Bank Legal Charges

R

radio gaga

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Hi, During last year and early this year I negotiated a split mortgage deal on a buy to let house and signed for it early this year. In tandem with these negotiations the bank brought a legal case to repossess the house. I had the split mortgage signed for months before the court date.This legal case was then dropped by the bank. They have recently sent me a large legal bill and called it arrears. I heard recently they should not follow two avenues at once.
My question is am I liable for the bill and how could this be classed as arrears as I have fully paid
since my restructure agreement. The PTSB bank is charging me 5.8% interest on the fees.
 
Richard,

The devil is in the detail, which started first, the legal or the negotiations. I should point out that the bank are entitled to start legal proceedings against you once you have defaulted on the terms and conditions of your loan agreement in relation to a buy to let property. However, having said that, as soon as you signed the split mortgage deal with the bank, the bank have effectively resiled their litigation. They are entitled to recover monies expended by them regarding legal fees up to the date you signed the split mortgage deal, but no more. My advise would be to look for a comprehensive account of the legal fees outlayed by the bank, paying particular attention to the dating of the various fees. Then enter negotiations with them to come to a mutual acceptable agreement. For the Bank to attempt to charge you interest on these legal fees they must prove to you that their legal representatives are charging such rates. If they cannot do this, you do not have to pay this interest, unless of course, there is such a clause contained in the mortgage agreement.
 
Last edited by a moderator:
RICHARD GLEESON said:
Hi, During last year and early this year I negotiated a split mortgage deal on a buy to let house and signed for it early this year. In tandem with these negotiations the bank brought a legal case to repossess the house. I had the split mortgage signed for months before the court date.This legal case was then dropped by the bank. They have recently sent me a large legal bill and called it arrears. I heard recently they should not follow two avenues at once.
My question is am I liable for the bill and how could this be classed as arrears as I have fully paid
since my restructure agreement. The PTSB bank is charging me 5.8% interest on the fees.
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I sincerely hope you have not used your real name. Banks read this forum, so be aware.
If you could give more details it would be helpful as it is not clear what is going on at all.

Could you clarify what is the legal bill for and how much it is.
 
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