Maltesers and Madmen

The Maltese physician, inventor, author of Six Thinking Hats and the man who coined the term “lateral thinking”, Edward de Bono, once said, “Unhappiness is best defined as the difference between our talents and our expectations” and this has certainly proved the case for me in my fruitless attempts to get the Bank of Scotland to write off a mortgage shortfall their irresponsible lending culture, their gross incompetence and their rapacious greed created.

Throughout the past six unhappy years I have spent countless hours explaining;

•  Neither my husband or I have anything more than a subsistence income with which to support our three children.
• Neither my husband or I have any capital with which to repay an alleged mortgage shortfall of £217,00,

And, as a result of my recent findings, further explained,

• Like me, HBOS has been a victim of broker mortgage fraud and, as a result of the falsifications which were submitted by the broker in an online application, their mortgage contract with my husband and I is not only void but cannot be enforced.

However, rather than respond to my repeated requests for documentary evidence to help support my case against the broker with the Cornish police, I have just returned from my much needed two week holiday with family to eight letters from the Bank of Scotland and their solicitors not only asking for payment in full but telling me;

•       “We understand that this account is not in dispute”
•    “There is no valid reason for it to remain unpaid”

And,

•        "We do not wish our request for payment “to have a detrimental impact on your personal finances”

Edward de Bono also said, “Most of the mistakes in thinking are inadequacies of perception rather than mistakes of logic” but after six years of flogging the HBOS dead horse I can only wonder...

WHAT ARE THESE PEOPLE ON?

Truth and Truman

Christof, the fictional allegory of the omnipotent programme maker in TheTruman  Show once said, “If his was more than just a vague ambition, if [Truman] was absolutely determined to discover the truth, there’s no way we could prevent him” and as I enter my sixth year of battling  with HBOS over my miss sold mortgage and its resulting £217,000 shortfall, I can not help but wonder  if  I too have unwittingly secured a  leading role in my own real life reality show. If only a little more effort and absolute determination was all it would take to unearth the truth and nothing but the whole truth about the underwriting of my HBOS mortgage.

To date, despite my best efforts, I am still without copies of  the mandatory compliance documents which should have accompanied the sale of my HBOS mortgage and all I have to show for my endeavours is yet another notch on my FOS complaints file as a result of the second complaint I have lodged, and won, against yet another biased and incompetent Financial Ombudsman adjudicator.  However, I am delighted to report that my absolute determination to confront and overturn the FOS’s unfair ruling has rewarded me with the following:

·         An investigation into the actions of the adjudicator who made the ruling in favour of HBOS without allowing me to submit further evidence

·         An apology from the FOS adjudicator for repeatedly ignoring my emails over a period of three months

·         A  retraction of the unfair FOS ruling of  November 2013

·         An extension until  31 January 2014  to allow me time to submit my additional evidence

With a traumatic year and an unwelcome house move firmly behind me it appears absolute determination in 2014 has afforded  me some more very welcome news. I am now in receipt of a very apologetic letter from HBOS stating a copy of my mortgage conveyance file  is finally on its way as well as notification from the Information Commissioner's Office advising me HBOS is to be investigated for failing to supply me with the compliance documentation  I requested under my DSAR a year ago.

Christof also said,  “I am The Creator - of a television show that gives hope and joy and inspiration to millions” and while I can hardly describe my blog posts or my life as providing hope, joy or inspiration to millions, I, like the viewers of The Truman Show can’t help but be continually wondering, “How [and when] is it going to end?”

Here’s hoping 2014 turns out to be a happy and peaceful one for us all.

Adverse Effects

Former US Ambassador to Spain and nineteenth century author Washington Irving once said, “There is, in every true woman’s heart, a spark of heavenly fire which lies dormant in the broad daylight of prosperity but which kindles up and beams and blazes in the dark hour of adversity” and in the face of further obstacles of my own, kindling up and blazing with heavenly fire seems the only way forward.

