To consider ‘going to the papers’

[Hellorhighwater]

Three years ago, after my husband died, a major financial institution really cocked up my life. They have (finally) admitted responsibility, but are fighting me over compensation. The ombudsman is involved, but has now said they don’t cover all ‘consequential losses’, and I may have to sue for some of them. I can’t face it. It’s been utterly awful. Obviously it’s complex, but I’m missing £60k in equity I should have realised and about £800 a month ongoing. The damages add up to about £70k, so it’s not inconsequential amounts they’ve cost me. I’m trying keep my shopping budget under £20 a week this month for me, DD and two dogs. I’m penniless and they make millions in profits. It feels like they have all the power here, and it feels deeply unfair.

I’ve always thought that taking to the media is a low blow, but I’m so exhausted by the whole process I don’t know what else to do. I can’t carry on like this. ) I thought the ombudsman would be the end of it (they’ve been dealing with it since August last year and everything takes forever) and I thought perhaps a bit of bad publicity might push them into being a bit more amenable. Not that I actually have any idea how to do it. Email ‘The Sun’? (I don’t even read the news!). What do people think?

I should also say we were in contact with someone who had worked at the firm in our case at a high level. He advised us, as a poster has above, that they are super sensitive to negative media publicity, that’s their Achilles heel.

Apologies if PPs have already said this but have you considered going to Which? magazine? They're a consumer watchdog and very dedicated to what they do.

@TatianaBis

I don’t know what is the overall equity in these properties, but you might be better off selling up and investing the money with a wealth management company. A typical yield, depending on the risk level, would be around 3%. Have you looked into that seriously?

Covid aside, being a LL is always a pia - there are always problems.

Good equity. But the return is way more with students in, around 10 percent, plus the house value itself and once you factor in the capital gains, it’s financially unsound. I have considered it. I’m not a confident investor. I’d like to learn more about it, but I don’t even know where to start. Every scenario that involves selling involves intolerable losses.

DH and I let property for twenty years, and it’s never trouble free, but this level of hassle is unprecedented.

The consumer champions fine but as a general story the big paper won't be any help just an article to fill space .

I know what it's like. Our family lawyer took advantage of my ill dad. So much money went missing and I pursued for about 18 months until mentally I couldn't do it any longer. This is what they do. Take it to the press. Fuck them.

@Hellorhighwater

Three years ago, after my husband died, a major financial institution really cocked up my life. They have (finally) admitted responsibility, but are fighting me over compensation. The ombudsman is involved, but has now said they don’t cover all ‘consequential losses’, and I may have to sue for some of them. I can’t face it. It’s been utterly awful. Obviously it’s complex, but I’m missing £60k in equity I should have realised and about £800 a month ongoing. The damages add up to about £70k, so it’s not inconsequential amounts they’ve cost me. I’m trying keep my shopping budget under £20 a week this month for me, DD and two dogs. I’m penniless and they make millions in profits. It feels like they have all the power here, and it feels deeply unfair.

I’ve always thought that taking to the media is a low blow, but I’m so exhausted by the whole process I don’t know what else to do. I can’t carry on like this. ) I thought the ombudsman would be the end of it (they’ve been dealing with it since August last year and everything takes forever) and I thought perhaps a bit of bad publicity might push them into being a bit more amenable. Not that I actually have any idea how to do it. Email ‘The Sun’? (I don’t even read the news!). What do people think?

I had a similar situation when I was widowed. My husband died. I had two children. The finance mattered and one big organisation was difficult. I gathered all the evidence and sent it to the Telegraph's Saturday money person. I think she rang me once or twice to check, and to thank me for providing the evidence like letters. She got me my money and it was enough for me to carry on buying The Telegraph for years.

@ParkheadParadise

The Sun !!!! I would rather be homeless and penniless for the rest of my life than contact that scum paper.

No, you wouldn't.

@LizDoingTheCanCan

Take care doing this, you'd be opening yourself up to a great deal of public scrutiny, much of which will not be kind. Also, once you've done it, your details will be in the public domain forever.

When the Telegraph printed my case in their Saturday money section they used only my initials.

*@AKASammyScrounge
No, you wouldn't

Aye, I would.

Your MP.

