Comment on the FSA fining GMAC-RFC for treating borrowers unfairly

Published:

29/10/2009

Topic:

Press Release,Money,Mortgages

Hannah-Mercedes Skenfield, mortgages channel manager at monesupermarket.com, said; "This should act as a serious warning to all those lenders treating their struggling customers in a heavy handed manner.

"Our analysis* shows that GMAC-RFC is amongst those charging the steepest fees for returned cheques or direct debits, arrears fees and debt counselling. However there are other well known lenders who aren't too far behind.

"Charging for debt counselling, a service that can be obtained for free through numerous charitable organisations - is a particularly unfair fee to swallow. Lenders will find it in their benefit to go a little easier on borrowers in arrears, as this can help with getting monthly repayments back on track. Serving further penalty fines to those struggling to repay their debts only exacerbates the problem.

"Borrowers, for their part, should keep in frequent contact with their lender if they are struggling to make their mortgage payments. Often an open dialogue between lender and borrower can produce a positive outcome for all concerned."

* Mortgage Arrears Charges
 

Lender	Returned cheque/ direct debit	Arrears 1 or more monthly installments	Arrears 2 months and over	Arrears 3 months and over	Debt counselling/Arrears services
Abbey	No Charge	£40	£40	£40	up to £79.90
Alliance & Leicester	£30	N/A	£35	£35	up to £79.90
Bradford & Bingley	£8	£30	£30	£30	£80 + VAT
Halifax	£35	For every letter or call £35			£100
HSBC	No Charge	No Charge	No Charge	No Charge	No Charge
GMAC	£30	£50	£50	£50	£100
Lloyds TSB Cheltenham & Gloucester	£31	£10	£31	£206	£94.00
NatWest	£35	£25	£25	£25	N/A
Northern Rock	£30	N/A	£25	£25	Variable (Free if customer accepts appointment)
Royal Bank of Scotland	£35	£25	£25	£25	N/A

Sourced by www.moneysupermarket.com 16.10.2009

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