HBOS Mortgage fraud ?

[unclebulgaria67]

Just on the news, Paul Lewis from BBC Moneybox says that HBOS have been referred by the Northern Ireland Attorney General to the Police, for possible fraud. This relates to double accounting on mortgage arrears, which the Attorney General believes it is possible that a fraudulent act has taken place.

 

Because this relates to an ongoing Police enquiry, people should be careful what they say when replying to this thread. We would not wish to prejudice any potential prosecution.

 

But it is interesting, because if HBOS are proved to have mortgage accounting processess which are not legal, then relevant people at HBOS could be prosecuted. Also it will open up the floodgates for people affected to makes claims against HBOS for any losses they have suffered.

[BankFodder]

Northern Ireland's Attorney General has accused Bank of Scotland of "criminal fraud".

John Larkin QC made the comments in relation to the bank's treatment of some customers who fell behind on their mortgages.

An earlier court hearing ruled the bank unfairly double-billed some customers whose mortgages were in arrears.

Bank of Scotland rejected Mr Larkin's claims, saying it strongly takes issue with the allegations.

The bank had appealed the verdict of the earlier court hearing but dropped that appeal on Monday morning.

'Extraordinary' Mr Larkin was in court for the hearing and said the original, scathing judgement was "unduly tender" on the bank.

 

http://www.bbc.com/news/uk-northern-ireland-30378239

[BankFodder]

 

Bank of Scotland may have committed criminal fraud in how it dealt with some customers who fell into mortgage arrears, Northern Ireland’s Attorney General claimed today.

John Larkin told the High Court in Belfast that the issue has been brought to the attention of the police.

His assessment came as lawyers for the bank announced they were dropping their appeal against a ruling that it had “unconscionably” double-billed some customers.

Earlier this year a judge held that its practice of restructuring and increasing monthly instalments plunged borrowers into depression.

His verdict came in three cases brought by the bank involving claims for house repossessions.

At the time High Court judge Master Ellison accused the bank of “having its cake and eating it”.

 

http://www.irishtimes.com/business/financial-services/bank-of-scotland-accused-of-fraud-over-mortgage-arrears-1.2030019

[unclebulgaria67]

It is interesting, that HBOS will consolidate the arrears into a revised mortgage repayment arrangement, but still consider the account to be in arrears, until the original arrears have been cleared. I suppose it depends on what paperwork was issued by HBOS and whether this was compliant with all relevant regulation and law.

 

The Police would have to presumably get expert accountants to investigate a number of cases, to see whether HBOS have made a financial gain beyond the revised mortgage contract arrangement.