MAS5 and The Co-operative Bank have paid substantial compensation to customers who complained to the Financial Ombudsman about unfair mortgage interest rates. To receive compensation each customer, past or present, in the first instance, needs to submit a complaint. This website gives free advice about how to do this. YOU CAN SUBMIT A COMPLAINT ABOUT THE INTEREST RATES YOU HAVE BEEN CHARGED EVEN IF YOU HAVE TRANSFERRED YOUR MORTGAGE AWAY FROM MAS5 OR IF YOUR HOME HAS BEEN REPOSSESSED.
This website has been produced by Justice Domains Limited, a not-for-profit company, for Mortgage Agency Services Five Limited, a not-for-profit company, which has no connection with the unethical Co-operative Bank or the Plymouth-based Mortgage Agency Services Number Five Limited, and any similarity in company names is purely coincidental. By using this website, you are agreeing to our disclaimer statement.
Quick updates to the video below:
18th October - Now that MAS5 has not been successful in its court case against the Financial Ombudsman Service (FOS) we have to be patient whilst FOS reinvestigates the unfair increases in MAS5's mortgage interest rate. MAS5 will drag this process out for as long as it can, but it knows that it can't win this battle - FOS has already ruled that the interest rate is unfair (see below) but that was not regarded as a final decision because the MAS5 customers in that case were bribed to withdraw their complaint.
MAS5 is doing its utmost to dissuade customers from sending their complaints to FOS. Many customers have sent me MAS5's responses to their complaints recently. Despite a very clear ruling in court to the contrary, MAS5 maintains that the interest rate increases that took place over six years ago cannot be fully investigated by FOS. That is not what the judge, Mr Justice Griffiths, said (maybe the Co-op Bank staff at MAS5 think they won the case, but they didn't!) Anything MAS5 says in its reply after the words "our position is...." you can safely ignore. MAS5's position regarding FOS' jurisdiction is irrelevant.
MAS5 is also fond of trying to mislead customers by saying "If you decide to refer your complaint to the Financial Ombudsman Service it will not have our permission to consider complaints, such as rate changes, which occurred more than six years ago." That sentence is confusing many customers, and that is exactly what MAS5 is trying to do. The Financial Ombudsman regards each and every mortgage payment made during the six years before the date of your complaint as a separate event to be investigated. The rate changes that occurred over six years ago are part of those investigations. That is FOS' position and MAS5 failed to convince a judge to rule otherwise. MAS5's permission is not required in this instance.
Make sure you send your complaint and MAS5's reply to FOS and email me if you need help.
4th August 2022 - LEAKED!!! The Financial Ombudsman Service's investigation into MAS5 interest rates that the Co-op Bank tried to cover up! The complainants were pressured by the Co-op Bank into signing a non-disclosure agreement and withdrawing their complaint in return for an undisclosed sum of money so that MAS5's misconduct would not be reported to the Financial Conduct Authority.
28th July 2022 - Dominic Lindley has worked tirelessly with the All Party Parliamentary Group for Mortgage Prisoners and with MAS5 customers to hold the unethical Co-op Bank to account. Thanks to him to we have the complaint template that has been used successfully to challenge the MAS5 interest rate. He has added a new post on the APPG's website here
27th July 2022 - Great News! MAS5 was unsuccessful in court in its attempt to prevent the Financial Ombudsman from investigating the unfair mortgage rate increases which have resulted in many families having their homes repossessed since 2009. Full Judicial Review ruling here
3rd July 2022 - Mail on Sunday article - More lies from the Co-op Bank, they do not "continue to support" me or any other mortgage prisoners. Apart from me joining MPs to meet their CEO last month, we last spoke in December 2020 when I was shielding and was told to sell my home during the lockdown! The only "continual support" I have received is continual legal action to repossess, which I defended myself and has been struck out of court. Thanks for writing the story Patrick Tooher.
21st June 2022 - thank you Lord Sharkey and Seema Malhotra MP for allowing me to join your meeting questioning Co-op Bank CEO Nick Slape about why the Co-op Bank charges some mortgage customers 6.25% interest and then bribes them to withdraw their complaints from the Financial Ombudsman. Not convinced that Mr Slape was pleased to see me.
15th June 2022 - London - attended the High Court to witness the Co-op Bank's attempts to stop the Financial Ombudsman's investigation into their interest rates. The Co-op Bank claims that they cannot show why our interest rate is so high because they lost the paperwork! Farcical!
From the stories I have heard it is clear that the Co-op Bank (I say the Co-op Bank because MAS5 has no staff of its own - they are all provided by and paid for by the Co-op Bank) is flouting Financial Conduct Authority regulations in many areas, not just by charging an unfair interest rate. The more cases I see, the clearer it is that the Co-op Bank has from the start been in severe financial difficulty and saw MAS5 customers as a way of bailing out the Bank. Our mortgages have now been sold to Warwick Finance Residential Mortgages - the Co-op Bank did this to raise £1.5bn in cash after failing its liquidy tests. The Co-op Bank pays a yield of 3.3% to Warwick Finance, but charges us 6.5% (soon to increase) and pockets the difference. Ethical?
