Would there be national support for a class action lawsuit against the RBA for telling homeowners they wouldn’t raise interest rates until 2024. RBA would need to compensate mortgage holders for higher interest costs incurred with rates rising earlier than stated.
Class Action Against RBA
Comments
This is not the time to do it, but you absolutely can sue a government for a policy decision. Most acts also have a cause that says "this act binds the crown", which in English means the government is not above the law.
Also the RBA is a body corporate, not technically the government. You can sue it. It even says so in their act. s 7(c)
Correct, there are entire practices dedicated to admin law matters.
Why should we pay for your life choices? Shouldn't keep borrowing to the limit next time?
How does deferring interest rate rises for 2 years help anybody in the long run? All you're doing is 'kicking the can down the road'. It would've made more sense if OP made a case for a non-zero interest rate as "usury".
I'll enjoy buying your house when you go bankrupt
Would be nice to block $5m+ asset owners from buying in this manipulated market, it'll plummet further down!
Buckle up buddy!
If you were responsible you would've factored in RBA interest rises, if you've maxed out to the point where a slight rise in rates affects you then you're not ready to take out that mortgage.
Fomo bro
Sadly the case, also doesn't help that banks were handing out loans so easily and to everyone.
How many people will default on their homes that were purchased within last 5 years that are not illegal chinese money % wise?
I'm so sick of hearing people blaming everyone else but themselves about their mortgage rates increasing.
These are the same people that reduced their repayments with each rate reduction over the years, and not capatilise on the lower rates to eat chunks out of their mortgage. Using their extra borrowing power to buy cars, holidays, home improvements etc… Now that the rates are increasing they're blaming everyone but themselves.
I got my mortgage in 2008 and didn't see if I could afford to pay the current rate (7-8%) I factored in at least a 2% increase to see if I could afford it.Very different scenario. House prices were a lot cheaper in 2008, despite the 7% rate. You yourself added a 2% buffer. Problem we have now is that even a 3% buffer isn't going to be enough (which is what the banks even use). If people calculated a 9% interest rate (like you did) when buying last year, then nobody could afford a home.
Yes, I like taking risk and getting all the reward but none of the downside. This is what the australian fair go means, you fairly get to own a house and your problems go away because of the government.
The smart individuals would have locked in a 3,4,5 year fixed rate at under 2%. This was a once in a lifetime opportunity. Those on a variable rate will always be at the mercy of the markets
Soooooo class action against the markets?? Who's in!?
Those darn bond traders!
No.
You made your bed, now lay in it.
How silly are you to think you shouldn't be held responsible for taking out a mortgage?
Be an adult OP!!! A responsible one.
This is a joke right? Class action against an org for getting a prediction wrong lol. If you were dumb enough to make an investment decision based solely on their prediction and reliant on it being right you were always going to lose your money.
Unfortunately if you put a small deposit and can't afford repayments you will lose the <5% if the home you own. $1M for a new home on 300m2 land is a poor decision. Just stay a renter like 40% of us.
A friend wanted to pay 1.2M mil for a 250M2 land because they want to live in a house (mainly to show off) even though combined income of the family is <200k. I had no words
Boohoo, this guy said things would be good for another 2 yrs, so i went and blew all my money and mortgaged myself to the absolute limit with no room for even the tiniest interest rate rise. waaaaa someone has to take the blame for this except me waaaaa
RBA always make such statements to try to trigger a self fulfilling prophecy.
Never trust them.It isn't so much never trust them. It is understand their motivation and objective. The RBA are not there to protect the individuals borrowings or your personal financial wellbeing, they are there to do what they think is best for the economy as a whole and often that will involve making statements to instill confidence. basically better advise is to NOT rely on their advise for personal financial decisions as they don't make statements that are designed for that.
Not a class action, but the RBA should be restaffed. They should have been raising interest rates much sooner.
Nobody I knew irl believed Dr Lowe when he was implying rates wouldn't rise for 2 years.
Yeah more government payouts is exactly what this country needs right now… that will curb interest rate growth!
I think we need a class action against the OP for making this stupid thread.
I don't think so. Will however support the below class actions:
Class action against stupidity
Class action against entitled morons
Class action for taking responsibilityNext post: Class action against politicians for not keeping their promises?
Was unable to lock in a cheap fixed rate as house is still under construction and unable to fix until build is complete
Going to sue them for your house drastically increasing in value while you're at it?
Sounds like someone made a bad investment and is looking to pass on the blame.
If the housing market is treated as an investment opportunity don't get all upset if gasps your house loses value.
This summarises why there is anger and disappointment at the RBA
Alan Kohler : Households In Tough Financial Position …
— https://www.youtube.com/watch?v=O9RgAFpPv6c | 2:26
I wouldn't listen to Alan Kohler who is essentially a celebrity rather than a proper economist. He is no Keynes nor Adam Smith.
