MAS No.5 - Unethical Mortgage Interest Hike?

[paulagraham]

I have received a second letter from MAS No.5 in 3 months

announcing another increase in their interest rates on our mortgage.

I challenged the first increase of 0.75% as the Bank of England rates have remained static for some time now

and received a

'this is not linked to the BOE base rate or LIBOR rate'

and 'we are still competitive' type reply.

They have subsequently been taken over by the COOP which was a relief (I thought)

as now an ethical company owned the loan I expected that this would filter down to MAS No.5

and that there would be no further unfair increases.

Spoke too soon - today there has been another letter increasing the mortgage by a further 0.76%

- I will write to MAS and the COOP to see what their justification is behind this though expect a similarly weak reply.

Has anyone else challenged these increases and what response have you had?

Is it just me or is this unfair and un ethical during tough times when interest rates are at their lowest for

a company to increase their loan rates by over 1.5%?????

I want to show this company for what it really is though maybe the COOP will see sense in the error of MAS’s ways

and do the right thing by borrowers

– if anyone has any hints or tips or has had success in challenging them please let me know! Thanks - Paul

[Suetonius]

You could try giving the FOS a call and see what they say, as it hardly sounds like Treating Customers Fairly (TCF)

 

contact us

[paulagraham]

Thanks - I've written to the Coop to get their views also - will see what happens!

[Herron1234]

Hello,

 

I have just come across this thread and realised how similar it is with what is happening with my secured loan with GE Money. I have written to GE Money to ask them to justify their increase in rates; they just ignored the letter.

 

I am sure some of the more experienced on this site will be able to give us an idea of where we can take our complaints and the likelihood of actually getting somewhere?

 

I know our MPs tend not to get involved with disputes between their constituents and commercial companies, but these are financial institutions and the financial industry has been bailed out with enormous sums of our money. These two financial institutions may not have received any of this taxpayer's money, but they are part of the rotten system. Perhaps our MPs, especially those who were caught out in the expenses scandal, might want to fire a few shots at them to divert attention from their own greed? Is it worth writing to our MPs?

 

Regards,

Herron:)

[paulagraham]

Thanks - I hadn't thought of that so will compose a letter and give it a go - thanks - will post any replys as they come through!

[Bincrunched]

Hi Paulagraham,

 

I started a thread on exactly the same situation under Interest rate rise 'DUE TO MARKET FORCES'

 

I am furious

 

Can please read my thread so that we can compare notes, if wer'e in the same boat, perhaps we can share ideas on how to deal with these greedy b******s

 

Regards

[paulagraham]

Hi - have had a quick read through and we also took the orig with GMAC who sold to the Brittania and who were recently merged with the COOP (last month) - I have written to the MAS office, Brittania office and COOP office this week to ask for their reasoning behind the increase(s) and if they think it ethical under the current circumstances. I completly understand that banks have to make a profit though dont understand why MAS have increased interest rates when other lenders dont appear to have generally - twice in a couple of months is really taking it!! I will let you have copies of the replys once they come through and would like to highlight this further if only to rubbish their name - if you take any particular action let me know - would also like to track other customers to group together..... Cheers - Paul

[Bincrunched]

Hi Paul

 

Thanks for reading the thread, yes,I wonder how many of us there are out there in this position?

 

I think we need to be more specific when asking MAS no 5 any questions, otherwise they will just flannel.

Their response to me was the usual rubbish,they said that they regularly review their interest rates to "Make sure we are giving the best deals we can to our customers while remaining financially strong in difficult times.This strength is needed to make sure we can continue to offer you the best rates we can in the future."

They then go on to say that, even though their rates have gone up it is still competitive in comparison to the rest of the industry! That however is not the point.

 

I cannot find anything in the T&C's that states the interest rates are determined by other lenders rates!

 

They then refer me to sec 3 of the T&C's stating that the svr is not directly linked to the BOE rates!!!

