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

[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

[kegi]

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Find a Job Dating Wine E-Editions Feedback My Stories

Sunday, Nov 22 2009 This Evening 8°C Tomorrow Morning 13°C 5-Day Forecast

 

 

Serious home loans alert as a surviving Lehman arm faces collapse

 

By Simon Fluendy

Last updated at 9:28 PM on 27th September 2008

• Comments (0)
  
• Add to My Stories
  

A little arm of collapsed bank Lehman Brothers could cause billions of pounds of mortgages to appear to go into default if it too fails, City sources have warned.

 

Capstone Mortgage Services employs 950 staff in High Wycombe, Buckinghamshire, and others at sites in London carrying out essential administration of home loans. If Capstone were to collapse, it would be impossible to tell whether borrowers' monthly payments had been made.

 

It was set up to run the back office for Lehman's mortgage brands SPML and Preferred, but now also provides services for many other mortgage firms.

 

With Lehman in Chapter 11 bankruptcy protection in America and its UK arm in administration and apparently without funds, there is a risk that Capstone could run out of cash, industry experts believe.

 

 

Lehman: The ripples of the bank's collapse have been felt far and wide

 

An unknown factor is any inter-company debt between Capstone and the Lehman parent company. Creditors worry that it may be pushed under by administrator PricewaterhouseCoopers instead of being ring-fenced to allow an orderly sale.

'If Capstone closed, there could be a huge knock-on effect,' said one source. 'There is no telling the full consequences.'

 

Ray Boulger, technical director of mortgage broker Charcol, confirmed the danger of the consequences of a collapse, but said he did not believe it would happen.

 

'The risk is there in theory, but I cannot believe that it will happen,' he said. 'I think Capstone is a highly saleable business.'

 

Another possibility is that the company's management will raise private equity funds to buy out the business.

 

 

 

 

 

The Financial Services Authority does not comment on individual firms, but a source said: ' Administration of mortgages is a vital part of the industry and a regulated part of the industry. The FSA is aware of the issues.'

 

Dan Schwarzman, partner at PwC, said he was determined to see an orderly sale. 'Capstone must not fail - it does very important work,' he said.

 

'The business is solvent despite inter-company debts of £88 million owed by other parts of Lehman balanced against £65 million owed by Capstone to other parts of Lehman.

 

'We are working closely with management to ensure an orderly sale process, which I think will take months.

 

'There have been multiple expressions of interest.'

 

 

 

 

 

 

 

 

Read more: http://www.dailymail.co.uk/money/article-1063354/Serious-home-loans-alert-surviving-Lehman-arm-faces-collapse.html#ixzz0XcAcKsLX

 

WHAT DO YOU MAKE OFTHIS THEN RYDE KEGI

[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

[I'm the bad guy?]

There is a specialist team in CH which has been dealing with the Lehmans bankruptcy. They have been receiving ongoing accounts from PWC of all the subsidiaries of Lehmans since Nov2008, EXCEPT the 4 mortgage lending companies-SPML/PML/LMC/SPPL.

 

The reason being if PWC were to disclose these accounts(some 2 years overdue), it would show that these companies are insolvent and hence in 'wrongful trading'. They could not bring an action against a borrower as it would be based on fraudulent 'trading'. Remember, they hold NO assets and all their funds have been transferred to the parent Mable Commercial Funding Ltd(in administration-PWC).

 

It necessary to expose this, to any investigating authority. SHUT'EM DOWN.

 

 

 

ITBG?

[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.

[JonCris]

quote

ryde

What capstone are effectively doing is squeezing everything they can out of the borrower deliberately putting them into arrears to line their own coffers diverting funds to themselves instead of the spv.

This is putting the spv into a situation where they are failing,liquidity funds have been refused hence all the notices to investors.

THIS SITUATION IS DOWNRIGHT CONSPIRITORIAL AND SHOULD BE MADE KNOWN TO THE INVESTORS IN A POSTING ON THE INTERNET.

That is a wild statement to make ryde without proof, as to the worlds top financial investors not being aware of such things I doubt that.