No different to Scott Pape imho.
that Youtube video is just stating facts,
and not discussing 'economic principles'.He's just discussing meeting minutes from the RBA,
and how many people were led on by 'positive spin' language to take on debt.
Is there a reason why you would like to reduce the amount of interest you pay?
https://www.ozbargain.com.au/comment/11833509/redirLol. We're entering the age of entitlement.
I thought Joe Hockey said we were already there 8 years ago?
Ya I don't think you will you will get a good answer here OP. Not with this platform.
All I will say is if RBA were wrong then, they can be wrong now also.Suck it up
I guess you also rely on what real estate agents say to make your property purchasing decisions
Interesting post, great poll, and enlighting comments I give it 7/10.
Can't wait for the next featured post..
Either OP is a troll or has absolutely no understanding of how the law works.
lowe is a pathetic. im also suffering too. but class action get to nowhere.
Idiots like this that contributed to the bubble
End of the day every one for themselves. Don't expect the rich and/or powerful to help you. They only help each other.
Interest rates have hardly risen and we have gotten some cracker posts like this in the forums. Thanks for the ongoing entertainment.
Kind Regards,
A financially responsible person
Even if they did say what you claim they did, trying to sue the RBA or the Government is playing them at their own game, it will destroy your life.
Basically you have an indebted government…and indebted mortgage holders…wanting to pour pressure on the RBA to raise inflation targets and keep interest rates low to inflate away their huge debts.
Some people might think it's a good idea to worry more about debt than inflation.
Fools rush in…RBA held a gun at my head and force me to get a mortgage /s
Nobody's saying that but they made irresponsible statements which then get reported in the media and influence people that are not financially savvy.
I work in financial services dispute resolution and have seen financial advisers forced to compensate clients for less.
That's completely different. A financial advisor is a paid to advisor you so there are strict guidelines and a fiduciary duty to the client.
The RBA is a governmental organisation with no direct relation to you or your mortgage.
Its like trying to sue the garbage man because he told you the council bin day was Tuesday instead of Thursday and you missed the pickup.
Not really. They know anything they say will be reported by the media due to the obsession with property and interest rates in this country. Major news sites run interest rate relates stories pretty much every day.
What I'm referring to in financial disputes is often not direct statements made by advisers to clients, rather clients misinterpreting information that is in fact accurate (such as the risks of losing money on investments) and advisers sometimes being held responsible for that by the ombudsman.
Yes the RBA has no direct link to your mortgage, but their repeated statements that the long term interest rate outlook was likely to be "safe" were irresponsible. This absolutely has an effect on people's willingness to borrow and also how much they will pay for property. Maybe it shouldn't , but it does and the RBA should be well aware of this.
@Randolph Duke: No, but they should be aware what they say will get reported and in a style to generate clicks.
There was absolutely no need for them to make (repeated) predictions which at the time covered the next three years. It was irresponsible.
If you actually thought that, you were not paying attention to the all the smoke that was already in 2021
By all means, support the OP and waste your money.
It would be ironic to try to punish the RBA by making them pay compensation. The RBA literally create money out of thin air.
They never promised interest rates weren't going up before 2024 LOL. Learn some English comprehension.
“The Board will not increase the cash rate until actual inflation is sustainably within the 2 to 3 per cent target range. For this to occur, wages growth will have to be materially higher than it is currently. This will require significant gains in employment and a return to a tight labour market. The Board does not expect these conditions to be met until 2024 at the earliest.”
If anything, it should be news media that's at fault for misrepresenting what RBA actually said.
More often than not, the actual info is overblown for more FUD or FOMO in this click baity world.Side note, Has news media ever been legit in the past ? (without counting the investigative news)
The RBA release statements. The news just pick out parts for headlines.
If people were actually relying on the RBA's statements, they should be reading direct from the source.
If people are making life changing financial decisions based on a news article, they probably need a class action to investigate if they have a brain.
That's what she said….
I voted yes not because I think its the right step to take, but because I actually think the current government should push for a independent Federal corruption Commission to come into being asap.
There is alot of hidden corruption at the top end of public service, with senior bureaucrats retiring into plum multi-million dollars advisory roles after leaving public service. The recent America Trade and Investment Commissioner Barilaro scandal comes to mind. The former Defence Minister Christopher Pyne also took up a cushy defence industry consulting job right after leaving politics. Coincidentally, the Liberal party has been pushing back against a Federal corruption Commission for the better part of their rule in parliament, I wonder why.
I wonder if Lowe would be offered a cushy bank job after his time at RBA ends.
I don't think the RBA ever says they will or won't do anything in definite wording. OP probably actually needs to read the monthly RBA statements the put out.
