What is it with the rules around some building societies where they are allowed to get away only providing financial services to local people. Is this not a contravention of some EU Law - free movement of goods/services? Or is this some quirk of BS legislation?
Don't think so. As far as I'm aware, that EU law says that the government can't prevent building societies from providing services to everyone if they want to. It doesn't force them to.
example?
Ipswich Building Society:
a few in
" You may find that if you live near a lender you will be offered a better rate. Melton Mowbray Building Society is among the lenders that offer their best deals to local borrowers. Its Community Portfolio, available across a range of Nottinghamshire and Leicestershire postcodes, is priced differently from its normal mortgage range."
etc
Phil
That's how the BS started. How about the old Temperance ones? Should they have to lend to foul mouthed lads/ladettes? :)
I would be surprised if their *membership* rules contravene EU directives. If I don't like the look of you, why should I let you join my club? :)
I doubt it. A milkman can serve only one area, Cable TV outfits don't have to provide service everywhere etc.
It would be wrong for someone to restrain the BS from providing that service, for example if the Royal Mail refused to deliver its letters outside those postcodes it would be a restraint of trade (not to mention a breach of the RM licence conditions).
Phil
Kind of makes the EU laws on free movement of services and trade a farce then, doesn't it?
not really, you can move to those postcodes (free movement / right of establishment) and the govt doesn't prevent the building society offerring them to you, its their choice. Freedom to trade not compulsion to trade. Probably made worse by a Building Society being based on membership.
Can I demand that a Swedish broadband company provide by with a
10Mbits/s connection ? No.Phil
But I think you're argument is flawed in so much that the goods/services you are highlighting are able to be provided because the barrier to trade is physical and a Swedish broadband company cannot provide you with a service - whereas, you could live on the moon if you wanted to and you should still be able to access a savings product from a bank or building society - but not Ipswich, evidently!
At the time of the great demutualisation my kids were opening BS accounts all over the place and quite a few refused on the grounds that my kids lived out of the mutuals area. smicker
why not ? thet can come and wire it up here just the same as anywhere ?
Phil
"Neaco" wrote
Not at all - you are looking at it from the wrong side!
The EU laws will allow the BS's to provide services & trade where they wish to (emphasis on where *they* wish to!).
*You* also have free movement, but *you* cannot force *others* to move their services & trade where they don't wish to!!"Neaco" wrote
Of course, but only if the bank/BS wished to trade with someone living on the moon. It would cost far too much to send out the statements!
indded
Phil
I see that they've thought about that. On their website they say: From 2 October 2000 all new members opening share accounts must sign a declaration agreeing to assign any future windfall rights to the Charities Aid Foundation for five years from the date of account opening.
Are there many mutuals left, I wonder?
In message , Neaco writes
No.
AS I understand it, the EU rules mean that a state cant prevent a business from another EU state from trading in that state. But it DOESNT enforce anybody to have to trade pan europe if it doesnt want to.
Vernon Building Society : "Please note - we will only accept account applications from within our operating area (25 mile radius of Stockport)"
There have been several that restrict themselves to certain areas.
Usually only small BS will do so - they don't have a massive number of savers so can't offer nationwide mortgages (they simply don't have the money to lend out). They do offer some good deals at times. Worth checking on whether there is a small one in your area.
No-one ever said that local companies had to offer their services to the entire country.
Martin <
goods/services?
Membership always discriminates. Against non-members at least. No lender HAS to lend you money. If you don't meet their requirements, they discriminate you by not lending. On the other hand, its not your money thats being risked, its theirs.
Martin <
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