'Market Conditions'

[HaliMac]

Just when you thought their manipulation of the truth to extract money from us couldn't get any worse... or more ridiculous!

I'm sure by now lots of you will have latched onto the latest game by the credit card providers - the now constant use of variation notices on both delinquent and non-delinquent accounts, to hike interest rates and offer up 'market conditions' as the reason to justify this?

Well, this morning I have received two letters. One from M&S Money bless 'em, who have, 'because of market conditions and your account status', actually decided to REDUCE my interest rate!

I then gingerly opened the other envelope. It was from Barclays/FirstPlus, who I have a second mortgage with. They want to INCREASE my rate for exactly the same reasons! :rolleyes: If it wasn't so bizarre it would be funny!

I've smelled a rat about this practice for a while now and have written about it on other boards (including a guideline piece on what to do when you get these letters).

Isn't it about time we took the industry on over this latest example of legalised robbery? The Regulators are staying away in droves on this one (do they ever do anything else?) and the banks are getting away with it once again.

I know that the variation notice is ostensibly a legitimate part of some agreements and one which we sign up to - but they have in my view sneakily transformed it from a occasionally-used tool to reflect their costs of doing business, into a profitable 'inertia' scam - and it's that which I think is completely out of order.

Thoughts, anyone?

[ReddhLegend]

Re: 'Market Conditions'

Their clause means they can do as they please and legally they are doing as they please.

However we are contracted in and Unfair Contract Legislation means there are limits to what can and cannot be done and FP are in breach of this.

Every compliance expert that views FP actions and clause, states the same "they are in breach".

The difficulty is regulator approach.

FOS will not judge on fairness only whether FP act within the limits of their clause
FSA - FP loans do not fall under their remit, only PPI
FLA - wet lettuce
OFT will not deal with individual complaints

I have spent the last 12 months going round this lot and it has been frustrating but a good learning curve.

We now know what we are up against and the evidence within FP accounts is damning and gives them nowhere to hide. The difficulty is that enforced change would put them out of business. They have only remained solvent by their actions and that is the part that puts them in breach of UTCCR.

It is only a matter of time now as far as I am concerned.