SPML/LMC anyone claimed for mis selling and unfair charges?

[ryde]

reposted

Edited November 22, 2009 by ryde

[ryde]

House of Commons - Mortgage arrears and access to mortgage finance - Treasury

shows arrears fees etc being charged by various lenders including capstone

 

http://www.thisismoney.co.uk/news/opinion/article.html?in_article_id=489382&in_page_id=19&in_author_id=1865

Take specialist mortgage lender Preferred, which charges a monthly 'arrears management fee' of £60.(now £115)

Preferred exists only in name now and the agency that handles the remnants of its business, Capstone Mortgage Services of High Wycombe, Buckinghamshire, was unable to explain how that £60 was calculated. (surprise,surprise)

If a borrower has equity in his property, it appears not to matter to some lenders how much the arrears mount up.

An eventual repossession and sale will see the lender right and to hell with the homeowner.

Only cynicism on this scale can explain the outrageous approach of some lenders. Citizens Advice, for example, cites the case of one woman who, although she was making monthly payments towards her mortgage, was still being charged the £50 monthly arrears fee.

When she asked the lender for help it sent round its own debt counsellor - and charged her £100 for the privilege.

Charges mount even more steeply and bewilderingly when repossession is under way. Someone needs to change locks on the repossessed property? Oh well, just charge £400 to the homeowner's bill and another £50 for managing the process and then rack up interest on the lot.

Last week, Financial Mail saw one repossessed borrower's final statement. The property was sold for £85,000 but the estate agent's fees were £4,055. Who pays 5% when estate agents generally charge about 2%? Clearly, those who can least afford it.

Edited November 22, 2009 by ryde

[ryde]

Deleted

Edited November 22, 2009 by ryde

[ryde]

kegi

We've all seen this story ,it never happened, we're all a year on and they are all still going strong they've been ringfenced like it says in the report.But now the investment funds are failing.

My object is to make the noteholders aware of why they are not getting their payments because capstone are taking an ever bigger cut before they ever see their payments and such a cut is totally unjustified from all points except capstones of course.

Like it(e)bg am trying to whip up some direct wholly justifiable action.!!!

Edited November 22, 2009 by ryde

[ryde]

good on yer itbg action now from every angle not words.Hasn't everybody had a bellyfull of this lot if we pulled a [problem] like this we'd be in prison for years.

[ryde]

Can someone please post Capstones arrears and administrative fees or do they vary between customer.From previous reading if you make a fuss they appear to arbitrarily reduce them,people who don't make a fuss get full whack (and I bet theres a lot of them)

We don't appear to be able to apply enough pressure to them as the regulators take too long if they act at all.

If the investors aren't getting their full payments because they are being shortchanged at the collection end by crazy charges I'm pretty sure they will do something about it.So theoretically capstone will be squeezed from both sides and asked to justify their fees,what would you do if you were a whopping great pension fund with enormous legal clout and you found out you were not getting your dividends because the collector was milking off large chunks in fees from the payers (US) before it ever got to you?

scedminc

one rule for one.: put the same argument to CH and ask them why different rules appear to apply

joncris quote

"deliberately manufactured arrears"

This is exactly it additionally add "and fees and charges"

Edited November 22, 2009 by ryde

[ryde]

crapstone

Haven't got a mortgage with these so cannot quickly understand how it works.Please educate me.

They can instruct a solicitor once you are a month in arrears?

You then have to pay ALL these fees ie £200!(60 +25+115) per month before you've paid anything towards your arrears!!!

This would support about an £80000 interest only mortgage at normal rates

This would be staggering.

You only have to miss one payment to incur these charges?

 

posted below from your link spml charges.

 

Arrears Management Fee1 £60.00

Charged each month when, at close of business on the last business day2 of the month, the arrears balance on your mortgage account is equal

to, or greater than, 1/3rd of your current monthly payment due3, or we have received notification from another Lender that they have taken

possession of the secured property.

Late Payment Management Fee1 £25.00

Charged each month when, on the 10th (calendar) day of the month, the arrears balance on your mortgage account is equal to, or greater than,

1/3rd of the current monthly payment due3 (if your account is below this limit on the 10th (calendar) day, no fee is incurred).

Litigation Management Fee1 £115.00

Charged each month when, at close of business on the last business day2 of the month, the arrears balance on your mortgage account is equal

to, or greater than, one current monthly payment due3 and we have instructed Solicitors to begin legal proceedings.

Repossession Management Fee1 £175.00

Charged each month to your mortgage account where your property is taken into possession and remains in possession until the property is

sold.

