I called up PCF yesterday to see why my mortgage payment didn’t come out of my account last Friday. They informed me that they had received a request from my lawyer for a payout amount. Ok – but since we aren’t paying off the mortgage until the 30th of January, why didn’t my payment come out on the 20th?
I got some bullshit answer about how once they got the request – all payments stop. If that was it, I wouldn’t be too upset, but here’s the kicker: we get charged $516.85 of interest between Jan 13th and Jan 30th plus an additional $0.54 of penalty interest (no idea).
Compare that $517.39 of interest we’re paying with the two payments ($333.40 each) we would have made (one on the 20th and one on the 27th) and it looks like we’re ahead right? Not even close. If they had taken those payments – a good portion of each would have gone towards the principal instead of all of the $517 going towards interest. On top of that, the penalty for paying off the mortgage early ($2789.42 plus an admin fee of $225) would have been a bit lower on the 30th as compared to the 13th. I’ve also been informed that if they don’t get their money on the 30th then there is a per diem of $30.40 that applies for every day the payment is late.
The penalty for paying off early is another huge scam if you ask me – but since I agreed to it when I signed the papers I can’t complain too much about that one.
Anyways, just goes to show that even the ‘good’ banks (when I say good I’m talking about the fact that PCF has no-fee accounts) will screw you in the end. If I could get by without using the banks, I wouldn’t hesitate to do so.
Hmm… looks like they have all the money, and you need it.
What that about the golden rule?
“He who has all the gold makes the rules.”
I feel for you Kev, I really do. Guess you shouldn’t have bought a shiny new house after all :-)
Don’t worry, no doubt you’ll soon get a bill from you lawyer with all his expenses for stopping that payment, let me guess:
phone call: $32
photocopies: $19
stamps: $12
etc. etc.
Gotta love it.
I knew somebody was going to say, “Well they have the money and you need it so either accept the gouging and shut up or don’t ask for the money in the first place.” If that’s the way you feel, fine – but it’s not going to stop me from complaining. :)
As for the lawyer Steve, we got lucky. Our lawyer is the father of one of the guys that Amy works with. I think his rates are reasonable compared to most that I’ve heard. Besides, I don’t mind paying the lawyer for doing the work, it’s the real estate agents that make most of the money for the least amount of work – but that’s a rant for another day. :)