she/they can clarify any points regarding the loan.At one stage,if the consumer urgently needed the money he/she/they could have gone to the nearest office associated to the finance company and before the cooling off period lapsed to collect the cheque for the loan amount.

However,this practice seems to have fizzled out now - mainly probably due to the current tighter regulations in place.

5.These strict rules/laws were introduced to stop aggressive sales tactics in making people sign on the dotted line without having the adequate time to inspect the agreement carefully and properly.

 

HOWEVER....

 

Any secured loan above the £25,000 threshold is non-regulated and thus governed by mortgage rules/laws etc and not The Consumer Credit Act 1974.

 

I hope you find this information useful.

[gizmo111]

Hi all!

 

Well done,Zoot! Also,good luck to all who are claiming.

 

I am very pleased that we can claim these penalties back because they are excessive and totally unjustified.

 

Personally,I have issued LBA's to both Birmingham Midshires and Nationwide both standard fob you off letters etc.Claims will follow soon!I will let everyone know the outcome.

 

Beserker,I have mentioned this in a previous thread regarding this type of loan i.e. below £25,000 which is a regulated loan under The Consumer Credit Act 1974.

 

The main features of this type of loan are as follows(There are a few more points in this post than the previous one):

 

1.This type of loan has a cooling off period of a total of 16 days I think.This is 14 days for the consumer to inspect the agreement and two days for first class post from the finance company and back from the consumer.

2.The finance company is TOTALLY FORBIDDEN from contacting the consumer during the cooling off period in any shape or form.

3.However,there is no restriction on the consumer contacting the finance company during the cooling off period mainly so he/she/they can clarify any points regarding the loan.At one stage,if the consumer urgently needed the money he/she/they could have gone to the nearest office associated to the finance company and before the cooling off period lapsed to collect the cheque for the loan amount.

However,this practice seems to have fizzled out now - mainly probably due to the current tighter regulations in place.

5.These strict rules/laws were introduced to stop aggressive sales tactics in making people sign on the dotted line without having the adequate time to inspect the agreement carefully and properly.

 

HOWEVER....

 

Any secured loan above the £25,000 threshold is non-regulated and thus governed by mortgage rules/laws etc and not The Consumer Credit Act 1974.

 

I hope you find this information useful.

 

Do the ERC's count as penalties on a secured loan under £25,000 - I had one and the repayment was approx 1200 on a 12500 loan - waiting for SAR back

[Beserker]

Stolen my question

[zootscoot]

If your secured loan is governed by CCA 1974 (not all will be check out s.16 for exempt agreements) then s.95 (1) entitles you to a rebate of charges to credit.

 

http://www.passprotect.studio400.me.uk/Consumer_Credit_Act_1974.PDF

 

The Consumer Credit (settlement Information) Regulations 1983 requires the creditor to give a statement of amount required to pay off the loan and how this was calculated. The Consumer Credit (Early Settlement) Regulations 2004 (see link below) regulates the calculations and these cannot be contracted out of to the detriment of the consumer (s.173(1) CCA). So I would imagine an ERC which requires payment over that provided for in the Regs would be classed contracting out of the Regulations to the detriment of the consumer.

 

The Consumer Credit (Early Settlement) Regulations 2004

 

These Regulations only apply to loan agreements taken out since 31st May 2005. These Regulations replace Consumer Credit (Rebate on Early Settlement) Regulations 1983 which contained similar provisions. I can't find these anywhere at the moment. Trading Standards have software which can check the calculations provided by a loan company. Its often referred to as rule 78 and allows them to charge upto 6 months interest.

 

 

Hope this helps

 

Zoot

[chelsea]

Zoot, well done for winning and the letter are great.

I've already sent my prelim letter and they have rejected it, but realised I sent a different prelim and LBA! I got mine from the library of templates!

 

Is it worth sending another one, or do I just start my claim as they have only just replied to my prelim letter and the LBA expired on the 16th.

 

I am a bit concerned that I may have worded the letter more towards bank charges and not ERC. Will this make a difference when issuing the claim?

If so, I think maybe I should sent the correctly worded letter, give them another 14 days? Please advise.