Third Party Fees Varies

In addition to the above, you will be required to pay all costs we pay to third parties to recover any money owed to us or to protect our security

or legal rights, e.g. Debt Counsellor appointment4, Solicitor’s charges. Where applicable, we will advise you before we instruct a third party.

1

Edited November 23, 2009 by ryde

[ryde]

sherry d

backstreet loansharking given a respectable front,blo.dy outrageous and still going on 3 years after your repo and countless others.If you're not in arrears they will soon make sure you are.

Edited November 23, 2009 by ryde

[ryde]

YET ANOTHER STORY

 

I had been with Preferred Mortgages for a couple of years and suddenly began to receive letters from Capstone Mortgages about my account - they were saying I was in arrears by one month. I continually called them to find out about it, because I knew that my mortgage left my bank account the day after I was paid and that there was no way that I could be behind. The call center staff had really a really bad attitude towards me when I called and I have been called a liar on many occasions by them - they would never give me details, just tell me I was behind. I had never been told who Capstone Mortgages were - I had never heard of them until I got these letters, and the call centre staff were not forthcoming with an explanation when I asked!! Now I find myself in receipt of court action to repossess my home - all because of one alleged missed payment - which when I spoke to someone recently about it, they couldn't actually pinpoint which month I owed for - he told me it was best if I produced statements for Jan, Feb and March of last year!!! I have had to take a huge cut in pay recently, and yet I have made sure that my mortgage payments are paid and now I'm faced with eviction because Capstone/preffered mortgages reckon I owe them one month's money.

 

NEVER NEVER go with this company!!!

 

HOW LONG ARE THEY GOING TO GET AWAY WITH THIS

Edited November 23, 2009 by ukaviator
Removed links

[ryde]

deleted mental problems insomnia and capstone on the brain

Edited November 23, 2009 by ryde

[ryde]

deleted

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[ryde]

deleted

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[ryde]

deleted urgent medical advice required

Edited November 23, 2009 by ryde

[ryde]

eagleforms

thanks for sympathy drives you crackers with frustration if you think about it long enough.FOS is so busy will probably take longer than 6 months but from my experience any litigation is usually stopped pending their findings so well worth the complaint.

My latest cunning (crazy) plan is to get the investor side to question capstones outrageous policy of charges which I believe significantly reduce the proper flow of capital from us to them, if someone has got arrears how can you expect them to suddenly find these AND an additional whopping great fee on top they wouldn't have the arrears in the first place if they could afford the loan which should be restructured, its a long shot I know but got to give it a go.Capstone charge more than any other lender.Why doesn't the media get onto this.?

[ryde]

kill'em all-let Super sort'em out!

NO MERCY.

ITBG?

SSF

Thats what you call fighting talk!!!

ITBG are you a latter day guy fawkes?! if so can I join the plot? I am good under torture.Meet you in High Wycombe at midnight.!

Edited November 23, 2009 by ryde

[ryde]

scedminc

excellent post and thanks.

What time scales are we talking about here.ie your last accounts as opposed to their last accounts. The last time that lot filed accounts were on 30/11 2006 the next set being due on 30/10/08 and are over a year overdue for gods sake,what about yours.

You're in a better position than most because you're on the inside with a real genuine gripe.

"CH say there is currently no removal action as they have been sent a reminder of their duties",that must have incredibly have been over 2 years ago and they still haven't complied.This is a line and an angle we must pursue especially as they are threatening you with something they are completely unwilling to implement on someone who has continuingly and blatantly ignored their requests and the applicable rules.This must give you and possibly us some real leverage.

Edited November 23, 2009 by ryde

[ryde]

Here is relevant legislation:re late posting of accounts

Updated September 2009

The Companies Act 2006 ('2006 Act') has introduced changes modifying the deadlines for filing and the penalties for the late filing of statutory accounts at Companies House. This new regime of penalty charges and revised deadlines came into effect on 1 February 2009. In light of the changes, a number of points should be borne in mind when considering the preparation and submission of annual accounts.

Revised filing deadlines

Under the 2006 Act the deadline for filing accounts for financial years beginning on or after 6 April 2008 has changed:

 

• Public companies will now have a period of six months (as opposed to seven months under the old regime) from the end of the relevant financial period in which to file accounts at Companies House;
  
• Private companies have a period of nine months (as opposed to 10 months under the old regime) to file the same.
  

