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    • Thank you for this. The first thing to be say is that this means that you are winning. It is pretty well unheard of in my experience for the bank to give way and finally return the money. The fact that they have done this under the threat of a judgement for breach of statutory duty indicates even more that they are worried about their position. Nowhere have they indicated that they have complied with the requirements of the Proceeds of Crime Act and inform the National crime agency. I don't believe they have and this is a very serious breach of statutory duty. Not only that it is a very serious breach of the FCA BCOBS regulations in that they are required to treat you fairly. Treating you fairly in this case means that they must comply with the rest of their statutory duties. It appears that they really haven't done this at all and that they have acted in an arbitrary way in disregard of the law and that they are hoping to get away with it. I find myself wondering how many other hundreds of people have been treated in exactly the same way – and you are probably the first ever to have stood up to them and to get them worried. I think I've already indicated that a press contact of mine in the Sunday Times would be very interested in this story. He has already run stories about the very poor standards applied by banks when deciding that their customers are involved in some fraudulent behaviour. The first thing to say about the letter which you have received is that they are trying to apply conditions to releasing your own money. It's your money and there should be no conditions and my suggestion is that you object to this. Secondly, not only are they threatening to continue to withhold your own money – but also they are saying that if they release it to you you will simply have the net figure without any kind of interest or compensation. It's clear that while they have had your money, they have invested it and earn money on it. They have probably been lending it out at between 16% and 20% and although the usual rate of interest is 8%, it seems to me that justice can only be served by repaying you your money plus the commercial rate of interest – at a compound rate. Normally the 8% is calculated at simple. Thirdly, they are not offering to pay you any compensation and clearly they are hoping to get away with it without any kind of sanction or not even a slap on the wrist.   Fourthly, they had the nerve to impose a seven day deadline. Don't worry about their deadline. It's a load of huff and puff. This is all part of their bluff game designed to intimidate you. At the end of seven days – what? Are they then going to insist on going to court? You can be certain that these people do not want to go to court. In fact they probably wish they had never started. Finally, they want the matter to be kept confidential – and I can't say I blame them. I would be ashamed if people knew that I had treated somebody else in this way and I'm sure they are worried about reputational damage. I'm also sure that there are extremely worried about what will happen if you get a judgement against them for breach of statutory duty. It will have to be reported to the FCA. It will have to be reported to the NCA. And of course it should be reported to the newspapers because people need to know what is going on. If you want, you can simply accept their proposal – get your money back, given confidentiality – and that's the end of the matter. However, you have no idea how this will impact on your record in the future. I imagine that they will bar you from ever opening an account with them again. – But at least you will have your money and you can get on with your life. However, if you want you can stand your ground and make it clear to them that you are going to be mucked around and treated like this and that you are prepared to go to court if they won't make a proper offer. I understand that you need to pay a court fee of about £350 in the next seven days. I expect that the bank is making this offer now hoping to dissuade you from spending any more money and hoping that you will back down. If you have the money to proceed then I would suggest very strongly that it will be a very serious sign of strength that you tell the bank that you're not interested in that you are paying the fee for the next stage of the court process. If the bank knows that you've called their bluff on this and that you have been prepared to invest further money in moving this legal action forward, then they will start to reflect and I can perfectly well imagine that they will make you another more interesting offer – once again on conditions of confidentiality. Without seeing the offer, I'm suggesting already that you will probably be best off turning it down. In any event, I would remind you going back several months that I already predicted that the bank would make you confidential offer – and that has happened. I'm not saying that I'm always going to be right here – but I think that now basically the bank have pretty well admitted that they need to pay you your money, there is no chance of you losing it. You will get your money and it really is just a question of how much else you will get in addition. If you'd like to continue then let me know and I will suggest a draft response to them.
    • The cost of living in Britain over a person's lifetime is over £1.5m, new findings have claimed as the nation feels the squeeze amid soaring energy costs and dismal interest rates on cash savings.View the full article
    • Mortgage approvals for house purchases fell to 67,200 in October, according to the Bank of England’s (BoE) latest figuresView the full article
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Big inflation coming 2017 – stop borrowing, start repaying. Urgent!


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UK inflation will quadruple to about 4% in the second half of next year and cut disposable income, a leading think tank has forecast.

 

The rise in prices will "accelerate rapidly" during 2017 as the fall in sterling is passed on to consumers, according to the National Institute for Economic and Social Research (NIESR).

 

The revised figure is sharply higher than the 3% it forecast in August.

 

The economy also faces "significant risks" that could restrict growth.

http://www.bbc.com/news/business-37838087

 

Most loan agreements are tied to variable interest rates. This is certainly true of mortgages, credit cards and overdraft.

 

A dramatic rise in inflation is forecast for the second half of 2017 and will likely continue right through until 2020.

