UKAVIATOR AND GMAC ERC Rip Off

[ukaviator]

Hello everyone. I have been watching this site with great interest and have made an approach to GMAC RFC to refund an ERC of £5564.02 + £1448.82 interest from 15th January 2003. Here are the details of what has happened so far :

 

9th August 2006 : Letter sent by me asking for the ERC back and explained the reasons why, and asking for a full breakdown of the costs to them in closing my Mortgage early.

 

12th August 2006 :Letter sent to me from Stacey Meyler, complaints manager.

Thank you for your letter of the 9th August 2006,and for bringing your comments to our attention.I am concerned about the issue you have raised and propose to investigate this in line with our Internal Complaints Procedure, a copy of which is enclosed. I anticipate that i will complete my investigations of the events and cicumstances within four weeks, whereupon a shall write again.

yours sincerely, Stacey Meyler.

 

17th August 2006 : Letter received from Louise Shackleton.Further to Stacey Meyler's letter, i thank you for allowing me the time and opportunity to look into your concern's. I understand you are unhappy with the early repayment charge you incurred upon redeeming your accountin Jan 2003, to the value of £5564.02

You state this charge is unfair and request we reimburse you this anount plus interest of £1448.82 totalling £7012.84.

I would refer you to section 12 of the special conditions which formed part of your mortgage offer. This was issued to you and your solicitor prior to completionand stated ;

 

The current mortgage conditions are herby varied with effect and to the extent that if the mortgage loan is repaid, or varied, in whole or part prior to and including the third anniversary of the completion of the loan, the company requires the borrower to pay an Early Redemption Charge regardless of any notice given.The charge will be calculated as a percentage of the balance outstanding immediately prior to repayment or, in the case of part payment,

on the amount repaid. Prior to and including the first anniversary of completion of the loan this charge will be 6%. Between the first and second anniversary of completion of the loan this cahrge will be 5%. Between the second and the third anniversary of completion of the loan this cahrge will be 4%. Thereafter, if the loan is repaid or varied , in whole or part a sum equivalent to one month's interest at the prevailing rate on the capital repaid will be payable. However, this sum will be waived by the company if the borrower gives the company at least one month's prior written notice of the repayment, such notice to expire on a payment day.

 

The terms and conditions of our mortgage offer would normally be fully explained to you by your solicitor and any queries should have been addressed at the time prior to acceptance. This would have ensured that you were fully aware of the implications of accepting our mortgage offer and it's terms and conditions.We have a duty to our investors and other customers to ensure an appropiate level of financial control is maintained, and the early repayment charge incurred was a reflection of the contract being terminated early.

 

A bit more about going to the ombudsman if i am unhappy...etc etc..

 

Here are a few interesting points :

 

I never had a solicitor on this remortgage. They did all of the work with their own people. It was, we will payoff your old mortgage and refinance you.Quite straight forward.

 

They say they have a duty to our investors.

 

1 months notice was given to them prior to repayment.

 

GMAC still have'nt listed the charges as requested. They are hiding the true costs so i think i will go for it, based on their refusal to come clean with the costs.

 

LBA is now about to be sent to them at GMAC.

 

Any comments please. . if i can help others after this i will do so...

[feelingfine]

UK

Hello mate

i would love to know how you get on with this one im after them as well:

 

 

http://www.consumeractiongroup.co.uk/forum/mortgage-companies/17365-reposession-ppi-early-settlement.html#post133972

[gizmo111]

and the early repayment charge incurred was a reflection of the contract being terminated early.

 

So in their own words they are saying this is a penalty! No mention of their costs - what is your next move?

 

I had a mortgage with GMAC which they sold to Mortgage Express so I wil lbe going down this route soon.

[zootscoot]

Stick to your timetable Ukaviator, the fact that you agreed to the ERC makes no difference and as Gizzmo states they have admitted it relates to a breach of contract which invokes the penalty provisions.

 

Get the LBA in the post.

 

Best of luck

 

Zoot

[ukaviator]

Hello Team. I have a financial advisor friend who i will talk to on Monday. I will then see what the likely costs are to take this to court as it is over £7000. May give my union solicitors a call to see if they are willing to take it on. My friend may be able to assist with some more legal stuff. Will keep in touch. I will also be taking on Birmingham Midshires when i get back the information. I will start a new thread on that one soon.