 

I have read (several times over !)the reasons as to why and when the svr can be reviewed, however I can't find the one that says DUE TO MARKET FORCES!!!!

 

Perhaps we should ask them to highlight specifically which point they refer to when increasing the rates?

 

They then gave me 40 working days to respond before they close my complaint.

 

I duly responded by fax & post but they claim not to have received either!

 

I'm about to write again but I think it will be a waste of time!!

Regards BC

[paulagraham]

If you send me a copy of your latest letter(s) I will use them as the basis for my next reply from them (and/or the Britannia/COOP). I wrote to MAS after the first hike in July and must have got the same fob off that you recieved - I will mirror your questioning process in my replys to them.. I doubt it will change the world but I'm more than willing to be a thorn in their side as they are in mine now! Keep in touch. Cheers - Paul

[Bincrunched]

Hi Paul

 

Received another letter from our mutual friends today, well not an informative letter but more of a threatening one!

Because I have not paid them the full amount together, instead I have chosen to make individual payments of the extra hikes in the rates, along with a fax on every payment, informing them that I disagree with the rises and that the extra payments are on 'account only' until our dispute is resolved satisfactorily!

 

This is just in case they come back and claim that I made the payments therefore I agreed to the rise in interest rates!!! I've become very suspicious and cynical!

 

What they are doing is unfair but I'm not convinced that the FOS will do much to help however I'm willing to try all avenues as I'm so sick of these institutions taking us for idiots!

 

Keep well BC

[SMEGFISH]

Hi like most of you i am fed up with the likes of MAS raising interest rates both on my tracker and normal mortgage without clear explanation. I rang the FSR financial services regulator today who said that all parties should send in phto copies of their contracts with a covering letter for their scrutiny. They also suggested writing a complaint letter to the company demanding a thorough expalnation of the reasons for inceases and then to take action through the financial ombudsman.

I was wondering if anyone has the experience to action a group complaint.

My tracker mortgage which should have benefitted me during the low rate period is noew no cheaper than a normal mortgage ... heads they win, tales they win. The more people who move as one the better it would be....Id be interesyted in your thoughts. Dave of Hackney

[Bincrunched]

Hi Smegfish,

Iv'e been writing letters of complaint for at least 18 months now! the FOS have ignored me! MA5 have ignored me! I'm at the end of my tether! I for one would be happy to join forces with like minded people who have had enough of being ripped off! I started the thread 'Mortgage interest rises due to market forces'

Iv'e been complaining ever since!! Today I received a threatening letter quoting 'The Law of Property Act' and in the same post, different letter, they are apparantly now dealing with my complaint at level 2! whatever that means??

I want them to take me on! i'm fed up with being bullied by these companies and their unfair contracts!

i'm there with you!

[SMEGFISH]

My Fiance is today along with legal friends drafting a letter which will demand a complete expalnation for the rate hikes. At a time when a lot of companies are declaring soaring profits due to low interest costs it seems not inlikely that these rate rises are simply emplaced to raise profit margins. It will be interesting to have the comany books scrutinised by auditors to see where these 20% inceases in overheads have come from and how they align with company profits.

We will have these things put to MAS this month and will not let them off until we get a complete explanation.

In the mean time a petition of group action would probably help.

Something saying that we object to the rises which we believe that no reasobale explanation is ever given and that many people never recieve replies to letters of complaint and that unless we get a full honest explanation we will take a joint action through the obudsman. I notice today the Halifax has been repremaned and ordedered to pay back £500m of interest to people who had been misinformed. What do other consumers think about a PETITION of action to the Ombudsman. It should be easy online,,, Dave

[louise020171]

I too am not happy with MAS NO 5. A few months ago i received a couple of letters telling me that

they were going to put my mortgage up by £110 which is mad as no interest rate has happened. I contacted them and asked them why and they say they look into rates and can change them when they want to even if nothing else has changed. I am so unhappy with them and feel its unfair this happens. Would love your comments and what other people are doing about it.

many thanks

karen x:-x

[SiliquaeSid]

Reading other threads related to MAS No.5 seems to indicate they are a right bunch of something VERY nasty. I'm in the same boat, ridiculous rate rises obviously in an attempt to force defaults (which would be an illegal activity - not that it would bother MAS No.5 any)!!

