Redress for Kensington mortgage arrears customers - Mortgages - News - Moneyfacts

News

Redress for Kensington mortgage arrears customers

Redress for Kensington mortgage arrears customers

Category: Mortgages

Updated: 12/04/2010
First Published: 12/04/2010

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
Kensington Mortgage Company has been told by the Financial Services Authority (FSA) to redress mortgage arrears customers that it treated unfairly.

The firm said it had agreed a settlement with the regulator following an investigation into the servicing of mortgage accounts in arrears and certain associated charges during the period 1 January 2007 to 31 October 2008.

The move is expected to cost the firm more than £1 million in pay outs to customers, while the FSA has also imposed a fine of £1.2 million.

In a statement, Kensington apologised to all those customers who had been affected and confirmed it was working to redress them as quickly as possible.

"This was a retrospective investigation into arrears processes and our charges were in line with the market at the time," the firm added.

"However, we acknowledge that there were certain fees where it was felt that the charge did not accurately reflect the additional work and cost incurred by Kensington. We no longer charge these fees and will be writing to customers who have been affected."

Details of the fees to be redressed are as follows:

  • A proportion of the charge for cancellation of monthly mortgage payment by Direct Debit when in arrears (average refund £8.75).
  • Charge for administration of more than three consecutive returned Direct Debits when in arrears (average refund £25).
  • Early Repayment Charges applied to arrears fees and charges as part of the total balance (average refund £37).

Customers who think they may be due redress have been told they do not need to take any action now, as Kensington will be contacting those customers who have been affected by 31 May.

Find the best mortgage for you - Compare best selling mortgages

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Goodbye to the Help to Buy Guarantee

On 31 December, phase two of the Help to Buy initiative will be withdrawn from the market. It’s certainly done wonders for the high loan-to-value sector, so we thought we’d take a closer look at the significance of the scheme and the effect it’s had.

Remortgaging bounces back

Remortgaging has been enjoying a welcome boost in recent months, despite September’s slight dip, with many homeowners capitalising on record low mortgage rates to boost their finances.

Bank of Mum and Dad holds the (house) key

The Bank of Mum and Dad is an important source of finance for many young adults, and it seems that they still hold the key – in more ways than one.
 
Close