CoolBlue News

Unfair bank charges - reclaim

What's happening now?
While bank and building society profits keep increasing, these charges are now being viewed as unfair. The FSA have said that where the fee has increased during the lifetime of the mortgage, the borrower should only have to pay, the fee that they agreed to at the beginning of their mortgage. Northern Rock was the first to respond saying that they will set aside £15 million towards such claims.

How do I get a Refund of Exit Fees?
Many people will be able to reclaim at least part of the fees they have paid. You need to check out what fees were in place at the beginning of your mortgage, and what you actually paid at the end. Then write to your mortgage provider in simple terms setting out the facts, including the address of the mortgaged property, your account number and how much you are claiming. The mortgage provider then has eight weeks in which to deal with your application for a refund. If they do not reply, or refuse your claim, you should send them a "Letter Before Action" and then issue legal proceedings against them in the County Court.