 

Thanks

Chelsea

[zootscoot]

Hi Chelsea,

 

If so, I think maybe I should sent the correctly worded letter, give them another 14 days?

 

Yes I think that would be best.

 

Good luck

 

Zoot

[martin2006]

Hi zoot,

Finally getting round to issuing MCOL. One question though.

Can you do an MCOL for erc if its a joint mortgage or do you just do it on your own. As the mortage was joint do the claimants need to be joint?

Not sure if MCOL lets you do that.

[Paul65]

well we seem to be concetrating only on the ERC remember they have charged you arrears and defaults as well. go get em..

[zootscoot]

I did the claim in my name alone as this is all that is allowed under mcol, but all the letters (prelim and LBA) were signed by myself and my husband and the cheque was made out to us both. No one ever queried it.

 

Hope this helps

 

Zoot

[zootscoot]

Ok just for completeness and so that everything is available in one thread, here is the LBA I used in my action:

Hope this helps

Zoot

LETTER BEFORE ACTION

 

Dear XXXXX,

 

ACCOUNT NUMBER: XXXXXX

 

 

 

We are very disappointed that you have failed to respond to our letter of the XXXXX relating to the repayment of the redemption fee of XXXX. Since paying the fee we now understand that such fees are unlawful and unenforceable as outlined in our previous letter. We would draw your attention to the terms of the contract which you agreed to at the time that we opened our account. It is an implied term of that contract that you would conduct yourselves lawfully and in a manner which complies with UK law.

 

We are frankly shocked that you have operated our account in this way as we had always reposed confidence in your integrity and expertise as our fiduciary. We require repayment in full of this money. If you do not comply fully within 14 days then we shall initiate court proceedings against you for the full amount, plus interest, plus costs and without further notice.

 

 

 

Yours faithfully,

XXXX

 

[gizmo111]

Ok just for completeness and so that everything is available in one thread, here is the LBA I used in my action:

 

Hope this helps

 

Zoot

 

 

LETTER BEFORE ACTION

 

Dear XXXXX,

 

ACCOUNT NUMBER: XXXXXX

 

 

 

We are very disappointed that you have failed to respond to our letter of the XXXXX relating to the repayment of the redemption fee of XXXX. Since paying the fee we now understand that such fees are unlawful and unenforceable as outlined in our previous letter. We would draw your attention to the terms of the contract which you agreed to at the time that we opened our account. It is an implied term of that contract that you would conduct yourselves lawfully and in a manner which complies with UK law.

 

We are frankly shocked that you have operated our account in this way as we had always reposed confidence in your integrity and expertise as our fiduciary. We require repayment in full of this money. If you do not comply fully within 14 days then we shall initiate court proceedings against you for the full amount, plus interest, plus costs and without further notice.

 

 

 

Yours faithfully,

XXXX

 

 

Hi zoot,

 

I see you are now a site helper - excellent news.

[krusty]

This is a stunning thread

As someone that has changed mortgages quiet offen, i have paid a few of these companies ERC's

 

This is going to take some digging around in my files..

 

Can you see any benifit on Adding the relivant Legal sections of your LAA

to the LBA, therefore making it clear before Action, that you are aware of your rights?

 

Already found that Nationwide charged me £2k plus, as an Early Redemption Charge, this year

 

I have contacted my mortgage advisor and he is looking into this today

 

Once Helifax have paid i will pursue Nationwide in the same fashion as yourself.

 

The Millions they must be making from us is shocking

[martin's little pupil]

Quoted from krusty.

(I have contacted my mortgage advisor and he is looking into this today)

 

 

Hiya,

Am pretty new to all this,and i have now put in three of my S.A.R - (Subject Access Request)'s for the bank charges, and now want to make a start on my past mortgage accounts and have just contacted my mortgage advisor for advice and have found that im up agaist a very touchy subject on this with him, (throwing his toy's out of the pram on this matter) saying, it all comes back on him cos it looks like he has given me bad advice. (wot he is really saying, is), (i'v been paid a massive chunk of that penalty charge and this will have a knock-on affect and i will have to pay mine back aswell) can you let me know if you have had this reaction from your financial advisor or anyone else for that matter???

