MSE News: Skipton faces legal challenge over mortgage rate hike

JPS29

Further strengthening the case for govt to step in, as with NR etc

sarahbennett

Dan_1976 wrote: »

You also have to look at a bigger picture, if Skipton went under 1000's of jobs could go. They own Connells, or did and Sequence and a few other companies. The effect of a society of its size (I think its top 5 if not deffo top 10) could be massive.

I think it is absolutely ridiculous for anyone to expect those with mortgages to foot the bill when the top executives are still getting millions in salaries/benefits, and especially considering the disastrous decision they made to bail out another building society, the fact that they made an extra £40million last year selling call credit, and in their own words have "no problems with liquidity", this not is about saving jobs for the many who work at the Society on lower pay about whom the top executives could not care less, this is about not making as much profit from SVR mortgage customers as they'd have liked in the context of low base rates (remember if they have any problems with cash they could always ask SVR customers to pay in more capital and reduce the term of their mortgage contracts, I'd be perfectly happy with that). What they are doing instead is an insult and outrage, and I find it very hard to believe that a Society that can give its average departing CEO a pension of 2.3 million plus is really in any position to bleat poverty.

Furthermore, there's nothing wrong with the profitability of a rate of 3.5%, I'd be delighted if I could get that much on my savings.

Dan_1976

I am not sure about the skipton, I have never looked at the accounts, however at the building society I worked for between 1999-2004 I was suprised how little the Chairman earned. 2.4mill pension is nothing compared to the larger banks.

BS's have a better spend ratio than many banks are far more focused on returning the profits to the member.

We will never agree on this so I am ducking out. I dont agree with what they are doing but I can see why.

starsailor123uk

Skipton actions show that building societies are failing their customers by trying to be banks

BS raison d'etre was to link borrowers and lenders together and because they were more target could offer better rates for both ends as they kept their margin down and work for all its customers in a cooperative.

However demutualisation and other factor such as NW pseudo-demutualisation by disenfranchising its new customers since 1988.

Building societies no loner exist in a true sense.

That said it wouls be interesting if someone took them to court as the case would rest on the definition of exceptional conditions and that would be interesting

Dan_1976

Last comment honest!

Building society's are no longer what they once were due to the greedy back stabbing public. Ask anybody who worked for Abbey when they demutualised, those lovely people were queing up for share certificates and when they were late the staff were spat at, swore at and alsorts.

The general public want and wanted the little building society to offer the same services as a bank but with the same old nice friendly attitude of a BS.

The real Building Society died years ago. Could you really imagine in 2010, people clubbing together to build a house and taking it in turns to have a house?!?! I dont think so, we want it all now! And we are paying for that attitude with this mess we and the banks/bs' are in.

I am not saying its all our fault, but we are part to blame. The Skipton are looking after its self and its interests as would the borrowers and savers is the shoe was on the other foot.

dasilva_2

Dan_1976 wrote: »

Last comment honest!


The Skipton are looking after its self and its interests as would the borrowers and savers is the shoe was on the other foot.

Bit of a contradiction there. The Skipton is the borrowers and savers as it is a mutual society. I would agree if you said the Skipton management were looking after themselves rather then their employers(ie. members)
The Skipton has chosen to act like a bank, lending to commercial enterprises, going on acquisition trails buying and selling different companies. The members don't seem to have received any of the benefits of this and when things seemed to be going ok the only people who benefited were the management. Now it seems some of those decisions were disastorous the management expect the members to take the hit, while that same management continue with their considerable remuneration, which even if it is less than a Bank doesn't make it right. The board could always leave and take a job with a bank if they want. The members wouldn't miss them as their decision making doesn't appear to be commercially fantastic.

Dan_1976

I get what your saying. But right or wrong they still have to sort the problems out they have.

I would imagine that if they cleared out the board and started again, the new mob would not do much different.

Gorgeous_George

Dan_1976 is a liar.

GG

Dan_1976

Gorgeous_George wrote: »

Dan_1976 is a liar.

GG

George you are an irritating so and so but I dont shout about it, so what I have done now?

Dan_1976

I am not saying this is right and I hope the Skipton lose any legal action. I can see why they are doing it and its in the contracts. If they are illigal then Skipton should be brought to task, if not then its tough.