Slight changes to these deadlines may occur should the accounting period in question be the company's first or in the event that the company changes its accounting reference date during the financial period in question. It should be noted that limited liability partnerships are treated in the same manner as a private company in this regard, with the time period for filing having also been shortened by one month to nine for financial periods commencing on or after 1 October 2008.

The new penalty regime

Directors may incur personal criminal liability for a failure to file accounts on time. All those persons who were directors of the company during the financial period following which the accounts are filed late are potentially liable to a fine of up to £5,000 and an additional daily default fine of £500.

Should the directors of a company fail to file accounts within the statutory time period, and fail to remedy the default within 14 days of service of a notice to comply, the courts have the power under the 2006 Act to make an order directing the directors to make good the default within a specified period. An application can be made by any member or creditor of the company or by the Registrar of Companies. The 2006 Act also provides for cost sanctions in connection with the application to potentially fall on the defaulting directors.

Directors should also be aware that the failure to file accounts within that specified period could, under certain circumstances, amount to a breach of their newly codified statutory duties under the 2006 Act, in particular:

 

• duty to promote the success of the company; and
  
• duty to exercise reasonable care, skill and diligence.
  

Any breach of the above duties could leave directors open to an action being brought against them by the company.

In addition to the directors' personal liability, and the ability of the court to make an order as set out above, companies are also subject to increased penalty charges for late filing. Any such liability will be in addition to any personal liability incurred by the directors.

The penalties are set out in the Companies (Late Filing Penalties) and Limited Liability Partnerships (Filing Periods and Late Filing Penalties) Regulations 2008 and apply as shown in the table below.

Late by Private Company/LLP Public Company Not more than one month £150 £750 More than one month but not more than three months £375 £1,500 More than three months but not more than six months £750 £3,000 More than six months £1,500 £7,500 Companies should be aware that these new charges represent a 50% increase from the previous levels (last set in 1992) and that the penalties for accounts filed more than one month late increase more quickly than under the previous regime. It should also be noted that in an attempt to deter repeated non-compliance, the penalties will double for any company that files its accounts late in the previous two financial periods, where the previous period commenced on or after 6 April 2008.

Practical steps to take

Early consideration should be given to the preparation and filing of annual accounts so that potential difficulties can be identified early and so be less likely to affect the filing date. Wherever possible accounts should be filed well before the applicable statutory deadline. In order to ensure that the accounts have actually been received by the Registrar of Companies, companies should seek confirmation that the accounts have arrived safely by way of a simple telephone call or by the inclusion of a copy letter and request it be endorsed by Companies House by way of receipt.

Other consequences

Beyond the potential personal liability of directors and monetary penalties, companies should consider the negative impression made on their customers and creditors by the filing of late accounts, especially within the present financial climate. This will be of particular relevance in the current financial downturn where a failure to file accounts may trigger defaults under finance or credit agreements. Such a disruption to the flow of credit into the company may have serious consequences for the company's continuing ability to trade and could represent a risk to the immediate future of the business.

Summary

The new penalty regime under the 2006 Act has been designed to reduce the problem of companies filing annual accounts late. In the first instance the penalties potentially represent a significant financial burden (particularly for small companies). However, companies should look beyond this to consider the wider commercial implications of late filing on their image and reputation as well as under any credit agreements.

Directors also need to be increasingly aware of the risk of personal liability arising on their part, which should provide a strong incentive to ensure systems are in place for the timely delivery of annual accounts.

 

-------------------------------------------------------------------------

So when do you get to the struck off/disolution stage as is scedminc.

If you are insolvent the last thing you're gonna do is file accounts showing that you are as in this case.

Edited November 23, 2009 by ryde

[ryde]

Can someone tell me when you miss one payment how much you have to pay capstone in total because you are 1 month in arrears? and they have instructed a solicitor,ie what is the maximum amount you,d have to pay.

Also having a quick look at the law seems there is no mandatory striking or dissolution of companies for not filing acounts on time just escalating fines and consequences for the directors.

Edited November 23, 2009 by ryde

[ryde]

ITBG

No not yet

eagleforms

Out of desperation trying to explore in vain hope perhaps every possible avenue.ITBG in his defence is probably under the same pressure as most or he wouldn't be here.

He's just a loose cannon but at least for most of the time he's pointed and is firing on all barells directly at the right target.!!!(CAPSTONE AND PALS)

Edited November 23, 2009 by ryde

[ryde]

eie

thanks for that and your efforts in annotating the relevant parts.

quote:

This proves two points. Firstly that Preferred have sold the mortgages to the 2008-1 company and secondly, that Preferred have suffered NO LOSS and therefore, as JC advises, there is NO LOSS for the court to remedy and thus, Preferred have NO CLAIM. They have been fully paid for the FULL amount of the balance on your account.

