Skipton BS faces Legal Challenge over raising rates...

mystic_trev

HAMISH_MCTAVISH wrote: »

then if Skipton fails, any buyer of Skipton will have to honour the contract.

There aren't any buyers for failed BS's only rescue packages. They'll have to like it or lump it!

Mr.Brown_4

Why couldn't savers mount a legal challenge to interest rates being lowered to .5%?

Cleaver

Mr.Brown wrote: »

Why couldn't savers mount a legal challenge to interest rates being lowered to .5%?

Presumably they could if the savings product they had was a fixed or guaranteed rate that was subsequently lowered without due cause.

Mr.Brown_4

Cleaver wrote: »

Presumably they could if the savings product they had was a fixed or guaranteed rate that was subsequently lowered without due cause.

Yes OK point made. Now where else can I let off steam?

HAMISH_MCTAVISH

Pennywise wrote: »

Well I hope that the Skipton are allowed to use the exceptional circumstances clause for the benefit of all their other customers. If they have to make losses on the affected mortgages, .

Except it turns out they were not making losses on the existing SVR deal of 3.5% at all......

Skipton Branch access savings account, is currently paying 1.45% AER Variable including 0.50% bonus for the first six months. Skiptons Base rate tracker is paying just 1.1%. Their Direct 30 account pays just 0.5% interest, and their Pension Plus account just 1.45%.

In fact, only two of Skiptons ten or so products pay over 3%, but neither of them pay as much as the 3.5% being collected from these mortgages, and certainly none of these products justify raising the SVR to nearly 5%.

Profiteering by banks and building societies is bad for the consumer, bad for the economy, and bad for society.

This legal action is hopefully just the first of many, against any financial institution found to be breaking the terms of their agreements. The bailout was done so that they could continue to lend into the economy, spurring consumer and business spending. Not for them to pad profits.

Time they lived up to their end of the bargain.

HAMISH_MCTAVISH

mystic_trev wrote: »

There aren't any buyers for failed BS's only rescue packages. They'll have to like it or lump it!

Rescue packages that have all involved small societies being taken over by bigger ones. And the contracts will therefore have to be honoured.

Mr.Brown_4

HAMISH_MCTAVISH wrote: »

Profiteering by banks and building societies is bad for the consumer, bad for the economy, and bad for society.

Absolute and utter hypocrisy Hamish. Apparently profiteering, and sneering, at people priced out of buying a home is perfectly reasonable.

Cleaver

Mr.Brown wrote: »

Yes OK point made. Now where else can I let off steam?

Maybe you could start a Facebook group?

Mr.Brown_4

Cleaver wrote: »

Maybe you could start a Facebook group?

You over estimate my technical competence. And what would I be doing in the den of filth that is the playground of 14 year olds.. and wannabee 14 year olds.

Cleaver

Mr.Brown wrote: »

And what would I be doing in the den of filth that is the playground of 14 year olds.. and wannabee 14 year olds.

You're right actually. Imagine spending your online time in a place inhabited by immature, argumentative, chidlish people who are all hellbent on discussing pointless things that don't really matter. It doesn't bear thinking about.