And where would that put the posting I made from a internet source that Capstone owe out 60 million pounds [not very good at it]

kegi

 

 

Not necessarily Lawyers in the States are already using this argument to stop repos "deliberately manufactured arrears"

[scedminc]

There is a specialist team in CH which has been dealing with the Lehmans bankruptcy. They have been receiving ongoing accounts from PWC of all the subsidiaries of Lehmans since Nov2008' date=' [u']EXCEPT the 4 mortgage lending companies-SPML/PML/LMC/SPPL.[/u]

 

The reason being if PWC were to disclose these accounts(some 2 years overdue), it would show that these companies are insolvent and hence in 'wrongful trading'. They could not bring an action against a borrower as it would be based on fraudulent 'trading'. Remember, they hold NO assets and all their funds have been transferred to the parent Mable Commercial Funding Ltd(in administration-PWC).

 

It necessary to expose this, to any investigating authority. SHUT'EM DOWN.

 

 

 

ITBG?

 

I have asked and am currently awaiting a response from CH as to why when I failed to submit my accounts on time for a dormant company I have that they are now proposing for it to be struck of while the likes of PML, SPML etc seem to be allowed to get away it. My accounts were just a few months overdue whereas theirs are years.

Edited November 22, 2009 by scedminc

[Crapstone]

I give up. Can't make people see the woods for the trees. All too busy trying to be a goliath when then aren't even a puss-in-boots. Like a bunch of nursery children and if that's the way you want it carry on.

 

I've done my bit and will continue to fight on but can't be doing with arguements and raking over the same old ground time and time again.

 

I have a brain and I can use it, so can you lot.

[JonCris]

Crapstone Wot!!

[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

[Crapstone]

Look on Capstones website ..all the same for all lenders they have. They haven't yet updated it for the new lot of fees.

 

http://www.capstonemortgageservices.co.uk/capstone/customer/Tariff.aspx

 

Make a fuss otherwise you get nothing. Been fighting them for 6 years so should know a thing or two by now.

 

Ignore me JonCris..I was just ranting..I'm having some brain drain problems possibly through stress. Weird feeling and not like me at all to be that way. I will get over it and be back on form....I just have to kick myself harder.

Edited November 23, 2009 by Crapstone
added a link

[Suetonius]

Look on Capstones website ..all the same for all lenders they have.

 

Site Map

 

Make a fuss otherwise you get nothing. Been fighting them for 6 years so should know a thing or two by now.

 

Ignore me JonCris..I was just ranting..I'm having some brain drain problems possibly through stress. Weird feeling and not like me at all to be that way. I will get over it and be back on form....I just have to kick myself harder.

 

I think you have more than enough on your plate at the moment..

 

I hope you have good news soon

[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

[sherry_d]

Reading this thread has reminded me of my dealings with SPML when they repossed my (or their) house of the 25th of November 2006

 

They were so many tears dealing with them and in a strange way it was such a relief not to have a mortgage with them any more....

 

They lent me £104K and they sold property for £116K and they netted £113K on top of my repayments for over 2years and all that was left was about £200 no wonder they are in the business of repossessing as quickly as they can.

[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

Edited November 23, 2009 by ryde

[ryde]

deleted

Edited November 23, 2009 by ryde

[ryde]

deleted urgent medical advice required

Edited November 23, 2009 by ryde

[enoughisenough]

Apologies to Eagleforms.

 

I have not been able to make any contributions but should be able to do so shortly. There is nothing ultra significant in the stuff you PMd me with. It's a routine confirmation that they are looking into your specific complaints. The person you named is well known to me. There will be another letter soon telling you they need more time, followed by a further letter 'justifying' the extortionate and outrageous charges designed to put you in default and thereby remedy 'your breach' through a manufactured repossession.

 

Your only hope is to let them know that you fully intend to go to the ombudsman if any of the points is not resolved to your satisfaction. However you will have to wait and hang on on in there until you get their final 'eff-off' letter.

 

Once again apologies for not coming back sooner.

 

On all the other stuff....please. Keep on message.

