- A Barclays customer was told his early repayment fee would be reduced
- When he left, the full amount was taken from him.
- The bank admitted that it gave wrong advice but refused a full refund
- Do you have a consumer problem? Contact: [email protected]
I am selling my flat to move up the housing ladder. I have a mortgage with Barclays and it has an early redemption fee.
However, I contacted it to check what the penalty would be if I redeemed the mortgage a few weeks before the penalty date. I was advised that if I completed on or after 3rd August (90 days before) the penalty would be reduced by 90 percent.
As a consequence I went ahead with the sale and ensured that the completion was delayed to this date, even if it meant requiring a few months additional mortgage payments on the vacant property.
Now, a few months after the initial advice from Barclays, and closer to the completion date, the bank has said that the penalty charge will not be reduced.
A Barclays customer was left paying thousands more than he thought on his way home
He has admitted that he has given me wrong information but is blatantly refusing to respect his original position.
Although Barclays has offered £200 compensation, I now have to find an additional £3,500 that was not budgeted for. Is there any way to get Barclays to honor its original agreement? df, via email
Grace Gosden, This Is Money consumer expert, answers: Just when you thought you were on the home stretch while walking, Barclays put a spanner in the works that ended up costing you thousands of pounds.
Your mortgage penalty period was due to expire in October last year and since you were selling your flat, you called Barkley to ask what the redemption penalty would be.
Early repayment fees are often charged by lenders for those who repay the whole or part of their loan within a specified period.
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These fees apply when a lender, setting up funds to provide a loan, expects that they will hold the funds for an agreed period of time.
Lenders say there is a cost to them if customers pay off some or all of the loan sooner with that fee, which is designed to offset this cost.
While Barclays advised that the fee for you should be in the region of £3,500, it added that if you complete on or after 2 August, ideally 3 August, the fee should be 90 percentage will decrease.
As a result, you decided to delay completing the sale to take advantage of the lower penalty charges.
You completed the exchange on the third day as advised by Barclays, but were then charged a full fee of £3,274.05.
Obviously, this was quite shocking as you were clearly told that there would be a massive 90 percent reduction.
Although the information the bank initially gave you was not in writing, the call was recorded and Barclays has since admitted by email, it has given you ‘incorrect’ information.
You say this delay hit you hard because it means you have to pay more mortgage payments, council taxes and service fees.
Barclays has been criticized by a client after refusing to respect the advice originally given
I contacted Barclays because it seemed unfair that you not only changed your plans on their advice but also admitted in writing that it was wrong.
Fortunately, after talking to the bank, it seemed that there was an error of judgment.
A Barclays spokesman said: ‘It is clear on this occasion that the service Mr F received was below our usual high standards. We recognize the disappointment it caused and the discomfort that followed, and can only apologize.
‘We have agreed to refund the initial repayment fee in full and wish Mr. F all the best in his new home.’
Thankfully, you now get a full refund of £3,274.05 as well as £200 compensation for the time and frustration caused by this incident.
Barclays said early repayment fees are complex calculations and can vary by the time the mortgage is redeemed it recognizes that you were given false information.
Fortunately, you are now settled in your new home and can close the door on this issue.
However, one lesson you – and other bill payers – can take from this incident is to insist on important information in writing, whether by letter or email.
While this may sound out-of-the-box, it is always useful to have written documentation to back up your complaints in such situations.
A Parcelforce customer was disappointed after the firm lost his passport during transit
Hit and miss: This week’s naughty and good list
Every week, I look at a few companies that have fallen short of expected standards as well as those that have gone the extra mile for customers.
Miss: This week, parcelforce A reader’s passport was under a microscope after it was lost.
Sarah said: ‘I sent a parcel from the UK to the Republic of Ireland via Parcel Force on 8 July at my local post office. I paid an additional £26.16 total for Global Priority and was advised that this would take three business days.
‘The parcel contains the documents for my new Irish passport and also includes my UK passport as part of the application. Even after more than two weeks have passed, the parcel has not yet arrived in the Republic of Ireland, according to Force Tracking.
‘I have contacted Parcelforce and it has said that all countries globally are now under suspension of service guarantee for delay in speed of delivery due to the coronavirus situation. It states that due to the nature of the issue it will be unable to assist me at this time.