West Bromwich Building Society Tracker Margins Legal Action

West Bromwich Building Society Tracker Margins Legal Action

18:38 PM, 30th September 2013, About 11 years ago 3869

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West Bromwich Tracker Rate Mortgages Legal Action Group

West Bromwich Building Society Tracker Margins Legal Action

Are you affected by the West Brom Tracker Rate Hike?

If your mortgage account number begins with the number 8 you are highly likely to be one of the unlucky 41% of the mortgage customers of the West Bromwich building Society with a West Bromwich Mortgage Company account affected by the 1.9% increase in your tracker margin rate. However, if you arranged your mortgage directly with West Bromwich Building Society (i.e. not via a broker) or before 2006 the chances are that your account number will begin with the number 9 and you are not affected – YET!!! West Brom will give no assurances that mortgages with account numbers beginning with the number 9 will not be affected at some point in the future.

OUR INTENDED CLASS ACTION LITIGATION OVERVIEW

Tracker Rate Class Actions Updates

The reasons we started this campaign are very simple:-

1) We believe the actions of West Brom are immoral

2) We believe the actions of West Brom are unlawful, i.e. they have no legal grounds to increase their tracker rate margins

3) We have no wish to subsidise other areas of the West Bromwich Building Society business model

4) We are fearful of other lenders following suit if West Brom are allowed to get away with this

Mark Smith (Barrister-At-Law) said …

“Representative actions, where one person starts a case representing many others, who all want the answer to a legal question from a court such as ‘is this contract enforceable against me?’ but are not seeking damages. All those who sign up to the action will get the benefit of the win, but they do not have to start their own cases, as they are ‘represented’ by the lead claimant.

The only people who will definitely benefit from success in the case are those who have signed up. There will be no free rides. Any others will have to fight their own corners individually, either alone or with legal help (which will inevitably cost significantly more than the group case).”

We will NOT settle on any basis.

Landlords take legal action against West Brom Mortgage Company

We have a moral duty to do what is right for those who support the values upon which this campaign was started. Our promise to all who support these values is that we will not sell out on you at any price. We will continue to fight this injustice and we will fight any other lender who tries to follow suit.

Are you with us?

This discussion thread is now closed – we’re off to Court!

To link to the new discussion please CLICK HERE

West Bromwich Mortgage Company Tracker Margins Legal Action


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Craig Beveridge

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20:33 PM, 12th January 2014, About 11 years ago

Justin
Just had my reply from West Brom regarding how many BTL's I had at the time of taking my mortgage out with them, I have emailed you a copy. Unfortunately they are disagreeing with the advice you gave on this matter.

David Lawrenson

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21:08 PM, 12th January 2014, About 11 years ago

A thing alluded to my Mark A in a recent comment is important to be made I think in any case in court.

And that is that on the products that reverted to tracker rates, the norm was for lenders to charge a high initial interest rate for a year or two and high app fees before the tracker rate applied - which was usually after a year or two of a higher initial rate.

It would be good if this could be highlighted and if we could be told just how high the initial app fee and rate was in the case of WBBS.

For my own trackers (which were with other lenders) I know for a fact that the initial rate was high and so was the app fee. In the case of one with the C&G it was 3.5% as an application fee and a initial interest rate of 4.5% over base for 3 years before it reverted to 2% over base thereafter.

The point is - borrowers took a bet that paying high initial fees and a high interest rate for a year or two or three was a fair bet because the tracker would be low after that.

We played a bet and we won.

D Lawrenson
http://www.LettingFocus.com/Blogs

Richard Adams

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22:44 PM, 12th January 2014, About 11 years ago

Reply to the comment left by "David Lawrenson" at "12/01/2014 - 21:08":

Spot on comment. That is how it was with me.

You go the casino & put your money on green zero on roulette say. It comes up so you win at 33 to 1 or whatever it is. Walking home with your winnings the casino manager chases after you and says "we've changed the odds at which you get paid retrospectively because we are a bit skint. Give us some money back".

Ring any bells?

