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Law firm complains to OFT over Skipton’s scrapped ceiling rate

Law firm Leon Kaye has filed a formal complaint with the Office of Fair Trading on behalf of Skipton Building Society borrowers who were hit by its decision to scrap the ceiling on its standard variable rate.

The submission has been sent to the OFT on behalf of Skipton’s buy-to-let customers as they fall outside of the FSA’s regulatory remit.

Leon Kaye may raise the complaint on behalf of residential borrowers in the fut-ure, depending on the success of the OFT submission.

However, the solicitor has claimed the OFT could pass the case on to the FSA if it decides not to take action.

Money Marketing first revealed Skipton’s move to scrap the ceiling rate on its SVR inJanuary, which meant customers would never pay more than 3 per cent over the base rate.

Leon Kaye partner Jamie Berry says: “We intend to fight this battle on as many fronts as we can for these borrowers and cannot rule out the possibility of a class action against Skipton if the Government and its agencies will not help.”

A Skipton spokeswoman says: “As we have not received any direct communication from Leon Kaye regarding any formal complaint to the OFT, it would be inappropriate to comment.”

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