Please do contact me if you complain to the Co-op Bank. The All-Party Parliamentary Group for Mortgage Prisoners has been incredibly helpful and I will put you in touch so they can monitor how our complaints progress with the Financial Ombudsman Service.
see the complaint template
If the rates of interest detailed in the complaint template are the same as the rates of interest you have paid then go ahead and follow the instructions on the complaint template page. Otherwise, see below.
Any problems?
If you're not sure what interest rates you have been charged then ask MAS5 to confirm by emailing simone.fox@co-operativebank.co.uk
For free help if you have any other issues, or if you would be prepared to speak to an investigative TV researcher about your experience with MAS5 and the Co-op Bank - email help@justicedomains.co.uk
Subscribe to updates about how the unethical Co-operative Bank continues to lie to the FCA, the FOS and its customers in its relentless pursuit of profiteering and stealing the homes of mortgage prisoners:
APPG Challenges Co-operative Bank on Treatment of Mortgage Prisoners & Unfair Rate Increases
24th Feb 2022
The All-Party Parliamentary Group (APPG) on Mortgage Prisoners has written to the Co-operative Bank, the FCA and the FOS demanding action for Mortgage Agency Services No.5 (MAS5) mortgage customers who have been hit by unfair increases in interest rates.
The evidence uncovered by the APPG and FOS suggests that MAS5 treated customers unfairly and that the increases to the MAS5 SVR were not in line with the terms and conditions of the mortgage.
The FOS investigator found that MAS5 had treated a customer unfairly when it increased their Standard Variable Rate (SVR) from 2.99% to 5.75% over the period 2009 to 2012.
MAS5 increased the SVR four times over the period 2009 to 2012. It claims that each of these rises was necessary to reflect changes in the cost of funding.
On 1 July 2009 the SVR was increased by 0.75% to 3.74%
On 1 October 2009 the SVR was increased by 0.76% to 4.50%
On 1 March 2011, the SVR was increased by 0.75% to 5.25%
On 1 May 2012, the SVR was increased by 0.50% to 5.75%
In relation to the 2009 increases the FOS investigator found that MAS5 “had not provided any evidence to show that the costs of funds it used in its business increased”. In relation to the 2011 and 2012 SVR increases “[MAS5] hasn’t provided anything that relates specifically to MAS5’s own costs, or how these might have changed.”
The Co-operative Bank and MAS5 are now engaged in a Judicial Review to try and prevent the FOS from examining the fairness of the SVR increases in other cases.
The APPG has also received very disturbing reports about how MAS5 and the Co-operative Bank have been treating vulnerable customers and these have been passed to the FCA for investigation.
Seema Malhotra MP, Co-Chair of the APPG on Mortgage Prisoners said "The Financial Ombudsman's investigator concluded that the SVR increases by Mortgage Agency Services No.5 (MAS5) Ltd were unfair and not in line with the terms and conditions of the mortgage. These unfair increases have had a devastating impact on customers.”
“We hope that the Co-operative Bank will start living up to its ethical values and pay redress to the customers who have overpaid due to the misconduct. The FCA and the FOS need to intervene to protect these customers and stop MAS5 from dragging out these cases and causing more misery to vulnerable people. Many of these customers have serious health issues or financial problems."
Actions requested from the Co-operative Bank / Mortgage Agency Services No.5 Ltd
Share all of the information submitted to FOS about MAS5 funding costs.
Immediately halt all threats of repossession to MAS5 customers paying the SVR.
Cut the rates paid by MAS5 SVR customers by 2.76% to reflect the impact of the unfair interest rate increases.
Pay redress to MAS5 customers for the overpayment of interest due to the unfair interest rate increases.
Allow all MAS5 customers to access Co-operative bank fixed rates by using the flexibility allowed in FCA rules to streamline any affordability assessment.
Institute an independent investigation into whether any staff within the Co-operative Bank or MAS5 sought to conceal the misconduct or failed to comply with the bank’s policies on the treatment of vulnerable customers.
Stop imposing confidentiality agreements on customers which prohibit them from sharing details of their complaints and MAS5 misconduct with the FCA.
Actions requested from the FCA
Open an investigation into the increases in the SVR by MAS5 during the period 2009-2012, including whether senior executives within MAS5 and the Co-operative banking group have misled FCA officials.
Order MAS5 to reduce the SVR by 2.76% to reflect the impact of the unfair interest rate increases.
Order MAS5 to pay redress to customers affected by the overpayment of interest due to the unfair interest rate increases.
