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

Marble Arch Resident3



RE: Marble Arch Res No.3

NOTICE TO NOTEHOLDERS

THIS NOTICE IS IMPORTANT AND REQUIRES THE IMMEDIATE ATTENTION OF NOTEHOLDERS. IF NOTEHOLDERS ARE IN ANY DOUBT AS TO THE ACTION THEY SHOULD TAKE, THEY SHOULD SEEK THEIR OWN FINANCIAL AND LEGAL ADVICE, INCLUDING AS TO ANY TAX CONSEQUENCES, IMMEDIATELY FROM THEIR STOCKBROKER, SOLICITOR, ACCOUNTANT OR OTHER INDEPENDENT FINANCIAL OR LEGAL ADVISER.

RE:  Southern Pacific  Personal Loans (SPPL),

Southern Pacific Mortgage Ltd( SPML),

Preferred Mortgages Ltd (PML)

Capstone Mortgage Services Ltd/ Acenden Mortgage Services Ltd

RE: Marble Arch Res No.3

IMPORTANT NOTICE TO ALL HOLDERS OF THE FLOATING RATE NOTES

Issued by THE BORROWERS  whose loans have been securitised through Marble Arch Res No.4  (the “Issuer”)

The Borrowers wish to inform all Noteholders that the Mortgage and Cash/Bond Administrator Capstone Mortgage Services Limited has been involved in the following activities which have substantially  and adversely affected the Issuer’s ability to pay in full interest due on the Notes, as and when interest and payments become due.

Capstone Mortgage Services have been and are currently deliberately engineering their own substantial profit stream from many of the 80000 accounts it administers at a loss of revenue to the Issuer and consequently to the Noteholders.

This is and has been achieved by the willful mistreatment of  borrowers who signed up to Southern Pacific Mortgage Loans Southern Pacific Personal Loans & Preferred Mortgages  Limited.

Such mistreatment takes many forms (detailed below) but essentially acts as a considerable source of revenue for Capstone Mortgage Services.

The practices of Capstone Mortgage Services are purposefully designed to ensure that borrower’s accounts (as quickly as possible) are placed into arrears whereupon they can inflict their charging regimes and commence their revenue stream at great cost to both the borrowers and consequently causing cumulative and catastrophic shortfalls in the ability of the Issuers to pay the Noteholders their due amounts on the due dates.

These practices are as follows:

(a) alleged none payment where payment has been tendered;

(b) alleged late payment where payment has been tendered upon date due;

(c) falsely alleged shortfalls in payments;

(d) failure to change payment due date to reflect that not all consumers are paid on regular dates or even the same date as collection is deemed due;

(e) false entries onto consumer accounts regarding alleged failed payments;

(f) failure to correct such entries after complaint and charge compound interest thereupon;

(g) failure to amortize the debt with payments made over and above the interest due, thus creating a higher level of compound interest over the term of the mortgage and increasing over time the likelihood of default;

(h) routine monthly access to and entry upon consumers credit reference files, thus making it more difficult for consumers to switch product and thereby clear their liability

(i) Unlawful and punitively raised charges with no prior notification of their application; compound interest applied thereon;

(j) In litigation, failure to seek possession only as a last resort; failure to serve documents upon the defendant; failure to offer to capitalize genuinely constituted arrears; failure to accept temporarily reduced payments without inferring delinquency; failure to accept payments from customers in arrears where the full alleged arrears is not tendered, failure to refund unlawfully applied charges and compound interest applied; failure to waive charges where a performing arrangement for arrears clearance is in place;

(k) In suspended cases, the application of charges without notice in excess of the overage paid by consumers to clear their arrears; misrepresentation to the courts that such arrangements will clear the arrears when typically they will not, as a consequence of yet further charges disguised with various nomenclature as arrears management fee, litigation fee, arrears interest, interest charged and so on;

(l) Willful exaggeration of the consumer’s genuine level of arrears, which may be typically half of the overall total claimed.

(m) Falsely adding block building insurance to your mortgage account when in receipt of mortgagor’s own building insurance. Then instead of refunding the payments – the monies are used to reduce manufactured arrears on the account.

Once the goal of forcing an account into arrears is achieved or the borrower has encountered genuine difficulties due to sickness or changes in employment status (e.g. full time to part time) the following charges, by far the highest in the whole Industry, are applied.