Good equity. But the return is way more with students in, around 10 percent, plus the house value itself and once you factor in the capital gains, it’s financially unsound. I have considered it. I’m not a confident investor. I’d like to learn more about it, but I don’t even know where to start. Every scenario that involves selling involves intolerable losses.

I agree capital gains is the sticking point. But that 10% is not all income as you're aware - estate agency fees, managing agent fees (unless you DIY which is a hassle in itself), upkeep, tax, insurance etc all adds up. There's always the problem of non-paying tenants Covid notwithstanding.

I've got both - property income and investment portfolio - I'm not saying the latter is better than the former, simply that it's far less hassle. You can choose your yield level. You don't need to know anything about investment - that's what you're paying your wealth management firm for.

Just a suggestion, and you would have to provide a lot more info on here, so that you can moniker mumsnet and have hundreds or thousands of us, harass their twitter, facebook feeds, with ‘have you compensated xxxxx. you are keeping a mum and child penniless, how do you sleep at night, etc’. Mobilise mumsnet i’d say. Then the papers might be interested.

You could try ‘ you and yours’ the consumer affairs programme on radio 4

I’m so sorry you’ve been through so much, and apologies in advance for the fact that I am sure you have thought of all possible scenarios to get you out of this jam.

However, leaving the Financial Institution etc aside and looking at cost to you (tangible and mental health etc) since this happened of trying to hold onto everything… is there no version of this where selling one property and using the equity to get yourself straight and pay off all/almost all of the second one would be worthwhile?
If these were bought twenty years ago, unless you’ve mortgages to the hilt, there ought to be a very good amount of equity. The housing market is very busy right now. Spring is a good time to sell etc etc
I completely hear what you are saying about feeling a strong emotional tie to your husband’s intentions and the properties and income etc. (i understand emotional connection to property getting in the way of smart decision making better than most 🙈) BUT your husdband’s intention was to take care of you. The cost of holding onto everything is too high. Our financial future is precarious at this point with recession/interest rate rises/cost of living etc all uncertain. Governments will make it harder to own second properties due to housing crisis.
This “income” is only reliable income if it’s mortgage free. You only “own” these properties if they are mortgage free. Also being in a stronger financial position with paid off additional property will help with getting a residential mortgage instead which will be better rate always.
Would advise you to try and let go of keeping everything and instead focus on long term security (less/no mortgages) which will provide better ability to weather any future financial upheaval and well being of yourself and your daughter.
Totally agree one of the reputable money help pages/money box etc are good options - but to get you out of this hole and improve your circumstances going forward in a meaningful way you should look at your assets pragmatically (with outside help if needed - you won’t have to pay for an initial advice session from a Financial advisor) and try to future proof yourself a bit
Good luck

Sorry OP, no time to RTFT, but what stage is the Ombudsman at? Normally they give their initial assessment, and then the company makes you an offer based on that assessment. If you accept that offer then it is settled, and the outcome of the case is not published, which is good for the company. If however you refuse the company's offer the Ombudsman goes on to make a binding decision which would be expected to result in the same compensation. But that binding decision is published, so is bad publicity for the company, although your name is not published. Companies don't want the bad publicity so often, although not always, if when you get the Ombudsman's initial assessment you decline the company's offer, at that point they will up the offer in order to avoid the bad publicity. I did this on the advice of a friend who works in the field and received a higher offer at that point. Good luck!

Paul Lewis is also very good - Moneybox BBC radio 4

Sorry OP sounds awful. Good luck 💗

A Radio 4 consumer affairs, lunch time programme called 'You and Yours' may be worth a try.

@TheGreenLady

Hi OP, I’m a complaint handler for a building society so I’ll give you my take on this. You’ve said:

‘Financial Institution offers 2k compensation and about 6K difference between the mortgage I thought I could get, and the one I thought I could have had before they stomped all over my credit rating for the second time. But they won’t pay the 6k, only the 2k.’

Can you explain this please? Why won’t they pay the £6k if they offered it? Would the matter be resolved for you if they gave you £6K?

Have you set out exactly what you want and why you feel the financial institution is responsible for compensating you for that? E.g how much rental income have you lost and why are they responsible for you not being able to get tenants?

It seems a vey complicated issue so you need to be very clear on what you are asking for and WHY.

