Mortgage Exit Administration Fee commonly known as MEAFs, is a fee that is paid when a client is closing an existing Mortgage account. Apparently the fee covers administration and legal cost as well as staff.
It is also referred to as sealing fee, discharge fee, Deed Release Fee, final Redemption Fee or Final Administration Fee.
In case a contractor is charged a higher MEAF than in the contract, the FSA suggest that they get a refund. This is because the lender increased the cost without contracting the consumer.
The consumer usually has a period of six years to lay his/her complaint according to the standard rules. He/She can even lay the complaint three years after realizing any discrepancy. The FSA keeps on updating the prices hence if the 2007 prices have passed; there are still, the 2012 prices.
The process of reclaiming the MEAF is quite simple as the lender only refunds the difference between stated MEAF and the actual charges from the contract. The consumer can do this either via a telephone call or a letter.
If the consumer prefers to use a phone call to complain, he should call the older lender and say he needs to reclaim his Mortgage Exit Fee. They should not give out any details about the contract. They should only inquire about the charged MEAF and charges on the contract.
Reclaiming via a letter should be done online using the given template. The consumer only needs to edit the letter before sending it.
The amount that a consumer gets as a refund could be calculated easily by following simple procedures given in the Internet. If the consumer is not satisfied with the amount to be refunded, they can pursue the lender for more through a Militant.
The FSA does not support this method but some people have used it efficiently to get more money. Most lenders decline to give in easily since the method is not straightforward and some cases even end up in courts.
Although it is highly arguable that the MEAF is not justified since according to UK Law, no one can sue another person for failing to honour a contract. The only way to get even is to charge them a cost that is promotional to the amount bleached.
The standard amount of Mortgage Exit Fee for closing down an account is relatively low, not more than £50. Therefore any consumer should not pay any amount higher than £50 irrespective of what is stated in the contract.
If the amount exceeds the standard amount, the consumer should request for a breakdown from the lender and if he refuses, he should demand for a reduction.
A consumer looking to adopt a militant approach, though it is not encouraged, should use the provided template and if it doesn’t work, threaten the lender with a court action.
If the consumer has other existing Mortgage Loans, he/she should strive to get their exit fee before it is too late. For cheaper rates the consumer should pay the fee down to £50 and always maintain it open. However, he should check the contract first to ensure full clarity on payments modes.