According to The Province article, they have been sending letters to members since May, 2009. I got mind June 26. They are essentially asking members to screw themselves by paying 1% more and may further screw themselves by allowing Vancity to made any amendments they please in the future. This is because the prime plus 0.00 they convence us to take previously no longer provides the margin that they had wanted and I guess may also impact managment bonus and don't forget director fee increases.
Vancity's board of directors and senior managment have clearly lost touch with reality! My parent joined Vancity in the late 80's and I have been a member since the ealry 90's. Vancity has changed for the worst as it tries to become another big bank because they clearly do not give a SH*T about the members anymore. The heavy handed action it is taking to tear up contracts and force the rate increase down our throat is a clear indication of them loosing it! If we don't sign the amendment, they will recall the loan - I guess that means they will take my house away and sell it and we end up on the street?
What the h*ll happened to written agreements? Their reasons is that the interest rate spread between the savings interest rate they offer and the creidtline interest is no longer substainable! What?! @#??? If a member signed up for a 5 year mortage agreement at 5.75% and the rate drops to 3.75% in one year, can we go to Vancity and ask for a rate reduction without paying a heavy penalty? Of course not! What makes the creditline agreement different in principle?
I could be the only one not happy here? I can only find few disatisfied members on Yahoo Answer http://answers.yahoo.com/question/index? qid=20090707190353AAFDuoj
There is no class action and any group set up to deal with this unfair and heavy handed treatment of members.
Are there no lawyers who are Vancity members and affected by this? Or is this completely legal and ethical and I am just bitching for nothing here?
Burnaby, British Columbia