 

If you have an agreement with a variable interest rate then the cost of your loan and therefore the size of your required repayments are going to increase dramatically.

 

If you have calculated your ability to repay based on the record low interest rates which we have experienced over the past few years, then you better sit down and start having a serious think about your position.

 

The good days are all coming to an end.

Next year, you will receive notification from your lenders that they are putting up the interest rates and that your payments will be increased from the next 30 or so days time.

 

This sudden increase in your loan payment outgoings will have a dramatic effect on your disposable income for paying for things such as food, clothes, heating, lighting et cetera for you and your children.

 

If you want to protect yourself then the only solution is to start making accelerated payments now so that you can reduce or get rid of your liability before June/July/August next year and also to stop borrowing.

 

The situation is fairly simple.

Would you rather be paying your hard earned cash to your bank or some disreputable payday lender?

Or would you rather be spending it on yourself and things which make a difference to you and your family?

 

 

 

Stop borrowing.

Next year, you may not be able to afford to pay it back.

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This is also going to royally screw all students who have relied on student finance as interest charged is RPI based . A typical student will come out with say 50K of debt

 

If they start eating 22 K they will repay 90 a year BUT if Inflation hits 4% there loan will attract 4% interest which is £2000

 

If they earn 41K they will pay £1800 back but will be charged 7% interest which is £3500 . In effect most students will be trapped in a cycle of debt for 30 years - no doubt the government will use this to alter the terms of repayments so that students will have to pay significantly more back

Any opinion I give is from personal experience .

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Wise advise. Over the last few years there has been an increase in people taking up credit, encouraged by Banks and government. When the economy starts to suffer, then the Banks will look to secure their positions by increasing rates.

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Thing is that people live well beyond their means.

I see some colleagues driving brand new £50k+ cars and moaning about having debts.

In my days you only bought what you can afford in cash, apart from your home.

Nowadays we're encouraged to maximise our credit and be in debt for the rest of our life.

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Thing is that people live well beyond their means.

I see some colleagues driving brand new £50k+ cars and moaning about having debts.

In my days you only bought what you can afford in cash, apart from your home.

Nowadays we're encouraged to maximise our credit and be in debt for the rest of our life.

And that is what our economy and growth has been built on.

Any opinion I give is from personal experience .

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It would be nice if people were to heed this message this time round. Sadly there will still be families who will either miss out their CT or mortgage payment or take out PDLs or even resort to Brighthouse ! over Christmas/January because they give into their children for expensive toys/technology.

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Uploading documents to CAG ** Instructions **

 

Looking for a draft letter? Use the CAG Library

Dealing with Customer Service Departments? - read the CAG Guide first

 

1: Making a PPI claim ? - Q & A's and spreadsheets for single premium policy - HERE

2: Take back control of your finances - Debt Diaries

3: Feel Bullied by Creditors or Debt Collectors? Read Here

4: Staying Calm About Debt  Read Here

5: Forum rules - These have been updated - Please Read

 

 

BCOBS

 

2: Does your Bank play fair - You can force your Bank to play Fair with you

3: Banking Conduct of Business Regulations - The Hidden Rules

4: BCOBS and Unfair Treatment - Common Examples of Banks Behaving Badly

5: Fair Treatment for Credit Card Holders and Borrowers - COBS

 

Advice & opinions given by citizenb are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional.

 

PLEASE DO NOT ASK ME TO GIVE ADVICE BY PM - IF YOU PROVIDE A LINK TO YOUR THREAD THEN I WILL BE HAPPY TO OFFER ADVICE THERE:D

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Yesterday a colleague was moaning that he hasn't got money until payday (20th nov), yet he used his cc to by a £500 console to his 5 year old son for Christmas.

My reaction: What you gonna buy him when he turns 18? A house???

 

He also mentioned that he is bored with his 18 month old car on finance and looking to get a BMW which would work out "only" £450 a month.

Doesn't make any sense to me...

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And now this BBC article http://www.bbc.com/news/uk-37873825 says the same thing

 

"But with interest rates so low at the moment, it's easy to think that high levels of debt are manageable.

"On Thursday, Mark Carney claimed inflation will rise to 2.7% next year.

"More inflation means higher interest rates, which we'll all have to pay on our mortgages, loans and credit cards.

"If you're in debt, particularly if you have a variable mortgage, it's time to prepare by taking control of your finances."

 

 

– except that you heard it on the CAG first.
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And friends said i was silly to fix my mortgage for 5 years in may

 

Glad i did now :-)

 

Yes, it was a very good move. Well done. Your friends will regret that they didn't do it themselves.

