Hi Nick, thank you for doing this interview. We understand that you think you are entitled to compensation from Libor in more ways than one. Can you firstly give us a bit of background about your financial situation over the course of the last few years:
Hello. Yes, certainly. I was a homeowner struggling after the economic meltdown of 2008. I had an interest only mortgage that was costing a small fortune every month, and would invariably increase each quarter due to the fact that it was a sub-prime Libor linked mortgage.
Prior to the recession i was having to find at least £1500 pounds every month for the mortgage to keep a roof over my head which wasn’t very fun.
So Nick, what is it that you think you are entitled to?
For me things are a little bit more complicated than what people are currently talking about in regards to compensation from the banks for upping interest rates at a time when people could barely afford to put food on the table. I have seen figures posted about Americas situation where it suggests that the average American with a Libor linked mortgage was around 50 to 100 dollars a month out of pocket during the times Libor was artificially inflated. I get the feeling, having read many peoples opinions over the internet, that compensation is on the tip of peoples tongues, but they are after compensation for the times when Libor was artificially high, they want any money that is owed to them back. I want something different.
While i do want any money that is owed to me back for times when Libor was higher than it really should have been, i also want compensation for the financial duress i was put under having to find hundreds and hundreds of pounds on a sub-prime Libor linked mortgage that was increasing in price on a frequent basis during one of the worst economic periods of time Britain has faced. I was being kicked when i was down and virtually out.
So what you’re saying is, Nick, that you want to claim compensation for the financial strain Libor inflation put you under during an unstable economy when you were presumably experiencing difficulty with earning a living?
Yes, pretty much. The rough economy that came about from the 2008 banking crash has cost me money in more ways than one. I was not only having to find already large amounts of money every month, that were being made even larger thanks to unnecessary Libor inflation, i was making less money every month from various businesses thanks to the dent the banking crisis put in consumer confidence. But the worst thing for me is the fact that the crisis put my property into negative equity. Prior to the recession i had my home valued at as much as two hundred and twenty thousand pounds which gave me equity of around fifty thousand pounds. I was actually looking to sell around 2007 / 2008 and then the economic crisis began and wiped all of my equity away leaving me with very few options.
Ultimately, i lost my property. I am not seeking to claim compensation for the fact my home lost equity, but i am hoping that i can claim some sort of compensation back for the fact that during a period of time where the economy was on its bum i was having to pay more money than i really should have been on my mortgage which i was already struggling to pay. I want compensation for losing my home which was an asset even in negative equity as it always had the potential to go up in value.
Ok, so, what are you intending to do, sue the bank?
I am waiting to how things turn out, as of yet this is still a relatively fresh scandal that has yet to divulge all of its finer details. As far as i am aware people, or rather businesses, in the usa, are already looking to quibble with banks over loans formed around Libor interest. At the minute the banks are being quite stern and waving away people looking to make claims for compensation but that will not stop anyone who is serious about suing them. As has been stated, the biggest worry for the banks is not fines from regulators but payouts from the legal cases filed against them.
All the majority of people need is to see a case to do with Libor go against the banks and the flood gates should open.
Instead of people being harassed by legal types about reclaiming PPI (payment protection insurance), which is chicken feed in comparison to potential Libor cases, they will be badgering people about Libor.
Thanks for this insight into your personal experiences over the last couple of years and your thoughts on Libor.
It’s no problem at all. I am sure there are many with similar stories to my own.