The bank has refused debt forgiveness – that is their policy. If you client has been overcharged then you can make a complaint to the Financial Services Ombudsman.
They are refusing to capitalise the arrears at this point in time. So what? Your client can make the full interest and capital repayments, so they should do so. It’s clear from the bit you have underlined that if they keep this up for 6 months, UB will review it. It’s very likely that UB will then capitalise the arrears. I understand that none of them like capitalising the arrears until they see that the borrower is actually demonstrating that they can meet the required repayments.
I’m delighted to see you here as a visitor! The issue here is about more than only what is in the letter, they have a RIP and a homeloan, the home is on interest only, the RIP on capital and interest, it should be the other way around.
The proposal had several facets and rather than deal with them individually (and I accept they won’t write down any arrears) they instead blanket reject even the parts that make sense. This is a delay tactic, and took a full 5 weeks to them to reply to!
The issue is really about the sincerity of the negotiation and from what I can see it is often not sincere at all from the banks perspective.
thanks again for dropping by!
karl
Hi Karl
I don’t understand the point you are making here.
The bank has refused debt forgiveness – that is their policy. If you client has been overcharged then you can make a complaint to the Financial Services Ombudsman.
They are refusing to capitalise the arrears at this point in time. So what? Your client can make the full interest and capital repayments, so they should do so. It’s clear from the bit you have underlined that if they keep this up for 6 months, UB will review it. It’s very likely that UB will then capitalise the arrears. I understand that none of them like capitalising the arrears until they see that the borrower is actually demonstrating that they can meet the required repayments.
Brendan
Hi Brendan,
I’m delighted to see you here as a visitor! The issue here is about more than only what is in the letter, they have a RIP and a homeloan, the home is on interest only, the RIP on capital and interest, it should be the other way around.
The proposal had several facets and rather than deal with them individually (and I accept they won’t write down any arrears) they instead blanket reject even the parts that make sense. This is a delay tactic, and took a full 5 weeks to them to reply to!
The issue is really about the sincerity of the negotiation and from what I can see it is often not sincere at all from the banks perspective.
thanks again for dropping by!
karl