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I changed my bank to save money, now my mortgage lender is charging £30 - Is this allowed?

t33jay
by t33jay 31 May 2010  |  Comments 4 comments  |  Love Love  0 loves

I have just divorced my 13yrs relationship with one of the big banks. Everything was automated including Direct Debit and the rest. Now I got a letter from my Mortgage lender charging me £30, for changing my bank and for the fact that direct debit is now coming from different account. Is this normal as I have never changed bank before?.

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Comments (4)

  • MikeGG1
    Love rating 824
    MikeGG1 posted

    Check the terms and conditions of your mortgage. They have to update their systems, so a charge is not unreasonable, but £30.00 is, in my opinion.

    Mike

    Posted on 31 May 2010 | Love Love  0 loves Report
  • Mister W
    Love rating 16
    Mister W posted

    The change of bank is an automated process (I've just written the part of my company's IT system that does it) so the cost to your mortgage lender will be zero or close to zero.

    Posted on 01 June 2010 | Love Love  1 love Report
  • Mister W
    Love rating 16
    Mister W posted

    I've done some digging around for you and I can't find anyone who charges for a change of bank. The Direct Debit website (www.thesmartwaytopay.co.uk) tells you how to go about changing your bank and there's no mention of charges. However, there are some unscrupulous companies out there who will charge you for anything and everything so check the small print of your mortgage contract. If it isn't mentioned then I think you have a reasonable case for claiming that it is an unreasonable charge.

    Posted on 02 June 2010 | Love Love  1 love Report
  • t33jay
    Love rating 0
    t33jay posted

    Thank you all for responses.

    I have just dug all my doc out and surprise surprise it says 'Any alteration to your bank payment details will incure a charge' (or something similar).

    I called my lender to rant and they said the DD was stopped and therefore it warranted the cost. I called my new bank they said my lender was informed about the switch - not stopped - and the DD was automated to the new account. I called my lender again to relay that, but they refused to bulge.

    Now I have no idea what to do.

    Posted on 02 June 2010 | Love Love  0 loves Report

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