18:10 PM, 21st October 2014, About 7 years ago 26
The 2013/14 accounts for West Bromwich Building Society show that they appear to have turned a corner and are back into profit.
Or do they?
Perhaps that corner is a roundabout!
Profits of £2.1 million were declared and their Chief Executive got a very nice thank you in the form of a whopping £134,000 bonus.
What was that for I wonder?
The startling results and turnaround in fortunes perhaps?
But hang on a minute ……… wasn’t their justification for increasing tracker rate margins that they were doing so badly?
Any notion of restructuring, staffing cuts or putting their swanky new head office plans on hold was none existent. Surely that’s what struggling business do when their finances come under pressure?
Having poured over their accounts there is a mention of a Court case by the Property118 representative action group which is challenging the tracker mortgage rate hike but ………. their is no provision in their accounts for losing the case!
It was previously estimated by mainstream media that West Brom would net around £15 – £20 million a year from the tracker margin rate hike. It’s been over a year now since they announced it and by the time the case gets to Court it will be around a full year from implementation.
Where will the money come from to pay back all that over charging and the comparatively ludicrous costs of their legal team to fight the Court case? Obviously they consider they have a cast iron case of winning but over £500,000 has been raised by people who don’t agree with them and neither do 53 MP’s who signed Early Day Motion #976 [link]. The trade press, most IFA’s and mortgage brokers as well as the mainstream media weren’t too impressed with the rate hike either!
The legal battle in the Commercial Courts is now imminent, we are just waiting for the date to be announced.
— Mark Alexander (@iAmALandlord) October 21, 2014
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