Case with Ombudsman

Hi All,

I posted here a good while ago about getting ex off the mortgage (he isnt paying) anyway ICS wouldnt allow it as the house is in negative equity. They agreed to reduce payments for a year, then another year but none of the capital would be paid off and I appealed the decision based on the fact that they didnt offer any long term options. The came back with an extension of the mortgage term (10 years) to when I am 70, however, the monthly repayments were 200 over the reduced amount of 1000. Anyway I appealed that decison to the Financial Ombudsman who offered mediation, I said yes, the bank didnt reply to them at all so they will make a decision based on facts presented. I am falling further into arrears of 400 per month as the bank have not replied to any of my emails/calls about reducing the mortgage while the appeals process is ongoing. What I was wondering is, why the bank didnt agree to the mediation? Would anyone have any thoughts on this?

What decision have you appealed here?

The Ombudsman does not hear complaints about a credit decision, which seems to be what you have complained about.

They will hear a complaint about failure to adhere to the MARP and might order the lender to process your application again.

I have never heard of a bank agreeing to mediation, so it has no significance.

Brendan

Thanks Brendan,

I've appealed the decision they made under the Marp process. They chose not to come up with any long term options that are doable. They have ignored calls/emails and haven't engaged much at all. The decision to extend the term was based on me appealing their interest only option as short term. I suggested it along with other measures to reduce the monthly payments. I also offered a large lump sum (from family) if ex was taken off mortgage but was told not to bother applying.

Thanks again, was worried about ics not going to mediation as I thought it was the done thing to finalise things.

Arches - could you please tell us more about the process of using the Ombudsmen? I am in the same boat where the bank wont respond to my correspondence. Last week I called the bank and the woman in arrears 'support' at EBS (who was incredibly rude BTW) said that her colleague had emailed me (no email has been received) and that they had decided that my Financial Statement was deemed unsustainable and they wont grant me an interest-only period. The issue I have is that the arrears accruing every month is massively overinflated because Im not being given the interest-only option. I was told someone would ring me asap and of course the phone hasn't rung and the alleged email has not been forwarded onto me.

MABS wont touch me now as I have been deemed an investor because my apartment is now rented out, so I am considering approaching the Ombudsmen but am unsure of the procedure. Is there a waiting list? Any information would be appreciated

You need a final response letter from the bank. You will have to request a final response letter by registered post.

Thanks Time. Good to know.
They had written that I was "uncooperative" earlier in the year despite me sending them letters and statements regularly. (I think it is because I had ignored the BTL application form)
In their more recent letters which are still quite vague and mostly just point out my arrears, they say that they wont/cant start legal proceedings until after 12 months. But also qualify it in saying that they have the right to act sooner if I am seen to be 'uncooperative'. So, I am not really sure what they are planning now. I really want to come to an arrangement but they dont seem keen.

Munchy,

I can only go by my experience. I contacted the bank in April 2012 to inform them of difficulties in payment. I did most of the running as I wanted this sorted out in the long term. I entered the MARP process at this stage and met with the bank twice. As Brendan says you can appeal to the Ombudsman but only if you are complaining about a decision made by a bank. I was unhappy with the process as I felt they didnt look at all options available to me, just kept palming me off with interest only. I owe 256000 and I would still owe that in a few years if I kept up interest only. If the mortgage is unsustainable I also wanted to know that. So what I did was go to MABS and talk to them, they helped with my appeal to ICS originally. Following this, I appealed the decision to the ombudsman. I was always willing to talk and co-operate and have emails/letters to prove that. I'm not sure where you can go if MABS cant see you, could you talk to a solicitor - FLAC maybe?

Arches1 said:

Munchy,

I can only go by my experience. I contacted the bank in April 2012 to inform them of difficulties in payment. I did most of the running as I wanted this sorted out in the long term. I entered the MARP process at this stage and met with the bank twice. As Brendan says you can appeal to the Ombudsman but only if you are complaining about a decision made by a bank. I was unhappy with the process as I felt they didnt look at all options available to me, just kept palming me off with interest only. I owe 256000 and I would still owe that in a few years if I kept up interest only. If the mortgage is unsustainable I also wanted to know that. So what I did was go to MABS and talk to them, they helped with my appeal to ICS originally. Following this, I appealed the decision to the ombudsman. I was always willing to talk and co-operate and have emails/letters to prove that. I'm not sure where you can go if MABS cant see you, could you talk to a solicitor - FLAC maybe?

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Always keep a note/copy time of any communication phone/mail etc with your lender. Be disciplined on this . You will not remember everything.
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From the Banks view, if you are paying interest (i assume you can afford that), things arn,t getting worse. They will probably live with that , the question is can you?They can,t TELL you mortgage is unsustainable in the longer term. But if market improves and they see a way to cut THEIR losses ,they will revert to form and sell house over your head by insisting you comply with the original terms.
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Suggest ; re-write (no phone calls) keep a copy and ask them to continue to accept interest only until matters improve.In that way you should avoid them in future reverting to type ie hang you !!!

Remember keep EVERYTHING in writing .

Thanks for all the advice Salmon9077, everything is in writing, calls followed up by e-mail etc. They won't reply to my requests,to keep it at interest only while appeal is ongoing. I think I will have to go higher than my case manager who blatently ignores all correspondence.

Thanks again

Hi Arches and thanks Salmon9077. In my case all emails and registered letters are ignored and unanswered, and when I called this week the woman said a colleague had tried to contact me and I was inaccessible - not true as they have my phone, email and home address. She said he would call me right back and its nearly the end of the week and no call back. Tomorrow Ill put that into an email - to follow up my unanswered call etc. I just worry that they will justify early proceedings and prior to the 12 month period since they deem me 'uncooperative' and my main objective is to reach an agreement. They havent agreed to interest only as I am paying them monthly by standing order - and its around 80% of the interest payment. I hope to get work soon and start paying the full interest-only amount. Chasing my tail around and around. Its very tiring.