Roshni’s mortgage lender kept chasing her to increase her payments, despite an agreed repayment plan to cover the cost of her mortgage shortfall.
What happened
Roshni’s house was repossessed and sold, leaving a shortfall. A shortfall is when the proceeds from the sale of a property can’t cover the outstanding mortgage or secured loans, leading a remaining debt.
Roshni agreed to a repayment plan with her former lender, where her monthly payments were due to be reviewed after a year. However, the lender continued to contact Roshni several times a month, asking if her circumstances had changed and if she could increase her payments.
What we said
We reviewed the details of the case and found it was reasonable for the lender to ask Roshni to repay the shortfall. But we didn’t think it was fair for them to keep contacting her every month when they’d already agreed a repayment plan.
We upheld Roshni’s complaint and told the lender to keep to its agreement to review her circumstances after 12 months. We also instructed the lender to pay Roshni for the distress and inconvenience they’d caused her.