Redstone/HML: Why can they get away with it?

[JMJVB]

There have been many comments on these forums regarding sub-prime mortgage companies and the devious ways in which they operate. Why are they still getting away with inflicting misery on countless homeowners? So many oblivious borrowers have been duped into taking on what they think is a "mortgage" with Redstone or Kensington, without knowing that it is not a mortgage at all but a securitised debt, and that Redstone etc. are not mortgage lenders but glorified debt collectors. A company called Homeloan Management runs these imaginary mortgage companies and collects the monthly payments, without the innocent borrower ever finding out unless they happen to read these forums. Their sole aim is to repossess their victims' properties, which they will do without negotiation as soon as the victim falls into arrears by 2 months.

PLEASE, is there no way that those of us who have been led into this trap can rise up and do something to have these companies stamped out? What about an online petition to the government, or a campaign in the newspapers to spread as much information as possible to the public about what is going on?

The FSA turns a blind eye. Despite complaints, they have done nothing. The government either does not know or does not care, same with the judicial system. I read yesterday that Redstone are now trying to repossess an animal sanctuary. How low can they stoop?

Let's unite against **** like this NOW. A mass protest is needed. Even now, more unsuspecting people are being sold "mortgages" with Redstone, and in doing so are giving up their chance of ever owning their property, are taking on a huge unmanageable debt, and most probably signing away their homes.

[scedminc]

Well said I think.

[midge61]

I have written to my MP about this and he has written to the Chancellor.

 

Am awaiting their reply.

[scedminc]

Hi Midge is it a general letter or just personal to you. If just general then maybe you should but it up and i and others can send it to there MP's as well?

[midge61]

Hi

 

This is what I sent:

 

I am writing to you to ask why no one is putting pressure on the sub prime lenders to lower their interest rates.

Every day in the press we read that the High Street banks are being told they must do more to help borrowers but nothing is being said to the companies who through their greed and bad practices have caused part of this financial crisis.

There are companies such as Southern Pacific Mortgages Limited, Kensington, and Preferred Mortgages that are still charging their borrowers high interest.

I have a mortgage with SPML and fortunately it is relatively small, but they charge 4.25% plus LIBOR so when my fixed rate ended in May I was paying nearly 10%. When I took out the mortgage I was not told what would happen to it, i.e that after 3 months it would be securitized and traded. I was unaware that the company, Capstone Mortgage Services that I make my payments too were nothing more than debt collectors. Capstone are not able to offer any help to lenders, they are not allowed to alter the terms of the mortgage to capitalise arrears or offer payment breaks or any of the help offered by prime lenders.

There are also the sub prime secured loan companies such as Welcome, Blemain finance, Firstplus and more. These too are charging interest rates of 14% on average but also refuse to lower them. I have a secured loan with Blemain and when I asked why their rates remain so high I was just told that their rates are not linked to BOE and they were not in a position to cut them.

There are many people with mortgages and loans with such companies who are now struggling and many are facing eviction but it seems nothing is being done by the powers that be to put any pressure on them.

Most of us who have been unfortunate to have these loans are not greedy borrowers but have been put in the unfortunate position of being told by bad advisors, who gain huge commission payments that these were our best options.

I feel that as these companies have been the cause of much of this crisis and should be closed down and as a result forfeiting any gains they make and the borrowers should have their interest rates cut to 0% for the remainder of their agreements.

Yours sincerely

[JMJVB]

Thanks Midge for the sample letter. I have sent a similar one to my MP today.

[brassed-off-2]

Thanks Midge,

 

I will be using this in a similar way, if you dont mind, and posting to my Local Lib Dem councilor plus my local MP.

 

Can you point me in the right direction, for a letter to FOS regarding arrears management fees and exessive charges on the mortgage account too, and anyone else really, where i will make a few waves too ??

 

Kind regards

 

B-O-2

[midge61]

Hi

 

I have actually put in a complaint against my mort company to the FOS but I don't know if they would take much notice of a letter.

 

I suppose we could write to the OFT but again they don't deal with individual complaints but if they get enough I suppose they should look into it.

[JMJVB]

Hi Midge, is there some way we can all write a collective letter to the OFT to make them do something? As you say, they will take no notice of individual letters.

[brassed-off-2]

You can deffinately count me in, Anything that will get the powers to be to sit up and take notice and get join the real world !!!!

[JMJVB]

Hi, to all of you out there who are willing to get together and make a stand against Redstone and other sub prime companies. I am willing to write to the OFT and make a collective complaint on your behalf. If you would like to PM me I will send you my address for you to send your own complaint/grievance/story. I will then send them all off en masse to the OFT and see if we can get something done to bring these parasites to justice. Anything is worth a try!

[midge61]

Great idea

 

Will pm you later.

[brassed-off-2]

Hi Guys, Great idea JMJVB !

 

Having just fought (with a lot of help from the great people on this site) the 2nd notice of eviction from SPML last wednesday and just getting back to some normality from it, Could you giv me some guidance as to what things i need to include in my statement that would help the cause ?

 

Help really appreciated, thanks.