Your Comments & Experience - Preferred Mortgages

If you use information on this site please let us know if it's useful. E-mail: mail@bankcharges.info (we only publish first names to protect your identity).

[293] ----- Original Message ----- 
From: Alistair 
To: m@govanlc.com 
Sent: Wednesday, August 30, 2006 10:25 PM 
Subject: Preferred Mortgages Ltd 
Good evening 
I am writing to you to question a company:
Preferred Mortgages Ltd
Oakfield House
35 Perrymount House
Haywards Heath
West Sussex
RH16 3BX
I have had my mortgage with them for some 18 months and never missed a direct debit payment until recent
Over the past 2 months I have missed 2 payment deadlines due to a change of employment payment dates.
I have incurred 2 x £30 charges from this company following payment declined because of insufficient funds in my account.
I wrote to them with your first letter (payment declined) and they replied as follows:
Conclusion (theirs)
'I acknowledge your comments with regard to the Office of Fair Trading and Consumer Credit Act 1974 however, this information is not applicable to the mortgage you have with us as this is a regulated Mortgage contract. I would advise that Preferred Mortgages is not a bank and as such is not governed by the Banking Regulations but by the rules laid out by the Financial Services Authority.' [GLC note: Preferred Mortgages have got it wrong - if they are charging £30 default charges in terms of the mortgage contract, then the Unfair Terms in Consumer Contract Regulations will apply - see the actual OFT press release here - http://www.oft.gov.uk/News/Press+releases/2006/68-06.htm
The relevant part of it is:  The OFT now expects all credit card issuers to recalculate their default charges in line with the principles set out in a statement published today and to take urgent action where needed to reduce the level of credit card default fees. The industry has until 31 May to respond to the statement. These principles also apply to default charges in other consumer contracts such as those for bank overdrafts, store cards and mortgages].
I wondered if there was any other recourse I could follow and I would greatly appreciate your guidance
I look forward to your response in due course
Kindest regards
Alistair