Sothern Pacific Mortgages - SETTLING IN FULL

[Seminole]

Quick summary:

 

Wrote to them on 11 Feb using standard form of letter demanding penalty arrears fees back plus interest within 7 days. Followed up with a letter on 13 Feb including schedule of charges (from a statement they provided just before redemtpion of the mortgage) totalling £1,245 plus interest. I said that I reserved the right to also pursue them over some aspects of their early redemption penalty but needed more information from them to decide how it was calculated.

 

Letter recived today acknowledging my complaint and saying that they will investigate. They are allowed 8 weeks to do this by the FSA but will rush mine through in 4. They enclosed a Financial Ombudsman leaflet.

 

My view is that I'm no longer a customer of theirs and they robbed me blind when I was. Having given them notice of legal proceedings if they don't provide a refund, I'm inclined to ignore their delaying tactics and proceed to issue a county court claim. It will take more than 4 weeks to get a hearing date anyway and so they would have a chance to "consider" my complaint.

 

I suppose my only concern is whether the court might consider this unreasonable haste if it ever reaches a hearing.

[Seminole]

Quick summary:

 

Wrote to them on 11 Feb using standard form of letter demanding penalty arrears fees back plus interest within 7 days. Followed up with a letter on 13 Feb including schedule of charges (from a statement they provided just before redemtpion of the mortgage) totalling £1,245 plus interest. I said that I reserved the right to also pursue them over some aspects of their early redemption penalty but needed more information from them to decide how it was calculated.

 

Letter recived today acknowledging my complaint and saying that they will investigate. They are allowed 8 weeks to do this by the FSA but will rush mine through in 4. They enclosed a Financial Ombudsman leaflet.

 

My view is that I'm no longer a customer of theirs and they robbed me blind when I was. Having given them notice of legal proceedings if they don't provide a refund, I'm inclined to ignore their delaying tactics and proceed to issue a county court claim. It will take more than 4 weeks to get a hearing date anyway and so they would have a chance to "consider" my complaint.

 

I suppose my only concern is whether the court might consider this unreasonable haste if it ever reaches a hearing.

[BankFodder]

The 8 weeks is their affair.

Tell them that it is not acceptable and that that they have clearly ignored FSA and OFT advice about penalties you don't understad why they suddenl,y want to become so wedded to FSA standards now.

Lay down a target date and then follow it.

Take control. Set the agenda, Set the pace.

[BankFodder]

The 8 weeks is their affair.

Tell them that it is not acceptable and that that they have clearly ignored FSA and OFT advice about penalties you don't understad why they suddenl,y want to become so wedded to FSA standards now.

Lay down a target date and then follow it.

Take control. Set the agenda, Set the pace.

[Seminole]

Thanks for that. This company is very aggressive and happy to slap on outrageous fees. I'll send off the claim forms this week.

[Seminole]

Thanks for that. This company is very aggressive and happy to slap on outrageous fees. I'll send off the claim forms this week.

[Seminole]

Nicky Harris

Southern Pacific Mortgages Limited

1 Broadgate

London

EC2M 2SP

 

 

By fax

 

 

WITHOUT PREJUDICE

 

Dear Ms Harris

 

MORTGAGE ACCOUNT NUMBER: XXXXXXXXXX

FINAL LETTER BEFORE ACTION

 

Thank you for your letter dated 20 February.

 

I note that you propose to deal with this matter by using your company’s complaints procedure in accordance with FSA guidelines. How you proceed is, of course, entirely a matter for you. In my view your company has chosen to ignore advice from the Office of Fair Trading and the FSA about levying illegal penalty charges and it is somewhat ironic that you now choose to try to delay matters by sheltering behind their complaints protocols.

 

I believe that this is a matter for the county court rather than the Ombudsman and I therefore intend to submit my claim form to the Court on Monday 27 February. In doing so I am giving you a couple more days to reconsider your response.

 

Yours faithfully

[Seminole]

Nicky Harris

Southern Pacific Mortgages Limited

1 Broadgate

London

EC2M 2SP

 

 

By fax

 

 

WITHOUT PREJUDICE

 

Dear Ms Harris

 

MORTGAGE ACCOUNT NUMBER: XXXXXXXXXX

FINAL LETTER BEFORE ACTION

 

Thank you for your letter dated 20 February.

 

I note that you propose to deal with this matter by using your company’s complaints procedure in accordance with FSA guidelines. How you proceed is, of course, entirely a matter for you. In my view your company has chosen to ignore advice from the Office of Fair Trading and the FSA about levying illegal penalty charges and it is somewhat ironic that you now choose to try to delay matters by sheltering behind their complaints protocols.

 

I believe that this is a matter for the county court rather than the Ombudsman and I therefore intend to submit my claim form to the Court on Monday 27 February. In doing so I am giving you a couple more days to reconsider your response.

 

Yours faithfully

[BankFodder]

Hmm ... feisty.

I like that. :twisted:

[BankFodder]

Hmm ... feisty.

I like that. :twisted:

[ToriaD]

Hi,

 

Also had nightmare experience with Southern Pacific following a remortgage brokered by the ever friendly Ocean Finance!!! Aggressive is an understatement - they took us to court for three months arrears at our first default, with 75% of the equity in our home remaining.

Shall watch with interest!!!

 

GOOD LUCK

[ToriaD]

Hi,

 

Also had nightmare experience with Southern Pacific following a remortgage brokered by the ever friendly Ocean Finance!!! Aggressive is an understatement - they took us to court for three months arrears at our first default, with 75% of the equity in our home remaining.

Shall watch with interest!!!

