Instead of notifying her the bank instead piled the interest on to the 'back of the mortgage'. It is not unheard of banks and lending institutions to add penalty fees or other charges to the 'back of the mortgage', because that way the charges rack up additional 'compound' interest over many years. An initial sum of say £100 added to a mortgage liability of hundred of thousands of pounds will result in far more having to be paid back at the end of the mortgage term. If the lady had not discovered the clause sooner she would have been tied into her mortgage contract far longer than the 3 extra years she had not originally agreed to in the first place.

This is one case study out of the many thousands that happen each year, however many are unaware of the vast consumer protection available to them that resulted a as consequence of these situations.

How Can I Challenge An Unfair Bank Charge Or Deceptive Practise In Regards To My Mortgage?

There is an established method of protocol in regards to challenging an unfair bank or fee, or downright deceptive practise. The FSA (Financial Services Authority) was setup on the 31st Of October 2004 to be held accountable for the regulation of the financial services industry and granted government statutory (legal) power to do so. These guys basically have the ability to make even the biggest financial firms sit up straight and listen. They are also the ones who developed the complaint protocol and procedure that ALL mortgage lending institutions & firms as well as intermediaries (the formal term for Mortgage Brokers, Advisors, IFAs etc.) must comply to.

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