Homeowners for Justice & an end to unlawful Repossessions By UK based bankrupt Lehman Bros Entities
Monday September 9th 2013

Archive for January, 2011

Calling time on Capstone…

Hi James…and welcome. I think I CAN explain. The truth is that we thought that the regulators were impartial and that the courts were fair. But neither of them are. As far as the regulators are concerned  we are utterly expendable. And as far as the so called [Read More]

Nailing the big lie…and telling the truth

Nailing the big lie…and telling the truth

I was asked the other day if I could translate the following notice made December 2009 from financial Klingonspeak into English. It’s taken a couple of days to do so and during the process I had a blazing insight which I’ll share with you all in a moment. The [Read More]

And now, back to the beginning…

And now, back to the beginning…

I hate to be the one to reignite an old debate but one way of looking at the recent “transfer” of ownership of the SPPL loans to various Eurosail entities is that it was nothing more than a vacuous exercise in impression management. These were after all loans [Read More]

Mortgage Conduct of Business Rules

MCOB 13: Arrears and repossessions is of particular importance in the context of mortgage litigation:

13.1 Application

Who does it apply to?

Mortgage lenders and mortgage administrators (and firms that were mortgage lenders or mortgage administrators before the sale of a repossessed property took place).

13.2 Purpose

What does it do?

It applies the provisions of MCOB 13 with respect to administering a regulated mortgage contract, and administering a mortgage shortfall debt

It amplifies MCOB 6 (duty to treat customers fairly) in respect of the information and service provided to customers who have payment difficulties or face a mortgage shortfall debt

13.3 Dealing fairly with customers in arrears: policy and procedures

(1) A firm must deal fairly with any customer who:

is in arrears on a regulated mortgage contract; or

has a mortgage shortfall debt

(2) A firm must put in place, and operate in accordance with, a written policy (agreed by its respective governing body) and procedures for complying with (1).

13.3.2 Policy and procedures: content

A firm should ensure that its written policy and procedures include:

(a) using reasonable efforts to reach an agreement with a customer over the method of repaying any payment shortfall or mortgage shortfall debt, in the case of the former having regard to the desirability of agreeing with the customer an alternative to taking possession of the property;

(b) liaising, if the customer makes arrangements for this, with a third party source of advice regarding the payment shortfall or mortgage shortfall debt;

(c) adopting a reasonable approach to the time over which the payment shortfall or mortgage shortfall debt should be repaid, having particular regard to the need to establish, where feasible, a payment plan which is practical in terms of the circumstances of the customer;

(d) granting, unless it has good reason not to do so, a customer's request for a change to:

(i) the date on which the payment is due (providing it is within the same payment period); or

(ii) the method by which payment is made;

and giving the customer a written explanation of its reasons if it refuses the request;

(e) giving consideration, where no reasonable payment arrangement can be made, to the customer being allowed to remain in possession to effect a sale; and

(f) repossessing the property only where all other reasonable attempts to resolve the position have failed.

13.3.9 Record keeping: arrears and repossessions

(1) A firm must make and retain an adequate record of its dealings with a customer whose account is in arrears or who has a mortgage shortfall debt, which will enable the firm to show its compliance with MCOB 13.4 (Arrears: provision of information to the customer), MCOB 13.5 (Dealing with a customer in arrears or with a mortgage shortfall debt) and MCOB 13.6 (Repossessions).

(2) A firm must retain the record required by (1) for a year from the date on which the relevant payment shortfall or mortgage shortfall debt was cleared.

13.4 Arrears: provision of information to the customer

If a customer falls into arrears on a regulated mortgage contract, a firm must as soon as possible, and in any event within 15 business days of becoming aware of that fact, provide the customer with the following in a durable medium:

(1) the current FSA information sheet on mortgage arrears;

(2) a list of the due payments either missed or only paid in part;

(3) the total sum of the payment shortfall;

(4) the charges incurred as a result of the payment shortfall;

(5) the total outstanding debt, excluding charges that may be added on redemption; and

(6) an indication of the nature (and where possible the level) of charges the customer is likely to incur unless the payment shortfall is cleared.