 

GOOD LUCK

[richardc]

They really must do better with their advertising - don't even recognize their"mediocre personalities"

[richardc]

They really must do better with their advertising - don't even recognize their"mediocre personalities"

[Seminole]

I think I may have cheesed them off. Got a second letter today saying "I will be looking into each of the charges so that a full explanation can be provided as to why they were applied. I will be liaising with our Collections Department in this connection... Our aim is to enable us to identify any charges that may have been incorrectly applied or that may be unjustified."

 

Laudable objectives but who wants to bet that they will find that they were all correctly applied and all justified by the "terms and conditions". Unfortunately I am flying off for a few days R&R tomorrow and so I won't be able to put the claim in as threatened but I'll do it as soon as I get back.

 

I intend to show these people as mich tolerance and understanding as they show to their customers.

[Seminole]

I think I may have cheesed them off. Got a second letter today saying "I will be looking into each of the charges so that a full explanation can be provided as to why they were applied. I will be liaising with our Collections Department in this connection... Our aim is to enable us to identify any charges that may have been incorrectly applied or that may be unjustified."

 

Laudable objectives but who wants to bet that they will find that they were all correctly applied and all justified by the "terms and conditions". Unfortunately I am flying off for a few days R&R tomorrow and so I won't be able to put the claim in as threatened but I'll do it as soon as I get back.

 

I intend to show these people as mich tolerance and understanding as they show to their customers.

[Seminole]

I got back today to find a large bundle of papers from SPML. To be fair they seemed to have taken the complaint seriously and their letter is a serious attempt to try to scare me off.

 

They've included a detailed account statement which is similar to the one I had before. I don't think I will seek reimbursement of the "arrears counsellor fee" or any of the legal costs. The arrears fees add up to £1,175 and they have also charged me just under £200 for arrears interest and I'm not going to challenge this as it's fair compensation for my breach of contract.

 

They make the interesting statement that "I confirm that SPML's fees are regularly reviewed to ensure that they are not unfair or excessive and they they cover the costs of the underlying work involved". It will be interesting to see how they prove that in court!

 

The early redemption penalty on the mortgage comprised a repayment charge of £140 and an early repayment charge of £8105. In the terms of the mortgage they helpfully enclosed it says the following:

 

"If the loan is redeemed in whole or in part within the first, second or third year of completion a sum equal to 6% calculated on the outstanding balance on which interest is charged, is payable and 1% or one month's notice in the fourth year and thereafter".

 

Any views on this. It's clearly a penalty for early redemption and it doesn't seem to have mich to do with a pre-estimate of loss but is the same sort of charge that is otherwise being challenged. It isn't a penalty for a breach of contract but rather a payment for terminating a contract early. I'd love to go after them for it but I would appreciate some advice.

[Seminole]

This should make their Friday moening!

 

Nicky Harris

Southern Pacific Mortgages Limited

1 Broadgate

London

EC2M 2SP 3 March 2006

 

 

By fax

 

 

WITHOUT PREJUDICE

 

Dear Ms Harris

 

MORTGAGE ACCOUNT NUMBER: XXXXXXXXXX

 

Thank you for your letter dated 24 February. As I had to go away for a few days, I have deferred issuing my county court claim against you but as I am now back I intend to take matters forward.

 

I appreciate the detailed history of the account you have provided and I note that you believe that I managed the account badly. This issue here is not whether I was in breach of contract (as I clearly was) but whether the charges levied were illegal. Other than the early redemption penalty which I have yet to decide upon the only charges I am currently challenging are the unpaid items, arrears management fees and the two undefined administration fees in the account statement.

 

You assert in your letter that these fees “cover the costs of the work involved”. You will need to support this assertion with evidence when this matter goes to court. I will be submitting the county court claim this weekend.

 

Yours sincerely

[Seminole]

Finally had confirmation from the court that they have served the claim against SPML. They have until 31 March to respond.

 

Game on.

[Nightmare4banks]

Hi all!

 

I agree with Bankfodder - go for it!

 

Also,the letter is very good - it pays off to be a bit arrogant and sarcastic but not vulgar or rude.

 

These finance companies are very good at chasing customers for monies but when it comes to "the other way around" they excel in dragging their feet.

 

So, a bit of pepper on their tails should not cause them any harm!

 

All the best and keep us posted on how you get on.

 

Any questions,please feel free to ask as I have alot of understanding of how mortgages are set up and the associated jargon.

 

Also just thought to mention....

 

I have mentioned this in another post on this site that I managed to receive 50% of the redemption fee when I changed products(from Main Residence to Letting out with the company's consent) with the same company after whinging!

 

So,if you do not moan or persue matters further nothing happens.

 

 

Going off a tangent,I may now consider persuing getting all my redemption fees!

 

This claiming of refunds is becoming addictive!

[Seminole]

Thanks for that.

 

I intend to see this through to the end but it's going to be fascinating to see how they respond. From my dealings with them they are almost robotically procedure driven and won't budge an inch from corporate policy. I wonder if they have a policy for dealing with a former customer being seriously arsey

 

I am thinking about the redemption penalty (it was £8k) and I will probably bring this into play if they make a settlement offer or I'll hold it in reserve and go after them for it later.

[Bookworm]

I wonder if they have a policy for dealing with a former customer being seriously arsey

 

Send in a 2 gorillas in suits with baseball bats and unibrows?

[Seminole]

Acknowledgement of Service filed 16 March 2006. They intend to defend all of the claim. Oh goody!

[Seminole]

Defence has been filed.

 

Standard argument that all they are doing is recovering their costs (they don't say what they are though!). Interestingly they send this after the OFT issued its statement.

 

Lets see what happens next.

[joneshousehold]

Out of interest did you pursue the early redemption penalty or not. Did you work out if it was the same as the other penalty charges or not. I am thinking of looking into this aspect separately and would welcome any of your thoughts on the matter.

 

Good luck on your case by the way. Has nothing else happened as yet?