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.