Banks introduce reset clause to alter interest rates- Financial Times-ET Features-The Economic Times
Well it seems the Fat Cats have found a new way to screw over the people on mortage interest loans.
It would seem that they have changed the rules of the game concerning fixed interest rate loans, by way of a new Reset clause. It would seem that even though it is brokered to the consumer as a fixed rate loan,
it's not fixed at all. The Fat Cats are now sliding into newly written mortage contracts a Reset clause that
should the prime interest rate go up, automatically so will your fixed rate interest.
Their greed knows no bounderies. They don't even have to tell you it's going to occurr.
I guess that's their way of making sure that their pockets always stay lined with green.
Now I'm sure that if prime interest dropped below the percentage you locked in at, they won't be extending you the same curtisy of a lower reset.
The average consumer assumes a fixed rate will never change, what is the point in calling it a fixed rate
and paying more for the loan, when it is no more fixed than the prime rate. Should it change so does your loan payment without warning if they so choose.
It would seem there is no protect or safe guard against these greedy bastards other than to out right just not dealing with them.