Ian Burton

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0:02 AM, 13th January 2014, About 11 years ago

Reply to the comment left by "Onslow Clough" at "12/01/2014 - 00:00":

Hi Onslow
My MP Edward Timpson Crewe and Nantwich seems approachable have received another letter from him today not read it yet will post comments on forum later. (been away in case anyone is wondering why they don't have mail on a sunday)

David Lawrenson

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8:07 AM, 13th January 2014, About 11 years ago

Reply to the comment left by "Richard Adams" at "12/01/2014 - 22:44":

Richard, yes your casino story is a good way of explaining what happened. I think we can all relate to that and no doubt a judge would too.

I'm not a WBBS, BOI or Skipton borrower so I'd be interested to know what the application fee and initial interest rate was for the WBBS and BOI mortgage loans.

I'd imagine there was quite a high rate before reversion to the low tracker rate.

And it would be interesting to compare this with what other rates there were available at the time, the point being to emphasise that borrowers on these tracker deals paid high initially in order to benefit from the low lifetime tracker a few years later.

In other words, the customers took a bet which involved paying high initially - and in this case won, whilst the lenders lost.

And as you almost put it, it was like the casino's goons coming after you and mugging you on the way home.

David Lawrenson
http://www.LettingFocus.com/blogs
Private Rented Sector Expertise

Norfolk n'Chance

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9:01 AM, 13th January 2014, About 11 years ago

Reply to the comment left by "David Lawrenson" at "13/01/2014 - 08:07":

Please bare in mind that not all WB loans were as you descibe. All of my WB tracker mortgages were 0.59% above base from the start......which is what attracted me to the product. Application fees were £549 per loan.....which were competitively priced.

David Lawrenson

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9:58 AM, 13th January 2014, About 11 years ago

Reply to the comment left by "Norfolk n'Chance" at "13/01/2014 - 09:01":

Maybe best not use this line of argument then.
Wonder how it was with BOI and Skipton?

Mark Alexander - Founder of Property118

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10:04 AM, 13th January 2014, About 11 years ago

Hello all

Sorry I've not been around to join in the various debates this weekend, it was my birthday yesterday so we dedicated Saturday to meeting with friends and family and on Sunday Svetlana and I headed over to the Spa at Centerparcs, Elvedon Forest for a day of being pampered.

The momentum regarding the MP's debate is good and I think the more we involve our MP's the better. I don't think that simply giving the names of MP's who have been helpful so far to Onslow's MP's will achieve that much. I suggest that at the very least, everybody contacts their MP again to explain that Onslow's MP is looking to start a debate and will be in touch. Why not send your MP the 10 point list I produced on Saturday morning and offer to follow that up with a telephone discussion or a meeting. It's human nature that people will do more to help if you can involve them on a personal level. I think the idea of just mentioning names and expecting a bunch of MP's to be motivated is highly unrealistic. They are prepared to knock on our doors and meet us face to face to get our votes. Now is the time for us to do the same thing 🙂

I also support what Norfolk & Chance has to say on the point of the product competitiveness from the outset. Many borrowers were offered free legal fees, the fixed rate looked good and the arrangement fees were very reasonable too. I think this particular angle of attack is not one to pursue as West Brom would find it very easy indeed to disprove what has been suggested. I certainly didn't pay a higher fee and a loaded rate in the hope that interest rates would plummet. I had no clue whatsoever that we would ever see a 0.5% base rate and if property values had continued to rise i would have probably refinanced the deal by now. The point is, a deal is a deal and I'm not in a position to refinance it so I'm having to live with what I signed up to and I expect West Brom to do the same.
.

Mark Alexander - Founder of Property118

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10:17 AM, 13th January 2014, About 11 years ago

Reply to the comment left by "David Lawrenson" at "13/01/2014 - 09:58":

Same thing so far as I can tell.
.

Mark Landlord

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12:06 PM, 13th January 2014, About 11 years ago

Onslow - Please add my MP Stephen Hepburn into the list of possibles for a debate.

I have called his office today and explained the situation to his secretary re your meeting with Jason McCartney MP and have asked for a meeting with Stephen Hepburn as soon as he is available.

His secretary as soon as I mentioned my name was able to bring up all the previous correspondence between me & Stephen Hepburn. They then said that they would speak to Stephen first and then call us to arrange a meeting or even just get Stephen to contact Jason directly.

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