There has been some talk of this lately, and it is an issue that we have raised concerns on in the past – to get the good news out early – there is only a very small chance that banks might ever actually do this, but just in case we already pointed this out in 2009 and early 2010.
We’ll assume though that it is going to happen (for the sake of this post), so how will they do it?
The recent points have been regarding the small print in some of the tracker contracts, one example below is taken from a KBC tracker contract, but suffice to say similar or other ‘same end result’ conditions exist in other contracts (click on the image to see a larger version).
In this example KBC have had every right to remove trackers from their clients since …