Correct, but they repeatedly stated they felt rates were unlikely to move before 2024 and those statements were designed to encourage economic activity, that is borrowing and spending.
There was simply no need to make those type of statements and it was irresponsible as anyone within the RBA would know how quickly things can change. They also were aggressively raising rates just before the GFC and then had to quickly slash them again.
Incorrect. They stated that until inflation got above 3% they weren't going to do squat. They expected this to happen by 2024. But guess what? Inflation got higher earlier! Things changed and they adapted.
RBA don't control inflation, they read it and then react accordingly.
What the media report and what the RBA say are very different things most of the time. Or often people don't read the articles correctly anyway.
Yes they "expected" it to happen by 2024 and also suggested rates would not move before then. There was simply no need to say that. Its like the weather, beyond the next couple of days its all guesswork.
RBA don't control inflation, but they do make ham fisted attempts at doing so.
They should also be smart enough to know the general public don't read RBA minutes and how the media might relay such statements.
This post reminds me of the most annoying sound in the world….. well the movie it’s from anyway
hmm troll post to get everyone fired up ? God help some ppl if we experience interest rates of the early 90's again which was 17.5% I believe. normally the pain is short lived.
wrong Bees boycotting the Honey.hmmm…
strange. How can the Bee live without Honey? without that constant cheap cash flow from the RBA….Bees shall support Honey.
Work more.
Pay more interest. more taxes.Bees are being attacked by a mite outbreak at the moment and may die :-/
you know the right thing would be to plan for a rainy day. you never know what the future brings and never put your faith in what someone says. stop blaming other people.
A hard NO. Govt gave enough free money to people during and for that reason everyone is going to pay more to balance it out. Action like this will create even more economic crisis in the longer run.
On a side note, free money given out was taken for granted by lot of scumbags and wasted, now everyone will end up paying for that.
Can we have a class action against Ozbargain? It made me spend money and now I'm poor.
Hahaha. You're dreaming. Welcome to the world for big people. Your problem if you over leveraged yourself on your mortgage. The world doesn't work the way you'd like it my boy.
Time to get a second or even third job OP
If this class action doesn't work, try another:
Class action against the banks for
preying onlending to stupid people who can't manage their finances and take any responsibility.Who do you think will end up paying RBA's costs of that class action? lol…
Good luck with that.
You do understand that the RBA has funds beyond all comprehension for top tier lawyers.
Funding for a class-action lawsuit would pale in comparison.If your already struggling with the rate increases then you should have never bought a house in the first place. Rates are still historically low and there is a lot of room to go up further
Atleast Philip should be sacked
Is it April Fool's already?
Clearly don't have anything better to do.
Not sure class action would result in anything.
Quicker to organise a riot and storm the RBA.
Bank run?
As protest, then everyone should withdraw $10 from the ATM,
every Friday, until the demands are met.
Slow bleed protest…hahaQuicker to organise a riot and storm the …
ring ring, hello donald trump is that you, we have a job for you
There is more drama in this thread than MAFS
Can we have this class action televised?
for classical economics stand point 👉 RBA = god, you can't sue god. it likes you sue your parents to bring you to this world 😜🌍!
however, you can choose different god to praise! like leaving your parents! always a solution 😂 for any problem 🤠
Are you a child? Just because someone promised? People and government promise a lot of things but never deliver them completely
OP please show us on the dolly where the RBA touched you
Central bankers have got a knack to use obscure language in order to communicate
Omg, lol. The RBA did most people a favour, because mortgage holders were able to negotiate better fixed interest rates based on the RBA's prediction that rates would remain low. Anyone who can't service the loan now obviously lied on their loan application, considering lenders apply at least a 3% margin when considering serviceability.
@OP
The comments aren't going the way you thought huh?
lol
If you didn't want to pay a lot of interest, you should have bought a cheaper house. Raising rates a year or 2 earlier won't make much difference to the overall amount of interest you'll end up paying if your house is so expensive that you need to sue the RBA when rates go up 1%.
If anything, the RBA should be sued by creating a housing price crisis and housing demand crisis by keeping interest rates too low for too long.
I did not have relations with that woman
ESL question: In Canada, in 2030 they say those of us who are alive will be 8 years older than now; how many dangling modifiers?
Caveat Emptor, son!
You can't sue the government for any of its policy decisions.
Legally, the government is considered to be a "sovereign" (that is, a monarch or a "King") and is considered to be effectively "above the law". This is just like a real-life King who would send you to the dungeon if you tried to sue him.
Even if the RBA was a private organisation that you could sue, it would still have a pretty solid legal defence that it didn't promise you anything. The actual RBA statement would include appropriate disclaimers saying that they wouldn't raise interest rates unless the economic conditions changed significantly. And in a court, they would just say that economic conditions have now changed, and therefore they have changed interest rates, and the case would then be dismissed.