Crispy Ambulance
Well-known member
Trying to get my head around how big the artificially fixing of Libor could be.
Lets say Mr A has a mortgage with Bank B who set his monthly payment of £600 at in interest rate linked to (over-stated) Libor. His bank increases his monthly payment to £800 stating that a Libor increase is costing them more to borrow so they have to pass on the cost. He can't afford the extra amount and falls into arrears. He is unable to pay the arrears, the Bank (eventually) obtain a Possession Order and evict him.
If, as a result of the forthcoming reviews and enquiries into the banks colluding into setting artificially high Libor, Bank B are found guilty of charging Mr A a higher amount than he should have been paying (thus resulting in arrears/reposession), would he have any recourse towards Bank B and how would he go about raising a case/claim against them?
Secondly, how would the actual amount he should have been paying each month be determined (assuming that the monthly payment of £600 was linked to a dodgy Libor in the first place)?
Assuming there's lots of Mr A's similarly impacted (although not always ending up in repo), is there a potential that the financial repercussions will make successful PPI claims seem like loose change in comparison?
Lets say Mr A has a mortgage with Bank B who set his monthly payment of £600 at in interest rate linked to (over-stated) Libor. His bank increases his monthly payment to £800 stating that a Libor increase is costing them more to borrow so they have to pass on the cost. He can't afford the extra amount and falls into arrears. He is unable to pay the arrears, the Bank (eventually) obtain a Possession Order and evict him.
If, as a result of the forthcoming reviews and enquiries into the banks colluding into setting artificially high Libor, Bank B are found guilty of charging Mr A a higher amount than he should have been paying (thus resulting in arrears/reposession), would he have any recourse towards Bank B and how would he go about raising a case/claim against them?
Secondly, how would the actual amount he should have been paying each month be determined (assuming that the monthly payment of £600 was linked to a dodgy Libor in the first place)?
Assuming there's lots of Mr A's similarly impacted (although not always ending up in repo), is there a potential that the financial repercussions will make successful PPI claims seem like loose change in comparison?