Instruct MAS5 to halt any repossession action against MAS5 customers paying the SVR and to offer forbearance whilst this investigation and the assessment of the FOS complaints are ongoing.
Open investigations into the breaches of DISP rules by MAS5 and their treatment of vulnerable customers.
Undertake a 'lessons learned' exercise into why FCA officials and board members failed to uncover or properly investigate the misconduct within MAS5 when this issue was reported to them over the period 2019-2021.
Clarify whether the FCA regard it as acceptable for firms to impose confidentiality clauses on consumers which prevent them from reporting their concerns to the FCA.
Actions requested from the FOS
Communicates to MAS5 that all possession action should cease until these complaints have been assessed.
Reviews its decision to suspend consideration of the MAS5 complaints. In our view, and especially given the time which has already elapsed, consideration and assessment of these complaints should proceed alongside any Judicial Review. As the FOS has already investigated the interest rate rises and found them to be unfair this would have minimal resource implications for FOS and would ensure that these vulnerable customers get an assessment of their complaint within a reasonable length of time.
Explains why it believes that MAS5 customers “ought reasonably” to have been aware that MAS5 was misleading them about whether MAS5’s funding costs had increased.
Reopen any previously assessed cases involving MAS5 as the new evidence gathered by Mr Morris suggests that previous FOS investigators and Ombudsmen may have come to the wrong decision.
Report the issues raised by these cases to the FOS/FCA Coordination Committee and ensure that minutes of these meetings are published to aid accountability.
Nick Slape Chief Executive Officer
The Co-operative Bank Plc
P.O. Box 101
1 Balloon Street
Manchester
M60 4EP
Dear Mr Slape
We are writing on behalf of the All-Party Parliamentary Group (APPG) on Mortgage Prisoners to express concern about the conduct of Mortgage Agency Services No.5 Ltd which is part of the Cooperative Banking Group. The evidence uncovered by the APPG and FOS suggests that MAS5 treated customers unfairly and that the increases to the MAS5 SVR were not in line with the terms and conditions of the mortgage.
MAS5 increased the SVR four times over the period 2009 to 2012. It claims that each of these rises was necessary to reflect changes in the cost of funding.
• On 1 July 2009 the SVR was increased by 0.75% to 3.74%
• On 1 October 2009 the SVR was increased by 0.76% to 4.50%
• On 1 March 2011, the SVR was increased by 0.75% to 5.25%
• On 1 May 2012, the SVR was increased by 0.50% to 5.75%
In relation to the 2009 increases the FOS investigator found that MAS5 “had not provided any evidence to show that the costs of funds it used in its business increased”. In relation to the 2011 and 2012 SVR increases “[MAS5] hasn’t provided anything that relates specifically to MAS5’s own costs, or how these might have changed.”
The conclusion of the FOS investigator was that “For the reasons I’ve explained, based on the information currently available, I’m not satisfied MAS5 has increased the SVR in line with the terms and conditions of [Mr and Mrs X’s] mortgage. As a result, I think Mr and Mrs X have been treated unfairly.”
The FOS investigator thought that Mr and Mrs X’s mortgage should assume that the four increases in the SVR did not take place and that MAS5 should pay redress on that basis.
We are very confused as to why in other cases, such as Mrs D’s complaint, MAS5 is trying to restrict the ability of FOS to examine the fairness of the SVR rises and yet is still relying on those unfair rate increases to charge MAS5 customers a very high SVR. We have also received very disturbing reports of how MAS5 and the Co-operative Bank are treating vulnerable customers. Instead of supporting one of your customers who has given years of service to the NHS, you are threatening to repossess his home.
We are writing to request that you take control of this situation and start living the claimed values of the Co-operative as an ethical bank by taking the following action:
• Share all of the information you have submitted to FOS about MAS5 funding costs.
• Immediately halt all threats of repossession to MAS5 customers paying the SVR.
• Cut the rates paid by MAS5 SVR customers by 2.76% to reflect the impact of the unfair interest rate increases.
• Pay redress to MAS5 customers for the overpayment of interest due to the unfair interest rate increases.
• Allow all MAS5 customers to access Co-operative bank fixed rates by using the flexibility allowed in FCA rules to streamline any affordability assessment.
• Institute an independent investigation into whether any staff within the Co-operative Bank or MAS5 sought to conceal the misconduct or failed to comply with the bank’s policies on the treatment of vulnerable customers.
• Stop imposing confidentiality agreements on customers which prohibit them from sharing details of their complaints and MAS5 misconduct with the FCA.
We would like to meet with you to discuss these issues and to ensure that you understand the impact on your customers of the bank’s conduct. We look forward to hearing from you.
Kind regards
Seema Malhotra MP
Lord Sharkey
Co-Chairs, APPG on Mortgage Prisoners
CC Sheldon Mills, FCA