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If interest rates go up and I am sure they will what does this mean for the economy and the building trade in particular

 

Will it just lead to a spiral of inflation and interest rate hikes that we saw under Thatcher followed by mass unemployment. For all her efforts to reduce the role of the state she was not able to reduce welfare spending because of all the people she threw on the scrapheap

Any opinion I give is from personal experience .

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  • 1 month later...

I've been saving up for a good few years now, I almost had enough to afford the down payment on a house, but now with this inflation... looks like we'll still be renting for a while :( I'm quite clueless in this area though, not sure how to figure out what's best to do. Is it likely at all that the sterling will go up again within the next few years, or should I just accept the inflation and take out a mortgage?

 

I can't help feeling I was just born a few years too late!

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I've been saving up for a good few years now, I almost had enough to afford the down payment on a house, but now with this inflation... looks like we'll still be renting for a while :( I'm quite clueless in this area though, not sure how to figure out what's best to do. Is it likely at all that the sterling will go up again within the next few years, or should I just accept the inflation and take out a mortgage?

 

I can't help feeling I was just born a few years too late!

 

Property prices are a reflection of not enough supply compared to demand. UK population will grow by about 2 million within the next 5 years, so even more demand. Prices will keep increasing until there is enough new properties to cater for the demand. This is very unlikely. I can't see there being a price crash due to economics. If the UK economy is affected, causing repossessions to happen, then this just means those with cash getting cheaper properties to make money from by selling on or renting out.

 

If you are in stable employment and can afford to get on the property ladder, then it is worth doing. When a flat sold in my road for £155k about 4 years ago, i thought the buyers were mad. But now the same flat in good condition would sell for £200k. There is a new development of similar sized new build flats for retired people not to far away selling for over £300k. I can't see any reduction in property prices and rental prices increasing. If people buying buy to let properties are paying more, then this will be reflected in the rents they want to charge.

 

The UK is not in a unique situation. They have the same problems in Australia, New Zealand and US. You would have to be on a fantastic salary to live anywhere near Sydney.

 

If you speak languages, have qualifications/skills you are better living somewhere else, if you can get a good job.

We could do with some help from you.

PLEASE HELP US TO KEEP THIS SITE RUNNING EVERY POUND DONATED WILL HELP US TO KEEP HELPING OTHERS

 

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Something to think about is , if interest rates rose by 1 or 2 % could you afford the increased repayments, It really isn't that many years ago that interest rates were at 15 % (ok 25 years but doesn't seem that long). Of course no one can force what will happen and remember that while the Euro may or may not collapse it is the value of the £ against other major currencies that matters. Oil will increase in price next year due to the cap put in place by OPEC , well thats if the world economy carries on as it is now , if the $ gets stronger , oil goes up even more to us which will push inflation up, most analysts believe inflation will increase next year anyway.

 

I'm sorry but no crystal ball here

Any opinion I give is from personal experience .

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Property prices are a reflection of not enough supply compared to demand. UK population will grow by about 2 million within the next 5 years, so even more demand. Prices will keep increasing until there is enough new properties to cater for the demand. This is very unlikely. I can't see there being a price crash due to economics. If the UK economy is affected, causing repossessions to happen, then this just means those with cash getting cheaper properties to make money from by selling on or renting out.

 

If you are in stable employment and can afford to get on the property ladder, then it is worth doing. When a flat sold in my road for £155k about 4 years ago, i thought the buyers were mad. But now the same flat in good condition would sell for £200k. There is a new development of similar sized new build flats for retired people not to far away selling for over £300k. I can't see any reduction in property prices and rental prices increasing. If people buying buy to let properties are paying more, then this will be reflected in the rents they want to charge.

 

The UK is not in a unique situation. They have the same problems in Australia, New Zealand and US. You would have to be on a fantastic salary to live anywhere near Sydney.

 

If you speak languages, have qualifications/skills you are better living somewhere else, if you can get a good job.

 

 

I am actually thinking about moving abroad - the company I work for has an office in Israel, I speak the language... but all my savings are in sterling! Before the Brexit vote, I almost had enough money. Now, when I convert it to shekel, I get 20% less.

 

 

I have very little understanding of the market at all, economics are NOT my strong point. Or even a point at all. So should I convert it and buy something smaller, or keep saving and risk my savings being worth even less... I don't know!

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I've been saving up for a good few years now, I almost had enough to afford the down payment on a house, but now with this inflation... looks like we'll still be renting for a while :( I'm quite clueless in this area though, not sure how to figure out what's best to do. Is it likely at all that the sterling will go up again within the next few years, or should I just accept the inflation and take out a mortgage?

 

I can't help feeling I was just born a few years too late!

