West Bromwich Building Society Tracker Margins Legal Action

Reply to the comment left by "Bob Nunn" at "23/01/2014 - 16:53":

This is not BTL mortgage related though 🙁
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Dear all,

An explanation of Early Day Motions.

EDMs are technically known as "Parliamentary Debates for which no time has been allocated". So they are merely a statement of intent by MPs, the more sign it the more MPs are concerned about the subject.

Also EDMs are read by Civil Servants, Ministers and Journalists. This creates a 'buzz' around a subject, indeed we have had a number of media outlets call us today to discuss this issue. Also this EDM is part of a wider campaign that will include debates, questions and a media campaign.

They appear in the official record "Hansard" and remain open for the full term so that MPs can sign them at any time (not just the week or month they were tabled).

To those that have been critical of EDMs I would make this point: you wouldn't run a campaign like this only using twitter on its own but it is part of it. Similarly EDMs don't change the world but they are an important part of a much more broad based campaign.

Hope this helps,

Andre Walker
Senior Parliamentary Assistant
House of Commons
SW1A 0AA

Andre, thanks for taking the time to comment. For the benefit of the members of this forum are you able to reiterate what we discussed about getting 20+ MP's to apply for a 90 minute debate and how the "random draw" selection process work please?
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Twitter people, "Tweeps", please re-tweet these tweets ....

@JasonMcCartney in the last 24 hours campaign members @property118 have lobbied over 100 MP's to support EDM 976 - http://t.co/KZTDLElDJb

— Mark Alexander (@iAmALandlord) January 23, 2014

@MPDavidMorris - in the last 24 hours campaign members @property118 have lobbied over 100 MP's to support EDM 976 - http://t.co/KZTDLElDJb

— Mark Alexander (@iAmALandlord) January 23, 2014

Reply to the comment left by "Bob Nunn" at "23/01/2014 - 16:53":

Whilst accepting that FCA’s criticism of Kensington relates to the latter’s treatment of a section of its residential mortgage holders, I still find it difficult to comprehend how financial conduct can apply merely to a product rather than to a financial institution. If a financial practice is unfair then the regulatory body has existing powers to force the financial institution to comply with best practice and to conduct itself in a fair manner.

The FOS certainly espouses this view. I suspect that the FCA will too with regard to WB (and BoI)… eventually, once it is forced to act, hopefully by Parliament.

Reply to the comment left by "Paul Eastabrook" at "23/01/2014 - 18:08":

It is my understanding that the FCA regulates 'promotional material' for financial products - regardless of type. Statements on the West Brom website which are designed to reassure customers and consequently sell more mortgages undoubtedly for-fills the category of 'promotional material'. One would therefore expect the FCA to act when the West Brom make clearly misleading statements such as… "“Tracker mortgages give you the certainty of knowing that the rate you pay will move in line with Bank Base Rates”.

LEGAL ACTION UPDATE:

We have had further discussions with our QC today as to proposed tactics and we have to make some minor changes to the documentation we have prepared, so we will not be sending out the email tomorrow as planned. We expect that it will go out either on Monday or Tuesday next week.

We are sorry for the continuing delays but we want to make sure we get everything right, rather than rushing things. It is important that we give you the best opportunity possible in overturning WB's rate increase, so please bear with us for a few more days.

Thanks

Justin

Reply to the comment left by "Deceived by West Brom " at "23/01/2014 - 18:34":

I completely agree with this point and so should the FCA based on what they say on their website, see >>> http://www.fca.org.uk/firms/being-regulated/financial-promotions

The problem is that they continually use the word consumers. There is case law to demonstrate that a landlord can be a consumer (OFT vs Foxtons) but there is no clarity on the level at which a landlord ceases to be a consumer. The WBBS are saying it is three properties, we would argue that it is when the majority of a persons income is derived from rental profits. This needs to be tested in the supreme courts or to have legislation written at some point as it affects all landlords rights in respect of Unfair Terms in Consumer Contract Regulation "UTTCR". Without clarification over whether UTTCR landlords are at risk every time they buy mortgages, insurance or sign any other form of contract including contracts with letting agents, estate agents etc. This is likely to be the basis of our next campaign.
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Maybe i am naive in this - but i fail to see why Everyone who buys anything is not classed as a consumer - if the law starts to split hairs, about what constitutes a consumer, whether it be age, experience, income or whatever, this will be the beginning of a slippery slope. Surely ethical suppliers of goods and services (and i do not include WB in this group) should aim to provide goods which are "fit for purpose" and which will do no harm to anyone who buys them. Are consumers who consistently use professionals to advise them on financial products naive ? Or sensible ? Is it the customer or the advisor who is the consumer in that case ? A minefield of definition ... WB's allegedly "sophisticated consumers" paid well with high fees for the privilege of being so classified. They are now being asked to pay twice. It will be a sad day if the law discriminates against all consumers if judges separate the sophisticated from the naive consumer.

Reply to the comment left by "Mark Alexander" at "24/01/2014 - 08:00":

Hi Mark, Is this the argument we will be presenting with regard to professional landlords? If so. at the moment most of my income comes from rents but when the increased rates take effect it won't.... does this not create some kind of paradox?