MSE News: Bank of Ireland mortgage costs soar for thousands – but customers can fight

Thrugelmir

magpiecottage wrote: »

The business - ask the regulators.

Who generates the profit for the business in order that it can pay it's bills?

Randvegeta

Thrugelmir wrote: »

Who generates the profit for the business in order that it can pay it's bills?

We get it. You are saying that customers generate the profit/revenues for the businesesses so in your logic it is the customer that pays.

The problem with this logic is that the business cannot force customers to pay.

Some customers have an out. The customers can change banks and get a different mortgage. If BOI raise there rates too much then they will be un-competitive and ultimately it will be the investors and creditors who pay.

I also suspect that there is a limit as to how much BOI can raise the interest rate to. Therefore any additional costs cannot be passed onto those customers.

Further more, BOI is likely going to spend more than £550 a pop given they need to spend man hours to deal with the inqueries. If they have lots and lots of complaints, do you really think they will risk incurring mass charges on the hopes that they can recover the costs by upping interest rates on their already overstretched client base? Not to mention someone can complain AND find a new mortgage which will be a double hit for BOI.

Finally, if BOI's interest rate rises to the point it is unaffordable to the clients, the client could always get 'out' by selling the property. If the property has negative equity then the client can walk away and leave the problem to the bank!

So I would disagree that the costs are borne by the customers. At least, to a degree.

simon_the_saver

Why a new thread? There's already a discussion on this topic...