5.
Other Sites
5.3 Financial Services Ombudsman
A number of
building societies and banks introduced a "standard variable
rate" for mortgages, and then later marketed a new "standard
variable rate" to attract new mortgage customers. The new rate
was of course lower than that charged to existing customers
demonstrating that loyalty does not pay!
However, the
Financial Services Ombudsman ruled that this practice was unfair
and after this ruling the Nationwide Building Society
immediately published in the press on 22 February 2002 that in
the interest of fairness to all borrowers, the lower rate would
be applied to all accounts and refunds would be made
automatically by the society.
Perhaps, this
scenario illustrates the difference between Nationwide, a
building society putting its members first, as opposed to the
Halifax plc bank whose primary responsibility is to
shareholders. I should add that I have no connection with the
Nationwide, but feel I must commend them on their honest
approach and dealings with their members.
The Halifax are
insisting on individual claims, so if you are a Halifax mortgage
holder who was tied to the "higher" variable mortgage rate. Your
claim should be addressed to:
Customer
Service Manager
Ombudsman’s Decision
Halifax PO Box 557
Halifax
West Yorkshire
HX1 2ZX
You can read
further details about the mortgage rate dispute at
Find A Property though details were previously published
on the FSO and Guardian Newspaper web page.
Page
created on 20 June 2002, last updated:
22 October 2006 23:29
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