Bank of Ireland increase differential on tracker rates

This has just been discussed on BBC Radio 4's Moneybox programme. Lots of interesting points made. Those affected may wish to try 'Listen again' or the podcast to review.

Oh, just heard the next programme is seeking Qs re Renting and Letting....

Looking on the net it seems that buy to let mortgages are not covered by the Financial Ombudsman Service or the FSA. But heres an extract from a "concordat" ( agreement) between the FSA and the Office For Fair Trading:
http://www.fsa.gov.uk/pubs/other/concordat_fsa_oft.pdf

"The OFT will consider the fairness within the meaning of the“Unfair Terms in Consumer Contracts Regulations 1999 ( of standard terms in financial services contracts where activities are governed by the Consumer Credit Act 1974, including second charge mortgage loans, buy to let mortgages, and non-mortgage personal loans (including credit cards). Further, the OFT may consider fairness under the UTCCRs in respect of financial services contracts involving the carrying on of activities within the FSA's remit where the firm concerned is not an authorised firm or an appointed representative"

I am a bit confused as in an earlier post I found some case studies where the Financial Ombudsman had ruled against a bank on a case where someone had bought a student let and been hit with an early repayment charge.

Has anyone spoken with 1. The FSA 2. The Financial Ombudsman or 3. The OFT to see who has jurisdiction over this complaint?

I Just looked at Freda Blogs comment below on 02/03/13 at 12:29.

From the radio podcast it you will get the following information which backs up my first thoughts:

It affects mortgages sold prior to 2004 before fsa regulation

The questions you need to ask yourself is was the clause made clear in the documentation? Was it in plain easily understood language?- Presumably not or we would not have so much outrage and surprise.

So now make a BOI Complaint first, which BOI will not take seriously but will invite you to take it to the FOS - and then go to FOS. Please expect a negative reply from the BOI as they will do ANYTHING to fool you into believing you have no case.

Bristol and west will have been a member of the Building Society Ombudsman Scheme and therefore it is believed that the FOS will take up the complaint whether it is a Buy to Let mortgage or not.

Any comments or help for those people affected would be great.

To help you guys further please note the important quotes here from the Financial Ombudsman Service (FOS)

"When establishing whether or not a case is within our jurisdiction,
we look first at whether the financial firm concerned is covered by our jurisdiction.

All banks and building societies are covered for complaints about events that took place from 1 December 2001, when we acquired our legal powers"

http://www.financial-ombudsman.org.uk/publications/ombudsman-news/36/issues-jurisdicition.htm

and here:

http://www.fsa.gov.uk/library/communication/pr/1999/019.shtml

So it appears that whatever complaints you would have taken to the Building Society Ombudsman Scheme, will now be dealt with by the FOS.

Ensure you use some of these references in your complaints to the FOS and BOI.

Word is the bank offered thousands for you to leave and you didn't. Do the ombudsman thing. Do you suppose that the bank that offered thousands will care about a few hundred? If you push too hard, rejecting the stick having already turned your nose up at the carrot, are you prepared to pay up and move on within a month when the bank decides to just get rid of you altogether and tells you to take your business elsewhere? Good luck, all. Fight hard, go down swinging!

Arranging to discuss this situation with my local MP
Read an article in the guardian
http://m.guardian.co.uk/money/blog/2013/mar/02/bank-ireland-rate-rise-reverse

David. 'Word is" are you employed by BoI? you don't seem to give any consideration to the actual cause!

If when offered a 'Carrot' to leave, perhaps the facts of the future consequences would have been nice at the time to be able to consider & make an informed decision.

All the press are picking up on this. BBC Radio too, so all keep pushing. We will get there.

"word is". Your comment makes me quite angry. So we should have all accepted the carrot that was offered? Why? I am on a good rate, the rate that was agreed when I took out the mortgage. The market where I live has taken a huge downturn - probably one of the worst in the country leaving us in zero equity, if not negative. The talk at the bank of England is to further reduce interest rates, yet we are expected to accept this ridiculous HUGE increase in rates??? I budget for a steady rise in rates but thus is not workable.
You are not a BofI customer, clearly.

Remember the BOI was bailed out by the Irish government.
They didn't have enough money to bail out their own banks;..........................................................................guess where they borrowed the money from.........................Her Majesties Government UK.
So you a taxpayer paid HMG to loan the Irish government to bail out the Irish banks who then come to you to increase your mortgage rates.
Effectively you have contributed to BOI; who will foreclose on you and probably bankrupt you; and you will have paid for your own personal financial destruction.
Leaves a nice taste in the mouth, doesn't it!!!??

Please could I have constructive comments on my draft letter.

This post is for constructive ideas on how to fight this.

The Financial Ombudsman Service
South Quay Plaza
183 Marsh Wall
London E14 9SR
18th January 2013

Re: Formal Complaint Bank of Ireland Mortgage account ..........3

Dear Sir,

I am writing to you to complain about a letter received from The Bank of Ireland formally the Bristol and West Building Society. The letter of 25th February 2013 states, that the interest on my mortgage which tracks the Bank of England’s base rate plus an additional percentage which is called the ‘differential’ is due to change from 1.75% to 4.49% on the 1st May 2013. It states that in certain circumstances they are allowed to do this. My complaint is that when the mortgage was sold I was told that it would track the base rate at 1.75% over base for the life of the mortgage.
Bank of Ireland has not considered the Contract Terms Act 1977 and the Unfair Terms in Consumer Contract Regulations 1999 and also the Financial Services Authority’s Statement of Practice, Fairness of Terms in Consumer Contracts (published in May 2005). This gives firms an indication of how they should avoid using terms that could be regarded as unfair. It is particularly relevant in terms to do with interest rate variation.
Bank of Ireland has not been ‘fair and reasonable’ in this case. The legal rule that a term which is particularly unusual or onerous – and would not be generally known to the customer – is only binding on the customer if the firm has brought it fairly and reasonably to their attention before the contract is made which this has not.
To be enforceable under the contract, a term must first be properly incorporated into it which this has not been.

I look forward to your response.

Yours faithfully

Lee _____