13.4.4 Customers in arrears within the past 12 months

If a customer's account has previously fallen into arrears within the past 12 months (and at that time the customer received the disclosure required by MCOB 13.4.1 R), the arrears have been cleared and the customer's account falls into arrears on a subsequent occasion a firm must either:

(1) issue a further disclosure in compliance with MCOB 13.4.1 R; or

(2) provide a statement, in a durable medium, of the payments due, the actual payment shortfall, any charges incurred and the total outstanding debt excluding any charges that may be added on redemption, together with information as to the consequences, including repossession, if the payment shortfall is not cleared.

13.4.5 Steps required before action for repossession

Before commencing action for repossession, a firm must:

(1) provide a written update of the information required by MCOB 13.4.1 R(2), (3), (4), (5) and (6);

(2) ensure that the customer is informed of the need to contact the local authority to establish whether the customer is eligible for local authority housing after his property is repossessed; and

(3) clearly state the action that will be taken with regard to repossession.

13.5 Dealing with a customer in arrears or with a mortgage shortfall debt

13.5.1 Statement of charges

Where an account is in arrears, and the payment shortfall or mortgage shortfall debt is attracting charges, a firm must provide the customer with a regular written statement (at least once a quarter) of the payments due, the actual payment shortfall, the charges incurred and the debt.

13.5.3 Pressure on customers

A firm must not put pressure on a customer through excessive telephone calls or correspondence, or by contact at an unreasonable hour.

13.6 Repossession

A firm must ensure that, whenever a property is repossessed (whether voluntarily or through legal action) and it administers the regulated mortgage contract in respect of that property, steps are taken to:

(1) market the property for sale as soon as possible; and

(2) obtain the best price that might reasonably be paid, taking account of factors such as market conditions as well as the continuing increase in the amount owed by the customer under the regulated mortgage contract.

13.6.3 If the proceeds of sale are less than the debt

(1) A firm must ensure that, as soon as possible after the sale of a repossessed property, if the proceeds of sale are less than the amount of the customer's debt, the customer is informed in a durable medium of:

(a) the mortgage shortfall debt; and

(b) where relevant, the fact that the mortgage shortfall debt may be pursued by another company (for example, a mortgage indemnity insurer).

(2) If the decision is made to recover the mortgage shortfall debt, the firm must ensure that the customer is notified of this intention.

The notification referred to in (1) must take place within five years of the date of the sale (if the regulated mortgage contract is subject to Scottish law) or within six years (in all other cases).

13.6.6 If the proceeds of sale are more than the debt

A firm must ensure that, on the sale of a repossessed property, if the proceeds of sale are more than the amount of the customer's debt, reasonable steps are taken, as soon as possible after the sale, to inform the customer in a durable medium of the surplus and, subject to the rights of any subsequent mortgage or charge holders, to pay it to him.

Latest Topics

Sympathy for the Devil…

Dear reader, have a look at this…unbelievable, sanctimonious and self indulgent in the extreme post recieved [Read More]

Gimme some truth part two…

The Filth Capstone Acenden have a lot to explain. They have a lot to account for. And they have so, so much more to [Read More]

OK. We’re back!

2012 has been a difficult year for all of us involved here – there’s no doubt about that. It’s been [Read More]

Gimme some truth…Part One

If you keep pressing long enough the truth will come out. And it’s important to remember that.  WHY?..Because it [Read More]

For Amany and Hector… we hope you don’t sleep too still

For Amany and Hector… we hope you don’t sleep too still

Pity Margaret ‘PwC” Cole, didn’t get a mention here. She’s now off to the ‘Dark [Read More]

Now…where were we..?

OH YES! The filthy and disgusting practices of the LIBOR fixing complicit Acenden. That’s where we were! We have [Read More]

A plea for caution, patience and restraint…

Users need to tread carefully when asking for information from other users. I am VERY disturbed by certain recent and [Read More]

Fair comment on an unfair bunch of outlaws…and still the regulator fails to regulate

I have found their site very tricky to use and poorly set up. It is badly put together for a start. The problem is an [Read More]

Unfit for Trading Purposes

If, as one of our correspondents alleges, Acenden are losing trace of payments made via their much trumpeted website [Read More]

100,000 hits

Having now gone over 55,000 hits on this incarnation of the Capstone Action Group site, 38,000 on the one they gagged [Read More]

Recent Comments

roy williams said

well i amhaving the same problem.my ex wife took a loan out on the house i got the check then sent it back to them it Read the post

paul said

just been awarded unfair charges £890 plus interest by ombudsman.in may 2011 owed eurosail £12500 to date got Read the post

