"It's outrageous that borrowers who are already struggling and who have fallen behind with their mortgage repayments are being hit with such high fees. This does nothing to help their situation and just risks exacerbating their problems further. Also, the fact that many of the banks themselves have been bailed out from a similar position, means this an even more bitter pill to swallow.
"Given the inconsistency of these fees and charges between different providers it is hard to see how lenders can argue that they are treating customers fairly. Under the Mortgage Conduct of Business rules, regulated by the Financial Services Authority, all cases of financial hardship must be treated sympathetically.
"Perhaps the most callous charge of all, which can be as much as £100, is for a debt counselling service - yet you can get debt advice for free through the Citizens Advice Bureau or Consumer Credit Counselling Service. For providers to take advantage of their most vulnerable customers who have approached them for help to get a grip on their finances is unacceptable.
"Obviously lenders aren't charities, but no one wins if they continue to burden customers with more fees and debt. I'm sure many of those in arrears are completely unaware that some lenders charge for every call they make and letter they send."
