Court blocks repo bid
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A GMAC-RFC borrower with £14,000 in arrears charges whose mortgage was sold on to Wave Lending narrowly escaped repossession this week.
Last month, the FSA fined GMAC-RFC £2.8m for unfair treatment of customers in arr-ears and excessive administration charges between October 2004 and November 2008. The company has started the process of paying out £7.7m in customer redress.
The self-employed borrower, who does not wish to be named, has seen the repossession order by Wave Lending on his family home frozen by a circuit judge at Coventry Combined Court. The borrower faced £14,000 in arrears fees from £40,000 of arrears.
Around two years after taking out the mortgage with GMAC-RFC, the borrower’s loan was sold to Merrill Lynch subsidiary Wave Lending in June 2008 along with the outstanding arrears fees. He says: “I am sure I am not alone in this situation. My mortgage did go into arrears but GMAC-RFC wanted huge amounts of money from us every month and the charges began straight away and that did not help us.”
The FSA says it is the job of GMAC-RFC to actively contact borrowers from between November 2004 and September 2009 to begin repayment proceedings.
No one at Merrill Lynch was available to comment.
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