[eagleforms]

Thanks EiE

I am not holding my breath about getting a reply that gives any decent explanation at all. However, the judgement this week about excessive bank charges could give me the basis of a complaint to the OFT.I am also fighting Barclays who seem just as vicious as the sub primers when it comes to charges and repos. They have charged me interest for 5 months on arrears that have been paid back, charged £40 a month for 2 years because I was in arrears and over £5000 in misc charges that they will not give me details of. They are all as bad as each other but in Barclays case, they are a global organisation and just seem to simply ignore all the regulatory bodies, and the courts. At my repo hearing, the judge stopped the repo but gave me an order to pay no less than the monthly repayment and then to repay the mortgages by 2011, as these are interest only mortgages amounting to over £130,000, we will have to sell the house we have lived in for 23 years. The clerk they sent along, who had just left college, told the judge he was wrong and demanded an appeal, which he denied, however, they got one agreed by the judges boss on the grounds that it could be an important case and Barclays would get it heard one way or the other. Luckily, my son lent us the money to pay the arrears last May but Barclays still charged us interest on them until October. Nothing short of theft.

We have put in a complaint with the FOS (the FSA didn't want to know) and they have told me that it will probaby take 6 months before they get around to doing anything about it. That is why I think that the OFT route with SPML will be better. In fact I am thinking about putting in the complaint now because just publishing the set of charges that they have seems to me cause enough to compalin.

From my humble point of view, I think that ferreting around trying to find who own who, securitisation, prospectises etc, will not get us anywhere. If the combined brains on this thread cannot agree about what they mean, do we really think that a case worker at the FSA, FOS etc,will be able to untangle the sorry mess. Don't forget that these entities don't do anything without first consulting lawyers who are well versed in pulling the legal wool over everyone's eyes. We don't have the resourses to even get a barister's opinion on the case, let alone hire one to be our advocate in court. Cabot et al know that we haven't got a pot to p... in between us, which is why they know that they can get away with their outragous actions.

In my opinion, the only way that we can get them off our backs is to look carefully at our loan/mortgage agreements and if we are in danger of being repossessed, look at case law that would give us precidents to use in court (clearly, if ryde, who seems to be driven demented by his present position, for which he has my every sympathy, is only 1 month in arrears, a court won't countenance a repo because they can only take action if he is 2 months in arrears, unless, of course, they have a suspended repo order. Clearly, he can pay his monthly mortgage and I guess if pushed, a monthly contribution to his arrears, spread over the remaining life of the mortgage, google Norgan's law for details, be careful, because arguments have been put forward about the reasonable time over which repayments can be made.

If some of the clauses in our loan/mortgage agreements are patently unfair to us borrowers, then we can argue that the contract is unfair and must be redrawn. It won't stop the fact that we owe the money but might make it easier to repay without being hit by manufactured charges to put us further in arrears. I know the OFT are interested in unfair contracts because I spent 18months wrangling with them about an assured shorthold temancy agreement that I sell, mainly over whether the landlord had the right to stop his tenant having a pet, all because some German took his landlord to court because he wanted to keep a goldfish! I think that what we could unearth from our agreements could be far more important that a bl.....y goldfish.

My advice would be KISS (keep it simple, stupid).

Let me know whether I am talking nonsense.

Edited November 23, 2009 by eagleforms
typos again

[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.?

[wonderman]

Sherry D, it is good that you shared the facts of your repossession experience with us. From those facts it is easy to see just how profitable being in the repossession business really is. Unfortunately, our courts still seem to think that these lenders are in the "mortgage" business. No - they are in the "respossession" business because that is far more profitable than being in the mortgage business.

 

Additionally, our courts still look at these (repossession) lenders as being the "victim" of a defaulting mortgagor...and these poor old lenders are just asking for their lawful remedy of repossession. The courts have not realised that the old paradigm has changed. They don't realise that it is not the lender who is the "victim" it is the borrower! The borrowers need the courts to understand that the mortage finance landscape has had a revolutionary change (pun intended). Until the courts and judges all begin to understand the theft being perpetrated against the borrowers, the lenders will continue to get away with it.

 

Does any one know of even one case were a borrower has prevailed against a lender? Other than the Wilson case which was for a small loan, I do not know of, nor can I find, even one example where the court has held against a lender. This means that the courts will always have the lender "win" and the borrower "loose". That is the rule. As for truth and justice, well, the courts pay very little heed to those values, the rule that the lender wins and the borrower looses always prevails over truth and justice.

Edited November 23, 2009 by wonderman