Just when we thought that Nykredit in Marbella, along with its mammoth parent Danish company (Nykredit Realkredit A/S), could not stoop any lower on how abhorrently they deal with customers, new events have proved us wrong.
This is the story: 3 families who are having their properties foreclosed on by Nykredit and are about to lose their homes ‚Äďas a result of being sold an illegal `Spanish Equity Release Package` offered in conjunction with unregulated Sydbank- have just recently received letters from the main Denmark office urging them to make instalment payments to become ‚Äúcore customers‚ÄĚ again and have their mortgages reinstated.
Placing due reliance on the representations made on the letters, customers have gone along and paid the sums requested on the letters.
The letters are true and real but have a catch: Nykredit says that they were sent by error¬†and that they are not valid. Still, Nykredit keeps the money and continues with the forced sale.
In this case, foreclosure proceedings commenced back in May 2014 and the letters have been received end of 2016 and beginning of 2017. Incredibly, Nykredit stands by their comments and says it is¬†a computer generated error which means the letters are not valid in law.
If we were to draw a parallel, Spanish banks have not even come close to this level of deceit. It is now time for the authorities to seriously contemplate revoking Nykredit‚Äôs authorization to operate in Spain.
Letters will be posted here shortly.
ERVA can announce that the claim against SL MORTGAGE FUNDING N 1 LIMITED and THE PREMIER GROUP (ISLE OF MAN) LIMITED -on behalf of 14 claimants- will be filed on Friday 4th of April 2014.
The claim is based on the following grounds:
- Neither company were regulated to operate in Spain. The company SL MORTGAGE FUNDING N 1 LIMITED actually admitted this was the case as if to avoid the application of Spanish mandatory provisions by attempting, in the opinion of the acting lawyers, to equate the validity of this undertaking to a type of “limitation of liability clause”.
- Both companies openly admitted that the main purpose of the product, sold with the name “SITIRS” (Spanish Inheritance Tax and Income Release Scheme or Spanish Investment Transfer and Income Release Scheme), was to reduce or mitigate Spanish Inheritance Taxes.
- Both companies confirmed that they had received the ‘blessing’ of top law firms, ERNST & YOUNG and URIA & MENENDEZ, none of which will admit to this.
- Both companies concocted a plan to have the products signed in Bilbao through local ‘friendly’ lawyers, Rocco Caira and Javier Bicarregui, both paid generously to sanction a bogus transaction made possible by the teaming up of a group of unscrupulous financial operators.
- Neither company allowed customers the slightest bit of information that explained the real predatory nature of the investments where the mortgage loans were invested. This was a natural consequence of not having offered the obligatory prospectus, under Spanish laws.
- Both companies shared directors, a clear indication of their togertheness in the devising of this illegal scheme.
It is still undecided whether the claim will be filed against BNP Paribas Trust Company (IOM) LIMITED and Royal Bank of Scotland (IOM) LIMITED, Custodians of the invested moneys in different times, unregulated in Spain to provide such service pursuant to the Collective Investment Scheme Act and equally responsible of permitting the engineering of a fraudulent illicit financial product for Spain, the SITIRS.
Nykredit’s lawyers maintain that, in respect of the Spanish Equity Release Product offered by their Marbella office in conjunction with Sydbank, the biggest offending bank ever to come to Spain (opened an office yet had not informed the Bank of Spain, or the Central Bank of Denmark, for that matter), both banks offered two separate services. We disagree with the first statement, for obvious reasons, but coincide in that they were 2 services: one consisted on predatory lending and the second, on mis-investing hundreds of thousand of Euros (or stealing them as nobody knows where the money went).
According to them, it was David Driver who duly put them in touch and ever since, they got on famously.
Well, it now appears that Karen Frosig, CEO for Sydbank, is also on the board of directors of Nykredit.