If you are still in an adjustable rate loan, look at your loan documents. Is the rate based on the LIBOR (London Inter Bank Offered Rate)? If you answered yes, sit up and take note.
An international investigation into Libor rigging, begun in 2012 revealed widespread multi-bank rate fixing. Interest rates were discovered to have been manipulated by banks for profit as far back as 2003 and as recently as 2011. Over $300 Trillion worth of loans worldwide are believed to have been affected by Libor rigging, resulting in over $9 billion in fines to banks around the globe. The subsequent LIBOR rigging scandal set off calls for reform, but really, where does that leave you?
This week, a press release reveals that lenders Citi and HSBC cut separate deals in the Libor (London Inter Bank Offered Rate) rigging US suit led by the Berkshire and the Government Development Bank of Puerto Rico. The final settlement, totaling $27 million, concludes the US class action suit. Citi agreed to pay $23 million and HSBC Bank PLC committed to pay the remaining $4 million. Still, there are homeowners out there paying higher interest rates because they were trapped in LIBOR loans by lack of credit, income or equity. How does this suit affect them. Hint: Short answer, the settlement doesn’t benefit homeowners. It was brought by US banks who lost profits due to the rigging. The Canadian case is now filed and pending.
If you are still fighting the good fight against foreclosure and are in a loan based on the Libor, you may be able to stop foreclosure by suing your lender. Check your paperwork. If you are in a LIBOR mortgage, there may be precedent set by the waves of cases brought by investors, banks and governments against the perpetrators of the Libor rigging. Talk to us to learn how you may be able to use that tool in a suit against your lender. A brief no obligation review of your situation can help you know what your options are. Contact us today.
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