Lawyer Takes On banks

When the reserve bank cut the official interest rate last week, most of the big banks defied history and refused to pass them on to customers.

One lawyer, John Mahony, has declared enough is enough and is launching a class action in a bold attempt to make them live up to their obligations.

au.todaytonight.yahoo.com...

Since the beginning of the "financial crisis" the big (Australian) banks are making on average $450 extra per year on each mortgage. Finally somebody is doing something about it since the government won't.

[edit on 13-4-2009 by OZtracized]

Director of the Centre of Corporate Law at Melbourne University, Professor Ian Ramsay, thinks John will have little chance.

"He's really trying to say that all the loan contracts that both major banks and small banks have entered into with thousands and thousands of people across the country, they are really all invalid," he said.

I really do hope he does achieve his goal. By challenging the contractual agreements, if the court agrees with him, could possibly invalidate thousands of mortgage agreements. The banks will do their utmost to not let this happen.

Methinks either this will be hushed up or it will become the s**tstorm of the century.

I'm not sure how they figure the contracts will be null and void, isn't he just trying to force the banks to fulfill their end of the contract? One would think that would be an open and shut case.

I have a mortgage and am personally infuriated that they do this and the government does nothing more than gets on the T.V. and says "oh those naughty banks but wadda ya do".

That interest rate cut is for us, not them.