West Bromwich Building Society Accounts

by Mark Alexander

18:10 PM, 21st October 2014
About 5 years ago

West Bromwich Building Society Accounts

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West Bromwich Building Society Accounts

The 2013/14 accounts for West Bromwich Building Society show that they appear to have turned a corner and are back into profit. West Bromwich Building Society Accounts

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?

West Bromwich Building Society Swanky New Head Office

West Bromwich Building Society
Swanky New Head Office

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.

 



Comments

Onslow Clough

10:57 AM, 22nd October 2014
About 5 years ago

What I find most galling about all of this is the effect it has had on me, as a landlord. I am just trying to make a living as an honest ordinary landlord, with accreditation from the local council. I house local people many of whom are on benefits. Then along comes the West Bromwich and in one blow, they announce that my mortgage repayments are to be doubled. How on earth can this be justified without this part of the terms and conditions making it onto the front page of the contract? (Or being highlighted anywhere within the small print?) I have interest only tracker mortgages which follow the Bank of England base rate. That is what I signed up for. The base rate has not gone up, but West Bromwich have increased my payments regardless. This kind of mercenary behaviour by the big financial institutions has got to stop. West Brom management are paying for their bonuses using my money. It feels as though I am being robbed in broad daylight. I hope the WBBS are taught a very big and painful lesson in court.

Andy Bell

14:09 PM, 22nd October 2014
About 5 years ago

West Bromwich Building Society Accounts do seem to highlight that the society can't be trusted to be working in the best interests of their members and borrowers. By discounting potential liabilities the Executives get a bonus. Who do they have to dupe to get these bonuses? Who should be scrutinising their confidence of win? Will they be paying these back their bonuses when they lose the court case?

I do hope that these accounts get challenged somewhere down the line. Questionably falsifying the financial position should be a big no no these days. Other institutions do do seem to publicise the size of provisions they make to cover losses due their mis-handling and mis-selling activities.

Mike L

20:30 PM, 22nd October 2014
About 5 years ago

This really doesn't look like a well run business. It also doesn't look like a good place to keep your savings. If I had my money with West Brom I would certainly be asking a few more question on how it is being used??

chrisbusy

22:37 PM, 22nd October 2014
About 5 years ago

Mike

If i had ANY money with the west Brom i would be moving it .

Marshie Cyrus

22:41 PM, 22nd October 2014
About 5 years ago

Reading about bonuses like this makes my blood boil!!! I now have to work a full month each year on my day job to pay my extra premiums that I am being charged due to West Bromwich breaking my clear contract with them.
I am looking forward to justice being done in court!!

Dean

9:35 AM, 23rd October 2014
About 5 years ago

Reply to the comment left by "Marshall " at "22/10/2014 - 22:41":

I wish you hadn't said that Marshall !

Ive just worked it out. I have to work 2.5 months to cover what they stole.

While they take 1/2 million for probably 20 days work !!

Mark Alexander

9:51 AM, 23rd October 2014
About 5 years ago

BREAKING NEWS

The Court date is set for 21st January 2015.

Frustrating that we have to wait until after Xmas to say the least!
.

Dean

9:57 AM, 23rd October 2014
About 5 years ago

Reply to the comment left by "Mark Alexander" at "23/10/2014 - 09:51":

At least we now have a date we can look forward to .

Will this be a definite date and can we try and get a Court big enough to accommodate all those that want to go ?

Who thinks they will be going ?

Mark A do you think it appropriate to post on here the names ? Or will it fill this thread up too much ?

Dean

Mark Alexander

10:15 AM, 23rd October 2014
About 5 years ago

Reply to the comment left by "Dean " at "23/10/2014 - 09:57":

It would be good to get an idea of numbers, even if people don't want to post under their real names.
.

Dean

10:18 AM, 23rd October 2014
About 5 years ago

Reply to the comment left by "Mark Alexander" at "23/10/2014 - 10:15":

Yes it would be interesting . I think at this stage it doesn't need to be definite just a rough idea of who is interested in going

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