Thank you for your time. They said that they cannot reimburse me for the difference between my the mortgage I am paying, and the one I couldn’t get unless I got the new mortgage completed in three months, even though I am obviously out of pocket already. So they offer 2k distress and inconvenience. They refused to budge in this, I thought they’d negotiate, and we’d get to a figure in the middle, but they wouldn’t even talk about it. That was in May. I think they made a low offer, and I think they should not have withheld the costs.

I have sent a very clear list of what I expect, and why. For example, I was offered a company let which was quite lucrative, but would prevent a remortgage, so I had to turn it down (becaue they’ve told me if I don’t remortgage, they won’t compensate me). My agent gave me the price I could let to professionals at (the only other option) and I asked for the difference until June when I expect to get students again.

I was obliged to sell the motorhome quickly in July, and sold it for a fairly good price to a broker. But it was listed a few weeks later on eBay by the deal for 15k more. So if I were to buy it back, then that’s what it would cost. If they had paid what they agreed they owed me, I would not have had to sell it to pay the mortgages.

Why would a corporate let prevent a remortgage?

@samqueens it’s not so much an emotional tie, as making the numbers work. In 17/18 (the last average year) I made 37k, which is not a high income for MN, but a comfortable living I’m more than happy with. It was a below average year, as finance costs were high, there was an unusual void, but no major damages (the usual minor ones, obvs). That’s taxable profit after all the expenses. And coincidentally almost exactly what I earned when I worked as a mid-level health professional.

If I sold up and paid off the mortgages there would be about £350k after capital gains. And three percent would give me 10k, minus fees. 17/18 was not a stressful year, from the properties. The actual rental side is generally fine, not as passive as a share collection, but totally doable, it’s only the financing that has been a shitshow. (That’s a back of a fag packet estimate. And coincidentally, what I earned in my first full time job, although wouldn’t have a mortgage, so it would be maybe 14k equivalent. It would pay the bills, just. That’s what I managing on now, and I wouldn’t do this long term, I’d look for another income )

It would feel like a massive step back. They aren’t even remotely comparable. It’s a comfortable living, or just scraping by.

I’ve had very mixed experiences with financial advisors. They either seem to suggest really weird stuff, like acting as a location for a film company. Or basic blue chip shares. I’ve never had anything between. But I’d like to meet the wealth manger that could get me 8 percent income, plus capital growth (which is what I reckon 37k is)

I’d planned to fix a mortgage rate for five years, when DD will be looking at higher Ed. If she’s aiming for uni, I’d probably re-finance again then to help fund it (she may have other options by then, or choose a different path, but it’s something I’d like to fund if she wants to go) and possibly move one of the properties into her name when she goes, or sell and buy one her uni town. Then completely look at retiring from the whole shebang when she’s done and can stand on her own financial feet. It will depend on the what the post covid market looks like at the time, of course, but as I can’t know that, that’s the current plan.

@BritInUS1

Why would a corporate let prevent a remortgage?

Dunno. I asked and my broker she said no, lenders feel it’s too commercial. She did check with them. It’s got to be let by me, to a individual (or group of) not to a company (who sub-let’s to international students, I think)

Lenders are proper little snowflakes. If they’d just shut up and take my money (and they are asking half what I am paying now) we could all move on. (This is tongue in cheek. Mostly. The boiler is still working so I’ve had a nice not bath which has cheered me up no end. It’s a good job I’m easily pleased)

Oh, and I have utterly, utterly given up future proofing. Every time I have any sort of plan, some sort of apocalypse sideswipes it. I’m just trying to deal with the now!

@Okeydoky the investigator is still investigating, but have just let me know about the consequential losses being outside of their jurisdiction. So we are right at the beginning of your outline of the process.

Journalist here 👋

If you do choose to go to the press, make it a condition of your story being published that you have the final say on the last version of the copy - if they say no, don’t do it. Simple as. I’ve done this before for people and also had it done for myself when I was asked to do an article regarding having pancreatic cancer.

I won’t sugarcoat it - bad journalists do exist but honestly, there’s also a lot who are actually alright, speaking from experience that spans both side of the pen so to speak.

Sending lots of support your way - it sounds like you’ve had a torrid time.