Miscalculated Mortgages From GMAC-RFC / Paratus
If you took a mortgage through GMAC-RFC (now known as Paratus) then there is a substantial chance that your borrowing may have been miscalculated.
GMAC-RFC were one of the very first sub-prime (non-mainstream) lenders. Business boomed through the late 1990’s and early 2000’s, but quickly ground to a halt in 2007 when they were forced to close down their sub-prime subsidiary called High Street Loans and drastically restructure their main operation. Finally, in May 2008 they stopped lending. By that time, they had provided more than 310,000 mortgages and still retained in excess of 50,000 mortgages on their books and they had grown to be the tenth biggest mortgage lender in the UK.
In the same year, a tranche of buy to let loans sold to Bradford and Bingley were of so poor quality that they had to be renegotiated. To cap it all, in October 2009, they were hit with an FCA fine of £2.8 million for mistreating mortgage customers, plus a compensation bill of £7.7 million. Serious failings from the end of 2004, all the way through to August 2009 had seen grossly unfair charges being levied on mortgage holders who had fallen into arrears with their payments or had been hit with repossession orders. The 114,000 borrowers affected were to be automatically compensated.
Despite this expensive slap over the wrist, they are known to have continued their dubious practices. Customers in arrears are dealt with unsympathetically and continual charges are levied. In 2010, the then FSA warned mortgage lenders of the danger of capitalising mortgage arrears, applying unfair charges and general arrears handling. These issues were then revisited by the FCA in 2016. We understand that Paratus were one of the 66% of mortgage providers that the FCA identified as still incorrectly applying their rules and guidelines.
If you currently have a mortgage with GMAC-RFC (now known as Paratus) and originally borrowed in excess of £75,000, Beat the Banks are currently offering a free audit. We can also extend this check to mortgages taken with GMAC-RFC after 2000, providing the borrowing was held for a minimum of 7 years and again, subject to a minimum starting balance of £75,000. The audit applies to residential, buy to let mortgages and all interest-only borrowing.
For more information on how to receive our entirely free mortgage audit, please contact Beat the Banks on 01382 200474 or for free on 0800 193 1234. Or if you live locally, why not simply pop into our office with any of your mortgage paperwork and we can start the audit process immediately. Our hours are 8am-8pm weekdays, except for Fridays when we close at 6pm. On Saturdays it 10am-2pm.