Is Your Loan LIBOR Pegged? Five Alabama homeowners have filed suit against a large group of lenders, BofA, Barclays and Citibank chief among them, for allegedly rigging the LIBOR rates that their mortgage loans are pegged to. The basis for their claims is simply that, if proven, the alleged rigging of the rates on their loans cost them a great deal more money than they otherwise would have had to pay without rigged interest rates. Who's right? Were their rates rigged? Those answers will have to wait for a court trial. However, if your loan is LIBOR-based and provided by one of the named lenders, you may want to have someone such as a lawyer and/or accountant review your loan documents and then compare them to the LIBOR rates that existed at the time of your loan. For that, you may also need to enlist the help of a banker from one of the large banks NOT named in the suit. Aside from extra costs, such a rigging could conceivably contribute to a foreclosure if the increased rigged cost made it difficult or impossible for you to pay your mortgage. Hoping you aren't a victim, Good Luck in your investigation.