During the past month I have been advised by our land lord,

• He wishes to carry out building works on a neighbouring property which will necessitate the decimation of our back garden throughout July and August.
• He is switching our central heating system to that of sustainable fuel in two months during which time he expects us to use up all the LPG and oil we have already purchased for next winter
• Our residential tenancy is in jeopardy because, not only have we enjoyed a very low rent for the past four years but, despite having been given permission to have lodgers at outset, we are technically in breach of our lease.

During the past fortnight I have been advised by the HBOS data subject access team,

• Their mortgage department is not responding to their requests for the information missing from my mortgage file
• Their in house solicitors are proving impossible to contact
• Their in house surveyors have ignored all their requests to communicate

And,

During the past week I have repeatedly advised my twelve year old dyslexic son,

• Being repeatedly punched, scratched and sworn at by two of his classmates while on their five day French trip is a serious offence.
• The cuts and bruises he has suffered will soon heal and neither show or hurt
• Reporting bullies is always the right thing to do despite the discomfort from the fallout.

Ancient Greek philosopher and teacher Epicurus once said, “You don’t develop courage by being happy in your relationships every day. You develop it by surviving difficult and challenging adversity” and it is at times like these I can only hope he is right!

Blame and Circumstance

Jean Paul Getty once said, “If you owe the bank one hundred dollars that’s your problem, if you owe them a hundred million dollars then that is their problem” and while a global economic recession gives rise to worldwide fretting over trillions, democracy remains the process by which the "powers that be" choose to allocate the blame.

For  Antonio Horta Osario, chief executive officer of  41% tax payer owned banking giant Lloyds, it is over enthusiastic claims management companies swamping his administrators for PPI compensation who are getting his goat. Lloyds are expected to pay out an estimated five hundred million pounds to clients to whom they have miss-sold PPI. Mr Horta Osario says one in four claims submitted by these companies are for individuals who are not eligible for compensation nor have they been customers of the bank and says this blanket approach to the claims process is not only slowing it down but costing Lloyds money. His has publically stated “ it is fraud and it must stop”. However he has not felt the need to make such strong statements about Lloyds Banking Group’s own HBOS executives, despite the knowledge several are now facing criminal charges for alleged financial crimes which have cost the indivual and the economy billions.

Defence secretary, Philip Hammond, has also chosen to point his accusing finger this week declaring he is of the opinion it is the individual who “over borrowed in the economic boom who must now admit to their part in the financial crisis”. He says the banks had to lend to someone and these people should “accept responsibility for the consequences of their own choices” rather than conveniently cast the blame on the banks.  However, when speaking of the period in which he helped formulate David Cameron’s economic strategy in opposition he says, “We started living a lifestyle both in private consumption and in public consumption which could we not afford [and it] ran away with us” so unsurprisingly it appears the governments take on the financial is what is sauce for the goose is not necessarily sauce for the gander.

In contrast, Mervyn King, Governor of the Bank of England, previously reluctant to lay the blame at anyone’s door, now tells us it is “the failure of a system” that is at fault and not the individual. Speaking of “a slow and steady recovery coming during the course of 2012” he admits the Bank of England must take a “share of the responsibility” for the financial crisis and “with benefit of hind sight should have shouted from the rooftops that a financial system had been built in which banks were too important to fail, that banks had grown too quickly and borrowed too much, and that so-called “ light-touch regulation hadn’t prevented any of this”.

It also seems HBOS auditors KPMG may well be shouldering some blame this week following reports an official investigation by the Financial Reporting Committee to investigate their conduct following HBOS whistle blower Paul Moore’s letter to the Treasury Select Committee sighting an inaccuracy in their forensic audit regarding his dismissal as global head of regulatory risk in 2005. Mr Moore was “let go” because he disagreed with the board’s attitude to risk and warned that HBOS’s lending strategy had become dangerously over heated. He believes KPMG’s decision to record this event as “a clash of personalities” was wholly misleading to the Lloyds takeover of 2008 and eventually cost the tax payer a further millions in government bailout support . Mr Moore blames the fact that, “money seems to be more important to KMPG’s strategy than integrity and professionalism”.