 

Good hunting. . ukaviator

[gizmo111]

Hello Team. I have a financial advisor friend who i will talk to on Monday. I will then see what the likely costs are to take this to court as it is over £7000. May give my union solicitors a call to see if they are willing to take it on. My friend may be able to assist with some more legal stuff. Will keep in touch. I will also be taking on Birmingham Midshires when i get back the information. I will start a new thread on that one soon.

 

Good hunting. . ukaviator

 

Does anyone know if hosuehold insurance legal cover would cover this?

[zootscoot]

Its worth a shot, although I know someone was turned down for it. The banks and insurance comps are in pretty tight allegiance so its unlikely.

[ukaviator]

Hello Team. I will call a few companies tomorrow with regards to a 'NO WIN NO FEE' Solicitor. See what the reaction would be there.

 

Go Get Em. . . . ukaviator..

[Bushman]

UKAviator

 

I am just starting on putting together all the information to start a claim on ERC and noticed you were claiming interest. I had not seen this elsewhere and I was wondering how you were calculating this/

 

Good luck with your claim, I am glad my claim is going to be below the £5K mark.

[ukaviator]

Hi Bushman.. I have so far calculated the 8% under the County Court act 1984.

However if this were a Credit Card, we may be entitled to interest at the contractual rate of say 16.0% to maybe 29.0% depending on who you have cards with. I am sure a judge, if it ever got that far, may agree to that. I do not know if anyone has gone that far in interest claims yet. Hope this helps.

 

Good luck.. ukaviator

[nigel1804]

Hi ukaviator fellow pilot here, Have you heard of anyone claiming missed payment charges back from GMAC there bloody dear as regards mortgages and are charging me £30 missed first payment and then £50 per month for every month that I am behind do you think I could get this back????regards Nigel

[zootscoot]

Hi Bushman,

 

If you have to borrow to pay your redemption fee then you should be able to claim the contractual rate of interest on it because that represents your true loss. You are also entitled tothe statutory 8% when you make your claim.

 

Hi Nigel,

 

You cn claim the late payment fees although be cautious about taking on your current lender. Whilst they can not close your mortgage, you may need them to be sympathetic in the future. Its often worth waiting til you've changed lender before pursuing.

 

Hope this helps

 

Zoot

[nigel1804]

There's no sympathy with these people if I happen to miss two payments they threaten me with ccj's and court.They say there not a bank. but i am going to ckeck my old halifax account for a 12 year period out of that I had my mortgage with them. .I'll take your advice on the GMAC for now.thanks for your help regards Nigel

[ukaviator]

Hello Team. . If during your mortgage period you were charged for late payments these are penalties and claimable. Don't forget to add 8%. If you have trouble with credit card fees then claim the contractual rate of interest at that time. One of my cards was 22.5%. . Compounded interest really does hurt over a period of time. There is an online calculator here for that.

 

Compound interest calculator

 

 

Good hunting ukaviator. .

 

P.S. Nigel where do you fly from?. .

[nigel1804]

I'm in Leeds but I cover the whole of uk so everywhere really,did a lot out in Kenya while I lived out there.I'm all over the place,how about you?

[zootscoot]

If you have to borrow to pay your redemption fee then you should be able to claim the contractual rate of interest on it because that represents your true loss. You are also entitled tothe statutory 8% when you make your claim.

 

 

Sorry this is not correct, having looked into this issue you can not claim if you have borrowed elsewhere only the amount by which the mortgage company that has taken the charges has been unjustly enriched. So whilst you can claim any interest paid for late payment fees you can not claim interest paid to third parties for interest incurred on ERCs. You can claim the statutory 8% when you make your claim

 

Sorry to confuse you.

 

Zoot

[ukaviator]

Hi Team. . . Just read Zoots comments and i agree that you can only claim for the ERC and late payment penalties. You add 8% when the company plays up and you file for court claim. If you had to borrow the money on the other mortgage you can't claim the interest on that. If you did take out a loan and did not add the amount of the ERC to your new mortgage, then you should be able to pay back the loan amount and not incur any more interest. I know it's great to win the money back and maybe go shopping, but remember you are paying interest over a lot of years on the money borrowed to repay the ERC. Get rid of any loan with the win is my advice...

 

Hope this helps. . . UKAVIATOR..

[anomalous]

how did this go?