Building Society Challenged over Rate Rise
24th February 2010
Skipton Building Society faces a legal challenge to its plan to raise the ceiling on its standard variable rate mortgage for over 60,000 customers from 3.5% to 4.95% when their current mortgage deal reaches its end.
The building society, the UK’s fourth biggest, claims it may do so in exceptional circumstances.
However, the legal challenge will proceed on the basis that the change is unlawful in terms of the Unfair Contract Terms Act 1977, and that the recent economic downturn does not constitute exceptional circumstances.
Sharp Customer Wins Right to Challenge Unfair Bank Charges
24th February 2010
In the case of Sharp v Bank of Scotland, a client of Govan Law Centre succeeded in persuading Glasgow Sheriff Court to admit a challenge to bank overdraft charges in terms of the Consumer Credit Act.
This follows a decision of the House of Lords in November 2009 to reject a general challenge brought by the Office of Fair Trading, when it was ruled that a scale of bank charges was not susceptible to challenge under the Unfair Terms in Consumer Contracts Regulations 1999.
However, the new case proceeds on the basis of section 140A of the Consumer Credit Act ...