And

Stephen Hester, chief executive officer of 84% taxpayer own Royal Bank of Scotland is also casting the blame this week and its not, as one might expect on his predecessor Fred Goodwin who has already been stripped of his knighthood, is facing criminal charges for fraud and may well have past bonuses recalled to help fund PPI compensation. Instead Mr Hester’s eight gardeners on his 7 million pound, 350 acre Oxfordshire estate tell us rain has blighted attendance of the annual charitable opening of his twenty five acre gardens. It may not have crossed Mr Hester’s mind his infamous fight to keep his £963,000 bonus earlier this year despite a dip of 36% on its share price, a first quarter loss of 1.4 billion and further RBS job losses ,bringing the total to almost 50% of its pre- crisis work force, might well have had something to do with the public's disinterest in his garden.

Founder of the Firestone Tyre and Rubber Company, Harvey S Firestone once said, “A man with a surplus can control circumstance, but a man without a surplus is controlled by circumstance and often has no opportunity to exercise judgement”. However if this week is anything to go by, this rule seems seldom to apply and it is for this reason I live in hope that, despite a life now lived without surplus, I will have the opportunity to exercise my own judgement in my ongoing personal battle with HBOS and will, one day, enjoy a result as a consequence of public opinion insisting the banks ultimately accept the blame.

Unequal Shares

Thomas Jefferson, third president of the US, once said, “I believe that banking institutions are more dangerous to our liberties than standing armies. If [we] ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and the corporations that grow up around [the banks] will deprive the people of all property until their children wake up homeless.... The issuing power should be taken from the banks and restored to the people, to whom it properly belongs,”  and if the 8,500 mortgage litigation cases against them are anything to go by, HBOS and Barclays are about to prove Jefferson’s words of warning  are correct.

A recent report warns banking giants Barclays and HBOS may well have to reimburse their customers for charges amounting to hundreds of millions. This is because HBOS’s and Barclays' shared appreciation mortgages, which offer an interest free capital sum in exchange for seventy-five percentage of the borrower’s equity, have harvested vast rewards for the bank at wholly excessive expense to the mortgagees. Some homes have appreciated by £300,000 in the 10 years since the loans were made meaning homeowners have had to pay more than £200,000 on loans as little as £25,000. These products were designed and targeted at low income customers who were quite often elderly and have proved doubly lucrative for the lenders because properties values were in the doldrums when many of these products were sold. This gave the banks the perfect window of opportunity to acquire a  substantial slice of an often vulnerable individual’s future equity for a minimal outlay throughout the depressed years of property growth during the 1990’s.

Hilary Messer of RWP solicitors is waiting for more people to come forward before she brings this proposed class action formally to the attention of HBOS, Barclays and the courts but it cannot have made it any easier for those Barclays shareholders aware of this pending lawsuit to know there could be a demand for a further 850 million pounds on top of the ongoing costs of the PPI claims and the impact of the government bailouts. Neither can it help to be made aware that less than half of Barclay’s chief executive Bob Diamond’s pay packet is to be growth related. Little wonder so many shareholders were vocal in their discontent to discover Bob Diamond is to enjoy a 2.7 million bonus on top of his 1.35 million salary in addition to the 5.7 million he has already received to cover his tax bill. However, it must have been nothing short of incendiary to find Barclays staff bonuses of 2.25 billion pounds in 2011 were triple the 730 million pounds paid out in dividends to share holders.