Until the legal interest of the Issuer or, as the case may be, the Trustee, has been perfected, the Issuer, or as the case may be, the Trustee may also need to join the relevant Legal Titleholder in any legal proceedings taken against the relevant Borrower. The Borrower is also entitled to set-off (or exercise any analogous rights in Scotland) any amounts owing to the relevant Legal Titleholder in respect of such Loan against any other amount owed by the relevant Legal Titleholder to such Borrower.

 

Is this not saying if the legal titleholder cannot take action against the mortgagor the trustee or spv will join in the action(would just entail a transfer of the legal title from pml to trustee or spv)so although pml may have no claim because they have been paid,the spv will have title transferred and take up the same action,so whatever the case from every angle we're stuffed,on this point.

Will look through rest later

[ryde]

eie

hoping flattery will get me everywhere.

Could you apply your excellent analytical mind to my conundrum.

pml are trying to register their legal title on a property on which i have a restriction preventing this.

If they have securitized the mortgage which they deny ,they have been paid and have no title to bring a claim as they are not the legal titleholder(because the title has not been registered both they and the spv to whom they sold the loan are equitable owners,in fact they aren,t anything because they have sold it!!!! suppose thats why they are denying the loan has been securitized!!!!get your head around that one! driven me to the brink of insanity.

eie:quote.

I'm all up for cranking the pressure up on the barstewards.

I'll second that, just keep ITBG pointed in the right direction he's out for blood and mayhem,sounds like he has a transcript of capstones motivational speeches to their staff and has adopted their battle cry.

NO MERCY!

Edited November 24, 2009 by ryde

[ryde]

SCED

Ask Companies house why pml etc are receiving preferential treatment?

If capstone are collecting all these arrears fees and charges for spml/pml they should be being paid directly into their bank accounts,one possible reason why they haven,t submitted accounts is that all these charges ARE NOT IN FACT BEING PAID INTO THEIR ACCOUNTS WHICH AMOUNTS TO FALSE ACCOUNTING AND TAX EVASION.

CAN someone please post exactly how much they are paying in arrears fees for missing 1 payment and assuming capstone have instructed solicitors.Whats the maximum they can charge you.??

[ryde]

I have personally been flailing about with this whole concept for many months now (to the brink of certification!) and think I am at last beginning to get a grip on the whole concept relating to this situation and these lenders.Please correct me if I am wrong.

1)SPML/PML have submitted no accounts since november 2006,question has to be asked why? They are being administered by auditors for chrissakes,why incur uneccessary penalties?

2)Their various parents Lehmans,Mable funding etc are all in administration

3)Eurosail in its various identities is unable to service its investors hence all the posted notices,the liquidity funds have dried up.

4)Capstone are diverting vast sums by way of arrears charges and fees from the mortgage payments due to the spv .

5)These arrears fees are supposed to be collected for and paid into the originators account(ie spml/pml) but I believe capstone are swallowing them up as administrative fees and as a tax avoidance scheme(capstone have 450 employees spml/pml have none)

6)The paper company originators are being kept afloat as their failure would see the legal titles of the mortgage portfolio passing to the spv and a huge sdlt bill.

To all intents and purposes this appears to be one huge tax [problem] with the mortgagors,the spv,hmrc and consequently the investor as the victims.The only winner being capstone.

Edited November 24, 2009 by ryde

[ryde]

ITBG

Think you've frightened everyone off!!

How about the Revenue angle?

Massive tax evasion here I am sure, one big reason for no accounts,haven't cooked the books properly yet.Bet all the arrears fees go straight into capstones account as admin charges rather than spml/pml account.Also bet spv payments are dwindling daily,capstones chunk getting ever larger , they're not inventing arrears to pay the spv thats for sure.

Edited November 24, 2009 by ryde

[ryde]

eie

In support of my post which is a value judgement I submit this link for both your and other caggers consideration.

here: for just one of the eurosail vehicles and there are many more.

http://www.investegate.co.uk/articlePrint.aspx?id=200910271647404673B

 

this is prime ie a+ rated mortgagors some 300 million pounds worth, liquidity facility provider has refused to provide liquidity,why the request by the spv? because the fund is not servicing the returns to the noteholders.Why ? because of mortgagors default either personally or this is caused/created directly by capstone and administrative costs/charges levied on accounts reducing payments to the spv at source,what other reason?

Edited November 25, 2009 by ryde