 

I was wondering if anyone has made any progress with this matter?

[louise020171]

My mortgage has now gone up again another £80. Without the interest rate going up. House now up for sale had enough of paying a mortgage.

Got no choice. They do not want to help as now been given council house so paying rent and mortgage. Asked to reduce until house sold but they are not interested to help. X

[Bincrunched]

We need to look more closely at their contract! We have asked for them to prove the reason for their extra hike but so far we've had no response!

But we are definitely not going to let this drop! I agree that a petition should be set up and we need to

Look into the best approach!!

By the way, they are not the only Lender to do this!

I'm furious!

[louise020171]

I seem to be hitting my head against a brick wall, yes a few other banks put theirs up. But why arnt they there for people that need a little bit of help when things go wrong. Other banks are there to help and do.

[Bincrunched]

The banks are not interested in helping the public! They are just greedy and care only about increasing their profit margins! That is ALL banks as far as I can see!

Try not to get too stressed!

[SiliquaeSid]

I WON'T sell the house, I grew up in it so too many memories for me.

 

I'm NOT going to let these parasites get away with this sort of unethical behaviour. Fair enough, they loaned me the money, but that us NO excuse for them to behave the way they do .

 

A short sharps shock is in order.

 

BTW as GMAC RFC sold them my mortgage I technically don't have a contract with MAS No.5 as I never signed anything to that effect. Maybe some mileage could be got out of that approach?

 

I'm willing to contribute to have an expert look at any "contract" they supply.

[Bincrunched]

Hiya, I completely understand and share your sentiments and you're absolutely correct about focusing on their contracts! However I still think the first port of call is to force them to provide their evidence and justification as to WHY they hiked up the interest rate in the first place!

We may need to enforce this via the courts as I don't believe the Ombudsmen are of any use in this matter!

I intend to investigate this procedure further!

I still feel that the more people behind us will strengthen our case!

[sha1091]

hi

Same things has happened to me my mortgage has increased from 3.25% to 6.75%am really confused to what I should do!!!!

 

[Bincrunched]

Hi Shah1091

We have again written to MA5 requesting justification and proof as to why they have seen fit to increase their interest rates!

I fear they will again refer us to the FSA who we know will not get involved and once more purposefully MA5 will ignore our request, fobbing us off with their usual rubbish!

However we have warned them that we will take it further this time!!

We do believe that the more voices we have together the better our chances! So once we have received their response I will post again and proceed as necessar!!

It's useful that the banks are being reported for their misdemeanors currently!! Shows them up for the thieving so & so's they are!!

Regards

[sha1091]

Hi Shah1091

We have again written to MA5 requesting justification and proof as to why they have seen fit to increase their interest rates!

I fear they will again refer us to the FSA who we know will not get involved and once more purposefully MA5 will ignore our request, fobbing us off with their usual rubbish!

However we have warned them that we will take it further this time!!

We do believe that the more voices we have together the better our chances! So once we have received their response I will post again and proceed as necessar!!

It's useful that the banks are being reported for their misdemeanors currently!! Shows them up for the thieving so & so's they are!!

Regards

 

*****************************************************

 

thank you Bincrunched i hope we can nail them if you need any more information from me i.e my loan detials please advice i seriouly think we have a case

[Bincrunched]

Hi Shah1091

We have to await their response and tread very carefully, it's important that we get the information we've requested before we take the next step! I've a feeling we may have to force it out of them though.

As I said we'll keep you posted, this is not just unique to MA5, other lenders have done this too! But if we tackle this lot it may assist in dealing with the other unscrupulous lenders!!