Research by the site uncovered widely varying charges between lenders. It highlighted such differences as Northern Rock and Accord giving customers one month’s grace for a missed payment, while GMAC-RFC automatically charged £50.
It also criticised Halifax’s £35 fee for every letter or call regarding arrears and the charges for returned cheques or direct debits that varied from Coventry BS’ £20 to BM Solutions’ and Halifax’s £35.
Moneysupermarket.com further condemned the £100 fee for debt counselling charged by Halifax and GMAC-RFC and pointed out that Barclays and Abbey did not offer a debt advice service at all. It criticised lenders for being quick to agree a mortgage but lagging when it came to helping customers when they were most in need.
Louise Cuming, head of mortgages at moneysupermarket.com, said: “We must question if these lenders are treating customers fairly given the inconsistency of the penalty fees charged. Under MCOB rules, all cases of financial hardship must be treated sympathetically. My biggest concern is that it will cost a borrower to be treated sympathetically. I understand lenders are not charities, but if they burden customers with more debt no one wins.”
Ashley Clark, managing director for Need An Adviser.com, commented: “Lenders have a duty to protect their borrowers by dealing with debtors correctly.”
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