While David Cameron says the lack of economic recovery is, “very, very, disappointing” and Ed Milliband blames the present governments “catastrophic”  polices and lack of meaningful banking reform, it is clear from the actions of Barclays and HBOS they remain blissfully detached from the effect the first double dip recession we’ve had since the 1970’s and the impact it is having on the rest of us. Instead their executives continue to feather their own nests and, in the case of the Bank of Scotland, attempt to paper over the cracks with an advert created  by London-based advertising agency RKCR/Y&R and developed “to reassert traditional values”. It tells us, “You never know what is going to be round the corner, or what twists and turns life is going to take.” I beg to differ. I have always found past performance to be a reasonable indicator of what’s on the cards for the future and in the case of HBOS and Barclays it is clearly going to be more of the same. It is because of this my personal battle with LLoyds and HBOS is destined to be a long one as is, I suspect, any hope of economic recovery.

Thomas Jefferson also said, “It is error alone which needs the support of the government while truth can stand by itself” and sadly for us, it seems he’s right again.

More reasons to be cheerful

Margaret Thatcher once said, “I always cheer up immensely if an attack is particularly wounding because I think, well, if they attack one personally, it means they have not a single political argument left.”  Hoping there is rationale to this argument, I put aside the financial ombudsman’s adjudicator’s judgemental and derogatory comments in an effort to relax with my children over half term. Distancing myself from the onslaught in this way has enabled me to reflect on my campaign to rebuild my family’s life and there is a lot for which I am most grateful.

In October 2008 my world fell apart when I discovered my husband had borrowed well beyond our means in a desperate bid to complete a building project before the property market went into recession. Our troubles were compounded by the news our business bank, Heritable, was in administration leaving us in an untenable position on every front.

However,

In December 2011 Heritable Bank formally released my husband and I from a shortfall obligation of £210,000 and in so doing presented me with a beautifully packaged Christmas gift of unbridled relief. I remain eternally grateful to those within Heritable Bank who chose to use empathy and compassion when considering the solution to our predicament.

In October 2008 when I realised there was also £446,000 of credit card debt and no means with which to repay it, I was distraught to be party to this insurmountable sum and imagined it would be with us forever.

However,

Today, £40,000 is all that remains as the balance has either been written off or deemed not persuable by our creditors. Those who elected debt forgiveness as a way forward for us offered it with words of good will for both our family and our future. I remain truly grateful for their pragmatic approach to our financial problems.

In October 2008 I was horrified to find our family home was the subject of a possession order and further panicked to discover without financial references it was impossible to secure a tenancy on a rented house through the normal channels. Fearing for my children’s future and desperate to remain in a familiar location amongst friends and family I tried everything I could think of but without success.

However,

In December 2008, I received a phone call from a gentleman who, having originally declined my request for accommodation, wished to reconsider our application on the basis of a character reference instead of a financial one. In January 2009 we moved into a homely farmhouse where we have remained ever since.  By finding an innovative solution to our housing needs our landlords provided us with sanctuary when others wouldn’t. For this ongoing act of kindness I am truly appreciative.

In October 2008, finding ourselves bereft of both income and assets we were not only unable to pay the school fees but were already a term behind. Believing my children would never again enjoy a private education I contacted the school to advise them of our position with the heaviest of hearts.

However,

Instead of being shown the door, not only was my eldest son awarded a full bursary but I was also given advice on how to secure two further awards for my younger children. In Feb 2012 thanks to the guidance of the Headmaster’s and their respective bursars I am proud to say my daughter has now received an academic award for an independent secondary school and my youngest son has been earmarked for a sports scholarship. I am indebted to the people who guided me through this emotive process with my children’s best interests in their hearts and a genuine understanding for our difficulties.

And,

On lodging my HBOS complaint with the Financial Ombudsman’s Services in April 2010 I mistakenly believed help would be on hand to communicate effectively with my persecutors and sheild me from further episodes of personal attack. Although FOS intervention quickly resulted in the removal of HBOS’s Merrils Ede henchmen from my case, more recent letters from my adjudicator have revealed an impatient disinterest combined with a sizeable ration of personal distaste. Attitude of this nature, from a financial regulator appointed to my case, left me feeling both despondent and completely disarmed.

