Libor Rate Fixing Scandal - Reclaiming?
Comments
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What people don't realise about the LIBOR rate fixing scandal, is that 'fixing LIBOR' means that one or more banks lied so that a LIBOR rate was set at (say) 5.18% instead of 5.17%. .0
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FACT - Interest rates are at all time low - (Barclays) First Plus have refused to lower. .FACT - Barclays have been found guilty of fixing the Libor rate obviously to increase profits. (Barclays) First Plus cite Libor rate as reason not to lower..Fact - First Plus have paid out millions in missold PPI, have been closed to new business for some time and therefore are not in competition.0 -
in the barclays libor rate scandal, it would be more of a case of them setting it at 5.17 instead of 5.18
As I understand things, there was a period of time when Barclays tried to fix LIBOR up (in order to make more money) followed by a period of time when they tried to fix LIBOR down (in order to be helpful to the BoE, apparently). The OP seems concerned with the former rather than the latter, although it's entirely possible that taken together the two periods cancel each other out.0 -
All I know is that at present there is no evidence that whis has caused a detrimental impact on customers.0
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Having had a firstplus loan for 10 years, (not sold to me as a subprime loan), and advertised as competitive and supported by Carol Vorderman, I have NEVER seen a reduction in my interest rate compared to my main mortgage, have a current base rate differential of 12.1% when the differential started at 4%, which Barlcays Firstplus state is because of the FHBR (libor) rates. Whoever, defends this action by Banks, either knows nothing about finances or is on this site under false pretences. Whilst interest rates are at 0.5% who can support mortgage based loans at 12.6%, well beyond rates for unsecured lending, is beyond me. Also bearing in mind that the OFT know because they have reprimanded them and put a legal hold on their interest rate rises for three years (until December 2013). Support for for the obvious and the consumer is what i thought this site was for!0
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Whoever, defends this action by Banks, either knows nothing about finances or is on this site under false pretences.
Dont see anyone defending the actions of the banks in this respect.Whilst interest rates are at 0.5% who can support mortgage based loans at 12.6%, well beyond rates for unsecured lending, is beyond me.
First Plus were a lender dealing with high risk borrowers with a high rate of default. That cost is spread amongst all borrowers. That is allowed.Support for for the obvious and the consumer is what i thought this site was for!
It is. However, that doesnt mean that pointless attempts by people which could end up seeing them out of pocket should be encouraged.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
We were among many people who had a 100% clean financial record when coming across Barlcays Firstplus so please dont tell me we had credit in default !
Notes for your records:
Barlcays Firstplus have in writing advised thousands of customers whose rates have NEVER gone down that it was because of LIBOR. Now visit the Sky news site and READ - Barclays + other banks being investigated on libor rigging that affects MORTGAGES and LOANS.
As i said before, if you don't understand you don't know about finances.0 -
As i said before, if you don't understand you don't know about finances.
I understand that is your position. However, you are not listening to what is being said and you are letting your lack of understanding get the better of you.We were among many people who had a 100% clean financial record when coming across Barlcays Firstplus so please dont tell me we had credit in default !
no-one has posted you are in default. For some strange reason though you choose a lender that dealt with bottom end borrowing and high risk loans which is factored into the cost of the rate they issue. Most of your rate is due to this high risk.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
The reasons for using them in the first place is too complicated for here, but nothing to do with credit history. It was supposed to be for 3 months, but then came the PPI etc etc............. They ensured by the wording they used they could manipulate the terms to trap customers. This is my fourth mortgage in my lifetime, never have i had my terms twisted in this unpredictable way.
Some people need to understand what is actually going on with Banks and libor, before they get on their pedestal and say if you take out a bad debt loan then you can expect to be punished!
Its the same as the old age pensioners who also had faith in their local bank to give them good investment advice, they where not bad debtors, but the bank was reprimanded, fined and made to pay back the money owed plus interest. Look around you the banking industry is rife!
Go to the OFT site look up Swift, guilt of the same thing as Barclays FirstPlus, made them pay back their customers, but because we are a larger group and would make the Barclays arm bankrupt they wont do the same!.
Are you in the banking industry then (retorical)?0 -
The reasons for using them in the first place is too complicated for here, but nothing to do with credit history. It was supposed to be for 3 months, but then came the PPI etc etc............. They ensured by the wording they used they could manipulate the terms to trap customers. This is my fourth mortgage in my lifetime, never have i had my terms twisted in this unpredictable way.
Some people need to understand what is actually going on with Banks and libor, before they get on their pedestal and say if you take out a bad debt loan then you can expect to be punished!
You took out a loan with a provider that focused on high risk cases that priced it's rate on the basis of that. You may not have been but that is what you did and you are in a mortgage book that is known to be high risk and is priced as high risk.Are you in the banking industry then (retorical)?
Are you being ignorant on purpose? (rhetorical)I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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