Hoist and petard come to mind

The Government and banks could face legal action from thousands of savers over the Help to Buy Isa scandal, as experts said they may have broken consumer law by failing to make vital restrictions clear to customers.

You can’t use the bonus to pay your deposit.

The restriction has come as a shock to many savers because major Isa providers including Halifax, HSBC and Natwest failed to mention the condition anywhere in their literature.

The clause was also missing from the official Help to Buy Isa scheme rules and until last week only appeared in an FAQ area of the Treasury’s Help to Buy Isa webpage.

Following this newspaper’s inquiry last Friday it quietly updated the site to include the wording on its front page.

According to the Consumer Rights Act 2015, contracts must clearly state the main elements of a deal in a transparent and prominent way. A product’s terms must also be prominent so an average well-informed, observant and circumspect consumer would be aware of them.

3 thoughts on “Hoist and petard come to mind”

  1. The whole scheme is a joke anyway: rather than letting interest rates rise and dickheads who have overstretched themselves have to sell up and downsize thus correcting the market distortions, the government has decided instead to bung supposedly first time buyers 25% on a savings account.

    Although I note that it applies only to houses of less than £250k (outside of London). The average UK salary is about £30k per year before tax. There’s the problem right there.

  2. Apart from the fact that the article is wrong, of course.

    Help to Buy: ISA Scheme Rules and the process for the conveyancer claiming the bonus from the government doesn’t require the purchase to have completed. The conveyancer, in summary, provides details of the ‘proposed’ purchase as part of the documentation they are required to submit to HMT. There is a three month period where the bonus is repayable if the property purchase hasn’t completed so this fact seems to make clear that there is no requirement for the purchase to have completed before the bonus payment is made to the conveyancer.

    I understand the treasury is planning a rebuttal press release.

  3. Tolkien, is that a copy’n’paste from the just-posted info that should’ve been there from the start? Genuine question, given that I don’t know the second thing about it. The first thing, however – that the public sector’s a cesspit of incompetence – I know far too well.

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