However,

Following my complaint to the FOS’s Chief Executive, I was contacted by their complaints department who not only expressed remorse at the way in which I had been dealt with by their adjudicator but also revealed HBOS had been unresponsive to the FOS’s requests concerning my case and in so doing may well forgoe the opportunity to have their say. Futhermore my complaint is to be fast-tracked to avoid current case lead times of fourteen months and in addition I am also permitted to include my recent findings on the subject of HBOS’s over-valuation of my home. Being treated with respect and understanding over the pain-staking and painful process of bringing HBOS to account has not only lifted my spirits but given me the invaluable gift of a hope and for this I am immeasurably grateful.

William Arthur Ward, author, pastor and teacher believed we should all, “do more than belong, participate; do more than care, help; do more than believe, practice; do more than forgive, forget; do more than dream, work” and it is clear, from my half term reflections, with the exception of HBOS and my ombudsman's ajudicator, most people who have touched my life during these difficult years have chosen to live and work by a similar code to that endorsed by William Ward. It is to these  people I wish to extend my whole hearted thanks.

Dark Knights and Hoods

Evangelist Billy Graham said, “There is nothing wrong with men possessing riches. The wrong comes when riches possess men” and hearing that former HBOS executive Peter Cumming’s corporate lending portfolio was something of an Aladdin’s cave, I can see how tantalising the promise of such riches must have been; especially to those who were ignorant of the fraudulent methods employed to achieve them. For those who agreed to practise the dark art of perpetuating “the get rich quick” myth on the balance sheets, I have no doubt the power that accompanied such lucrative returns was both all consuming and intoxicating.

Still victimised by the consequences of the ongoing banking gluttony, I often speculate as to how HBOS originally portrayed my own residential mortgage in April 2006 when an £790,000 advance was secured against my home based on what I now believe was a grossly inflated valuation of £925,000. It  has been no surprise to find HBOS' continued nonchalant attitude has persisted and precluded me from all discussions regarding this mortgage from the outset until the moment I contacted them about our financial circumstances in October 2008. Now I am even more curious to know how my unrecoverable £217,000 shortfall is being recorded in their loan book and explained considering it represents a nose dive of approximately 30% against their in house valuation only three years earlier and remains completely unrecoverable.

However, with all eyes currently on who will or won’t take a slice of the millions set aside for bankers bonuses this year and increasing public interest in who should be next to follow Fred Goodwin into his Knighthood free status, I cannot imagine anyone within HBOS or the FOS are wondering if the vast amount of HBOS debt that continues to be written off every day by Lloyds TSB might ever include a residential shortfall which has left me standing on a financial precipice for years. Nor do I delude myself any consideration by the FSA has been given as to whether or not my unrecoverable loan is still propping up HBOS balance sheets as a fictitious asset on which to pay executive bonuses or instead it is being used to perpetuate another boardroom driven myth that lurks in shady recesses supported by negative accountability for financial crimes against everyone but the HBOS executives themselves.

Forever presented with antidotes to our economic health which continue to favour the corporate along with solutions limited to toothless acts of regulation designed to placate rather than resolve, I cannot comprehend why, to date, no government initiative or banking reform has focused on a reprieve for the individual victims who, like me, remain in purgatory as a direct result of the well documented fraudulence, unadulterated greed and widespread corporate dishonesty of sociopathic CEOs, Banksters and their Hoods.

In the words of Abraham Lincoln, “We the people are the rightful masters of both Congress and the courts, not to overthrow the Constitution but to overthrow the men who pervert the Constitution” however, despite an economic crisis of global proportions, those who cruelly perverted the course of both my financial and family life, along with the lives of thousands of others like me, are not only at liberty to bully and persecute their victims without restraint but, thanks to David Cameron’s Christian principals of forgiveness and the captured policies of his regulators, they remain free to pervert any chance of a morally sound outcome for the individual.