As the country lumbers into its worst recession for decades
you'd think that mortgage lenders would be doing all they can to
help those who struggle to keep up with their repayments.
However, it's depressingly unsurprising to learn that instead of
offering a helping hand to those in need, the companies are
continually saddling them with excessive mortgage arrears charges
and extreme legal measures.
The major offenders are the "non-bank" sub-prime mortgage
lenders (i.e. those who give mortgages to high-risk customers with
poor credit ratings) who saw their finances evaporate in the credit
crunch, and in a desperate effort to recoup their losses are
punishing their hard-up customers by fining and repossessing at an
alarming rate.
Such companies are thought to be responsible for up to 70% of
repossessions in the UK and are causing untold misery for
struggling customers.
However, things are looking up for those who find themselves
repeatedly punished by their lender.
Lenders now know that they will have to
clean up their act and start treating their customers like human
beings rather than cash-filled piñatas.
Just last week, mortgage provider GMAC-RFC was fined a record
£2.8m and ordered by the Financial Services Authority to pay back
£7.7m to customers it had overcharged and treated unfairly. The FSA
found that their mortgage arrears charges were not proportional to
actual costs and that many repossession orders were given without
less extreme alternatives first being considered.
The FSA's action is expected to shake up the industry and will
have unethical companies (they know who they are) running scared.
Lenders now know that they will have to clean up their act and
start treating their customers like human beings rather than
cash-filled piñatas.
It is already possible to claim back unfair mortgage arrears
charges and in light of the recent developments companies should be
more willing to hand out refunds. If you would like to know more
about reclaiming these charges then consult our free and comprehensive guide to
mortgage arrears charges.
Claims Financial
Comments (0)