BeingDUN said

Wait until you hear my story...recently woken up after 4 yrs of 10yrs 14tl discovered fraud committed by solicitors and Read the post

iain said

I have just started prcoeedings against gemoney/i group re the arrears charges they placed on me . Has anyone been Read the post

Elvis said

Howdy would you mind letting me know which web host you're utilizing? I've loaded your blog in 3 completely different Read the post

seifenblasen said

Understandably this is considered among the reasons the games remain famous. Not too bad I guess for my first year Read the post

RJL said

I am just as angry as everyone else on here and I havebeen treated just as badly but has anyone ever actually won Read the post

Data Wipe said

Excellent post. I was checking constantly this blog and I am impressed! Very helpful information specially the last Read the post

Stephen said

Hi all This is a recent announcement as regards companies like Capstone, and finally legal proceedings of the new Read the post

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A Manifesto

We aim:

1. To name and shame Capstone Mortgage Services as a disgraceful Third Party Administrator which specialises in ripping people off before dispossessing them.

2. To highlight the appalling practices of this firm which are systemic and unlawful and which cause huge consumer detriment.

3. To highlight the fact of insolvent trading by the Lehman Bros entities including SPML, SPPL, and PML; to further highlight their failure to comply with their legal responsibilities to submit accounts or appoint directors.

4. To challenge the locus standi of Capstone Mortgage Services to issue claim on behalf of the originating lender.

5. To campaign and lobby the regulators such as the Financial Services Authority to halt these abuses NOW, by applying the law and regulations as they exist.

6. To assist anyone in the process of fighting unlawful, falsely premised and vexatious repossession claims to mount a viable defence.

7. To campaign for fairer hearings before the courts in repossession claims than the anecdotal evidence suggests is currently the case.

8. To encourage in the media wider reporting of the fall-out for thousands of British families and households of the Lehman Bros bankruptcy.

9. To alert all concerned that the cynical makeover from Capstone to Acenden is nothing more than a PR rebranding exercise and has if anything resulted in more of the same from this appalling 'mortgage servicer.'

This is not just our manifesto. It is yours too. Feel free to post up suggestions and they will be considered for inclusion.

FSA Principle 6

" A firm must pay due regard to the interests of consumers and treat them fairly"

Securitisation and Fair Treatment – As stated by the FSA

In terms of the issues raised around securitisation, we expect a firm to adopt the same approach to forbearance for borrowers with mortgages that have been securitised as for borrowers whose mortgages remain on the firm’s books. Securitisation covenants should not constrict a firm’s ability to treat its customers fairly by exercising appropriate forbearance strategies.

Whither Deterrence..?

Margaret Cole, director of enforcement and financial crime at the FSA said:

"FSA rules ensure that financial services firms operate safely, protecting both their customers and the industry itself. Anyone found flouting those rules will face stiff penalties."

Really? Or did you mean THIS:

When I use a word,' said.... in rather a scornful tone, 'it means just what I choose it to mean — neither more nor less."

FOS Complaints STATS Courtesy of Dingle.

SPML 56% found in favour of complainant

1 July 2009 – 31 December 2009 – new cases

Kensington 50

1 July 2009 – 31 December 2009 – resolved cases

Kensington 50% resolved in favour of complainant
SPML 40% resolved in favour of complainant

1 January 2009 – 30 June 2009 – new cases

Kensington 70
Preferred Mortgages 31

1 January 2009 – 30 June 2009 – resolved cases

GMAC 74% resolved in favour of complainant
Kensington 37% resolved in favour of complainant
Preferred 56% resolved in favour of complainant
SPML 48% resolved in favour of complainant

SPPL’s VAT (Yeah…I’m the Taxman…)

Direct from SPPL's Tariffs and Charges 2010

"All fees and charges are inclusive of VAT where applicable."

Now, where did we put those SPPL Accounts...?

s.27 of the Land Registry Act 2002

From the many prospectuses...

"Neither the Issuer nor the Trustee currently intend to effect any registration at The Land Registry of England and Wales, the Registers of Northern Ireland or any registration or recording in the Registers of Scotland to protect the sale of the Loans"

Why not? It is a legal requirement that they do so and any failure amounts to a criminal offence.


January 2011
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