Monthly Collection / Arrears Management Fees

Late Payment Management Fee:                         £25.00 (per occurrence)

Arrears Management Fee                                    £85.00 (per month)

Litigation Management Fee:                                £115.00 (per month)

Repossession Management Fee:                        £115.00 (per month)

Capitalisation of Arrears Fee                                £65.00 (per occurrence)

Failed Payment Fee                                             £9.00 (per occurrence)

Referral to Solicitors Fee                                      £50.00 (per occurrence)

Property Pre-market Fee                                      £250.00 (per occurrence)

These charges which Capstone’s own regulators the F.S.A. have stated should only cover the real costs of administration fees and not be used as a profit stream are taken directly from the borrowers’ repayments before the repayments are transferred to the Issuer, substantially and adversely affecting each of the the Issuers ability to pay in full interest due on the Notes.

Extract from the Regulatory Framework

Mortgage Conduct of Business rules (MCOB)

MCOB 12.4.1

(1) A firm must ensure that any regulated mortgage contract that it enters into does not impose, and cannot be used to impose, a charge for arrears on a customer except where that charge is a reasonable estimate of the cost of the additional administration required as a result of the customer being in arrears.

(2) Paragraph (1) does not prevent a firm from entering into a regulated mortgage contract with a customer under which the firm may change the rate of interest charged to the customer from a fixed or discounted rate of interest to the firm’s standard variable rate if the customer goes into arrears, providing that this standard variable rate is not a rate created especially for customers in arrears.

MCOB 12.4.1A

The imposition of a charge for arrears on a customer who is adhering to an arrangement under which the customer and the firm agree that the customer will make payments of a set amount per month (or other agreed period) on agreed dates may be relied upon as tending to show contravention of MCOB 12.4.1R (1)3

MCOB 12.4.1B

When a customer has a payment shortfall in respect of a regulated mortgage contract, a firm must ensure that any payments received from the customer are allocated first towards paying off the balance of the shortfall (excluding any interest or charges on that balance,)

MCOB 12.4.2

A firm may calculate the same level of arrears charges for all regulated mortgage contracts where the customer is in arrears, rather than on the basis of the individual regulated mortgage contract with the particular customer.

MCOB 12.4.3

Firms are also subject to requirements on information provision and standards relating to arrears and repossessions (see MCOB 13 (Arrears and repossessions)).

MCOB 13.3.1 Rule25/06/2010

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

(a) is in arrears on a regulated mortgage contract1 or home purchase plan;

(b) has a  sale shortfall; or

(c) is otherwise in breach of a home purchase plan.

(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). Such policy and procedures must reflect the requirements of MCOB 13.3.2A R and

MCOB 13.3.2A

2 A firm must, when dealing with any customer in payment difficulties:

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

(2)  liaise, if the customer makes arrangements for this, with a third party source of advice regarding the payment shortfall or sale shortfall;

(3)  allow a reasonable time over which the payment shortfall or sale shortfall 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;

(4)  grant, unless it has good reason not to do so, a customer’s request for a change to:

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

(b)  the method by which payment is made; and give the customer a written explanation of its reasons if it refuses the request;

(5)  where no reasonable payment arrangement can be made, allow the customer to remain in possession for a reasonable period to effect a sale; and

(6)  not repossess the property unless all other reasonable attempts to resolve the position have failed.

MCOB 13.3.3

The requirement in MCOB 13.3.1 R(2) for a written policy and procedures is intended to ensure that a firm has addressed the need for internal systems to deal fairly with any customer in financial difficulties. MCOB 13.3.1 R(2) does not oblige a firm to provide customers with a copy of the written policy and procedures. Nor, however, does it prevent a firm from providing customers with either these documents or a more customer-orientated version.

MCOB 13.3.3A

In complying with MCOB 13.3.2A R, a firm must give a customer a reasonable period of time to consider any proposals for dealing with the payment difficulties.

There is documentary evidence available that Originator/Lenders have deliberately ignored their own stated lending  criteria and M.C.O.B. Rules concerning affordability  in order to provide loans for the mortgage pools for which they have been paid by the Issuer and which have then failed.

Payments have been apparently made on a large scale of the relevant Bbrrowers repayments into the incorrect Issuers accounts with potential serious tax and accountancy problems and consequent losses to the rightful noteholders

Queries may be addressed to the BORROWERS as follows:

e-mail: borrowerstrust@gmail.com

This Notice is given by the Borrowers 26th August 2010 at 16:00 BST.

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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.

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Recent Comments

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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
SPML 56

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

GMAC 54
Kensington 70
Preferred Mortgages 31
SPML 92

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.

 

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