 

4 years ago I had split up with my ex, And was paying half a small mortgage which i still pay to this day

 

I was renting a house and it was costing me £650 a month in rent

 

I decided that i had to buy another house as i hate renting, So i worked 60-80 hours a week until i have my 10% deposit, Couldn't do help to buy as i owned another house

 

I bought this house 2.5 years ago on an 18 year mortgage, And i still pay £20 a month less than i paid in rent back then, And now fixed for 5 years

 

Rents are climbing rapidly these days, It is nearly always better to own than to rent

 

I have a great final salary pension, And i really didn't want to retire and have to pay out big rent from it

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4 years ago I had split up with my ex was paying half a small mortgage which i still pay to this day

 

I was renting a house and it was costing me £650 a month in rent

 

I decided that i had to buy another house as i hate renting, So i worked 60-80 hours a week until i have my 10% deposit, Couldn't do help to buy as i owned another house

 

I bought this house 2.5 years ago on an 18 year mortgage, And i still pay £20 a month less than i paid in rent back then, And now fixed for 5 years

 

Rents are climbing rapidly these days, It is nearly always better to own than to rent

 

 

True - thanks for this. The problem is that I don't quite have enough yet, because of the fall of the sterling. Buying on paper is quite a popular option, as it's quite a bit cheaper, but it also means that I would have to pay rent as well as mortgage until it's built. Part of me is saying - go for it, you'll figure out where the money is coming from - and part of me want to hold back, waiting until I have a bit more saved up.

 

 

On the bright side, I got a raise today!! :) I'm celebrating!!!

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I am actually thinking about moving abroad - the company I work for has an office in Israel, I speak the language... but all my savings are in sterling! Before the Brexit vote, I almost had enough money. Now, when I convert it to shekel, I get 20% less.

 

 

I have very little understanding of the market at all, economics are NOT my strong point. Or even a point at all. So should I convert it and buy something smaller, or keep saving and risk my savings being worth even less... I don't know!

 

Move to Israel where it is cheaper to rent. If you can get a good salary, you might save more. You can keep a UK savings account, if you use a relatives address for bank record/communication purposes. When Sterling picks up in value you can transfer money to Israel if you wished and to buy a property there.

 

Worth looking into.

 

The UK is going to become a very overcrowded country ( more than now), as immigration controls after Brexit are unlikely to reduce net migration numbers. Brexit might deal with EU migration, but instead UK will offer visas to people from outside the EU. Building of new houses will never keep up with the demand there is for places to live. Therefore prices will keep increasing, as will the rent.

We could do with some help from you.

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When Sterling picks up in value you can transfer money to Israel if you wished and to buy a property there.

Any idea how long that will be?

 

 

Most of my savings are in Santandar's 123 so I'm getting good interest, but I don't want to have to rent for a few years before buying. As I mentioned, buying on paper is an option - but then I'd still be paying rent... why can't life be simple?!!!

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Any idea how long that will be?

 

 

Most of my savings are in Santandar's 123 so I'm getting good interest, but I don't want to have to rent for a few years before buying. As I mentioned, buying on paper is an option - but then I'd still be paying rent... why can't life be simple?!!!

 

No expert and i think experts would find it difficult to predict, given the uncertain circumstances.

 

But i think Sterling will gradually increase over the next year against both Euro and US Dollar. I can't see the current value of Sterling being maintained for too long. You have elections in some EU countries, EU mainland Banks weaker than most UK Banks and UK economy is outperforming many. Investors will therefore look to the UK and i can see Sterling rise by at least 10% against other currencies.

 

If you search online you will find predictions on currency levels over the next 12 months.

We could do with some help from you.

PLEASE HELP US TO KEEP THIS SITE RUNNING EVERY POUND DONATED WILL HELP US TO KEEP HELPING OTHERS

 

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No expert and i think experts would find it difficult to predict, given the uncertain circumstances.

 

But i think Sterling will gradually increase over the next year against both Euro and US Dollar. I can't see the current value of Sterling being maintained for too long. You have elections in some EU countries, EU mainland Banks weaker than most UK Banks and UK economy is outperforming many. Investors will therefore look to the UK and i can see Sterling rise by at least 10% against other currencies.

 

If you search online you will find predictions on currency levels over the next 12 months.

 

 

 

Ok, thanks for your advice

 

 

Your sage words have filled me with confidence! :)

 

 

 

 

(and I love your elephant, she's hypnotic!)

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  • 1 month later...
And friends said i was silly to fix my mortgage for 5 years in may

 

Glad i did now :-)

Colin, IMHO your absolutly on the button. If you can borrow on the present low rates, are able to get fixed rates and inflation takes off you would be quids in. The winners at the momement are those with fixed rate low interest loans and the losers are the carefull one's with loads of savings and earning next to nowt interest rates waiting whilst inflation erodes the buying power of their cash. Or worse still, they end up in a care home. House and cash gone.

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