Thankyou!!!

MPL...

[martinpar]

(i'v been paid a massive chunk of that penalty charge and this will have a knock-on affect and i will have to pay mine back aswell) can you let me know if you have had this reaction from your financial advisor or anyone else for that matter???

 

I don't see how he could be affected. His payment is in return for arranging the mortgage and although I could see that there might be an ongoing payment while you keep the mortgage, which I very much doubt, I can't see there being any clause in his contract with the lender which says he has to pay them if they have to repay an unfair charge back to you. On completion of the mortgage and their payment the contract is ended.

 

IMHO of course.

[zootscoot]

No it shouldn't affect the mortgage adviser. However, I've seen several letters where the mortgage co. have argued this was in the T&Cs which your mortgage adviser should have explained to you. It matters not that the mortgage adviser has explained as even if you know about it and agree to it if it is a penalty it is unlawful.

 

The mortgage companies are obviously taking their anger out elsewhere!

 

So if the mortgage advisers were to give correct advice their clients such as

 

'this mortgage product comes with an ERC but don't worry this is unlawful and you can claim it back once you've paid it'

 

Perhaps the mortgage companies would be happy!

 

I think not lol

 

Zoot

[njtkc]

excellent letter been searching for something like this just what I need to send to the exective for west brom whose trying to riggle out of paying. got my own thread so will update it. thanks Zoot.

[krusty]

Quoted from krusty.

(I have contacted my mortgage advisor and he is looking into this today)

 

 

Hiya,

Am pretty new to all this,and i have now put in three of my S.A.R - (Subject Access Request)'s for the bank charges, and now want to make a start on my past mortgage accounts and have just contacted my mortgage advisor for advice and have found that im up agaist a very touchy subject on this with him, (throwing his toy's out of the pram on this matter) saying, it all comes back on him cos it looks like he has given me bad advice. (wot he is really saying, is), (i'v been paid a massive chunk of that penalty charge and this will have a knock-on affect and i will have to pay mine back aswell) can you let me know if you have had this reaction from your financial advisor or anyone else for that matter???

Thankyou!!!

MPL...

 

 

Is your Mortgage advisor independant or is he linked to the company you borrowed from. i can see how a linked advisor would get the hump

[martin's little pupil]

Hi Zoot,

No he's not linked in any way as far as im aware, he was an independent financial advisor that we sought out to help re-arange our finances last year.

Zoot, there are many questions i need to ask you later when i have been and found my details for one of my mortgages if you would'nt mind helping me please???

There are so many things im unsure of, im also still trying to find my way around this site but it would be a great help if i knew what i was doing on the pc but thats all new to me too, it's all so damm frustrating. Sorry!!

BY THE WAY, I THOUGHT YOUR LETTER WAS OUT OF THIS WORLD. (FANTASTIC) GOLD STAR AWARD. WELL DONE LUV...

Thanks...

MLP...

 

ps, are you familiar with a set aside mortgage with mortgage express?? it's just that not many people have heard of it and thats what i would like some advice on if you don't mind? thanks again...

[paddym]

Martin the best way to get used to our site and find you way round is really to just keep reading and of course a must to do is to read the FAQs that way you will soon get the hang of it any problems dont be afraid to ask we are all here for each other !

[martin's little pupil]

Thanks, Paddy darling, your a little gem.

I have read that much in the last few weeks (more than i ever did in my entire school day's) still a little confused, but i'll get there in the end. If only i could be a little quicker at working this damm computer out, it would help.

Thanks again for all your suport..

MLP...

[paddym]

just take your time theres no rush here sometimes your better just exploring all the different sections it will all become familiar to you eventually so remember no rush any probs there are always friends here in similar positions or a little further on who will give you advice and guidence remember we are all in this together united in the knowledge we can help one and other against the big financial institutions !

[krusty]

I Have just informed my Mortgage advisor of my planned course of action

regarding the Nationwide

 

He is now looking at claiming against the Abbey National for a large ERC that his now wife had to pay

[paddym]

well done Krusty the more the merrier !