Mortgage paid off - now building society want more money

[Yodel]

In March I finally managed to pay off the remaining balance on my mortgage (hooray!). I rang the building society to get a settlement figure and paid it off same day via a CHAPS transfer. Now they've written to me saying that after an internal audit they've calculated that I still owe them �200. Do I have to pay this? I took the figure they gave me over the phone in good faith. What's more, they're stating that the settlement date was 1 April, not 17 March - are they maybe trying to charge me interest for the time it took their adminstrative staff to process the settlement?

[Oneeyedvic]

it may be that the paymnet is a 'sealing fee' which is not often put in the settlement figure. Most finance comapnies charge one varying between �50.00 and �500.00

[Yodel]

Thanks oneeyedvic, but I've already paid a �90 adminstration fee for settling the mortgage, so I don't think it's that.

[Catso]

It's a shame you got the figure over the phone and not by fax or letter, I think you'd have been able to put stronger case if the quote was in writing.

Have you objected to this 'extra' payment already?You could consider a complaint the the BS ombudsman (or whatever they're called).

Some BS still only calculate interest monthly, not daily, so perhaps it's something to do with that. They are treating the mortgage as ending at the next due payment date. (Just speculating here)

[atolhurst]

I would have thought they'd record their phone calls, given that they deal with money stuff

I remember querying an insurance quote I got once; they had given me a quote which I accepted and paid over the phone. Then got the paperwork to check and send back, only to find they'd got my DOB wrong. I told them this and they wanted to charge me another �100 on top - I said no because I'd given them the correct info. They reviewed my phone call and it was the person at their end who typed it wrong so I kept my lower premium.

So, I would say to them, as you have said here, that you took the quote in good faith and paid as instructed and that you now consider the matter closed. I would suggest to them that they review the phone call (you'll need to have some idea of the date and time it took place) between you and the advisor, and then, unless they can find that you made an error, that they look at some internal training for their staff.

[atolhurst]

And re the settlement date you mentioned - I think that's c*ap

given that you got quote and paid by chaps on that date, the money would have been in their possession that day so they were accumulating the interest from then anyway.

their admin being slow, isn't your problem. If you hadn't paid the money I would have seen where they were coming from, but you did. So I'm not sure they have much of a leg to stand on.

[Yodel]

Thanks for the input guys. I have already written back to them stating the reasons why I object to paying this amount. If they take it any further I'll ask them to examine their phone records.

[compman]

I think you're being hard done by.

When I paid mine off a couple of years ago, the building society suggested a date about two weeks after the date I called, so they could work out an exact figure. It meant I had time to arrange a transfer of money to my current account, and send a cheque off to them by normal post - not the expensive CHAPS method. Also, I think because of the length of time I had my mortgage, they did not ask for any further admin charges.

Did you take the name of the person who gave you the original figure? I don't know how long you had the mortgage, but asking for another �200 after giving you a settlement figure seems very harsh to me. They should be able to waive this surely.

I think you need to stand firm on this one, you cannot go to the ombudsman on this until you've exhausted all other avenues. Whatever you do, don't lose your temper at any stage.

Does the BS have a branch locally, if so, go in and have a word with the manager or a senior member of staff;after all they don't want their 'good name' blackened by you around the town - do they?

Good luck - keep us all posted whatever happens.

[erimus1]

If you don't have a settlement figure in writing then you do not have a leg to stand o.

[Yodel]

Thanks everyone, will post details of the eventual outcome.

[Yodel]

Thanks to everyone who contributed to this thread. Have received a letter today from the building society saying that they did receive full payment on 17 March, and the extra �200 was interest for the two weeks it took them to credit my mortgage account. They have therefore withdrawn the demand with apologies. Result! Glad I didn't just go ahead and pay it.

[compman]

Thanks for coming back with an answer, glad to know you got a positive result. I wish more people would report back to let us know whether an AB query was resolved.

It certainly shows that it pays not to let these big organisations walk over you.

Always put your foot down with a firm hand!