Slog ‘systemic’ scam allegation confirmed by RBS customers, NatWest smoke & mirrors fuel fears of impending doom.
Hester….always a warm welcome at the Treasury
Following yesterday’s piece about RBS (a) dumping the loan risk somewhere it can become an asset and then (b) scamming the customers involved for good measure, Sloggers wrote to me in droves about (c) RBS making sure the taxpayer gets lumbered with anything risky – aka, every mortgage everywhere once interest rates start to climb.
Quite a few ‘customers’ of RBS subsidiary NatWest have been receiving the letter below of late. I have the original to view, by the way, should anyone require reassurance as the the provenance here….
‘September 2012
Dear Mr & Mrs __
Changes to the legal ownership of your NatWest Mortgage
As part of our ongoing strategy to simplify our business, I am writing to inform you that we are changing the legal
ownership of your NatWest mortgage from National Westminster Home Loans Ltd to National Westminster Bank Plc by the end of December this year.
Please be assured you do not need to do anything, this letter is just to inform you of the legal ownership change.
The change will have no impact on your current mortgage terms and conditions, which wai (sic) continue to apply, and there is no action for you to take.
While the change is taking place, if you apply for a further advonce (sic) or any other change to your mortgage during this period, you may find that the name of the lender changes on the agreement you receive during the processing of your application, but again you do not need to take any action.
If your account is currently in arrears, the change will not affect any arrangement we may have agreed with you. So please continue to contact us using the same telephone number and address as at present.’
There is nothing to worry about. Do not do anything. We are in control. Soon there will be another glitch, then all will be well.
Unless you’re a relatively normal taxpayer of course, in which case you should be very worried indeed. Because something called ‘Bank’ will be in line for immediate bailout – whereas something called Home Loans might not.
It’s a man’s life in banking, eh? Shift all the assets into the good bit, shift all the toxicity into the taxpayers’ retail bank bit. Then sweat the assets by defrauding the customers. And then – we call this ‘hedging’ in the bankster profession – we swap the shifted assets for cash at the bank, thus showing a healthy cash-flow to evoke widespread confidence.
Talking of fraud, other comment threads and mail confirmed the systemic nature of RBS’s ‘business model’. Examples included:
“I know of, and have spoken to, at least 35 business people, including property developers and SME owners, across the UK whose businesses have been treated in similar ways by RBS, NatWest and RBS Group’s GRG. The pattern would appear to confirm systemic abuse.”
The Times ran a piece on the case yesterday – on page ten, presumably so Boris wouldn’t be upset by it – and on the website, so nobody would see it. As ever with Newscorp, they got a few things wrong: ‘The article mentions that the developers have had one of their claims struck out by the High Court. This is incorrect’ writes my original source, adding ‘the developers have RBS internal documentary proof that the project was in fact solvent. Responding to this, RBS are claiming that it was purely a mistake. In what is a set of complex legal procedures, the developers have had their claims accepted by a judge on no fewer than six occasions.’
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Surely this is a change of the Contract between the Bank and the Borrower and, therefore, not legal unless it is agreed to by both parties. I assume that if those persons who received the letter signaled dissagreement, then the new contract could not hold.
@JdM: No. If you read the T&C’s you will note that they can change what they like and if you don’t like it then you must redeem your mortgage and go elsewhere. It’s always in their favour, people just don’t read the contracts properly. My wife reads and writes contracts for a living, you would be amazed at some of the stuff people try to get others to agree too.
Not sure if it is an Assignment or a Novation.
Novation does require consent of all parties, Assignment doesn’t
Guessing assignment, so the interest repayments go to NatWest Bank, the risk stays with NatWest Home Loans Ltd.
The trick here seems to be NatWest Bank gets the benefit of the revenue stream from the mortgages repayments, whilst NatWest Home Loans has the obligations of the underwater “assets”.
http://en.wikipedia.org/wiki/Assignment_(law)
I would imagine what is coming out now is just the tip of the iceberg, don’t suppose for one minute we will get the truth, unfortunately, all we will get is the bill for it all. But, none of the thieving scumbags who are the perpetrators will get so much as a broken fingernail over the slimy affair. Still, if we were banksters would we have it any other way? No.
All we are really witnessing here and elsewhere, Greece et al is human nature, the internet has exposed the raw and ugly truth of the way man treats his fellow man, that’s all. Twas ever thus and always will be.
Too true KFC; the apparent building of the F1 race track in Greece says it all about man and compassion/integrity. sigh
http://www.zerohedge.com/news/2012-10-01/legendary-nurburgring-files-bankruptcy-broke-greece-launches-its-own-formula-1-race-
Seems like “someone” will get Germany’s race track for Penney’s on the pound and Grease gets some money to see them past the USA elections.
Whoops; Greece
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Out of interest:
http://www.worksmart.org.uk/company/company.php?id=00929027
Directors remuneration has gone up 16991.1% since 2005!!!
Presumably Hester visits the Bank regularly to discuss progress on these schemes face to face and lightly minuted so as to avoid creating an accurate paper-trail or any voice record from phone calls?
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