The first 2 reports drawn up by the compay Muntaudit (http://muntaudit.es/) have now been received.
One refers to Nykredit/Sydbank and the second one to Finansbanken/Sparekassen Lolland Equity Release products.
The first point that the independent firm of financial auditors has highlighted is that the product was taken out for the purpose of obtaining a tax advantage and securing an income stream. The report then notes the following:
- The contract of Equity Release was offered to pensioners as a way to improve their quality of living by providing an additional income stream (in addition to the false tax advantages).
- The contract does not clearly warn of the risks involved in the transaction -interest rate risk, exchange rate risk, price risk, market risk, operational risk, lack of liquidity risk, early redemption risk (on the side of the bank)-
- It is considered to be a high-risk complex instrument.
- The contract does not include the TAE clause (in English, APR or Annual Percentage Rate)
- The ability of ever producing a result as advertised by the bank and agents, irrespective of the investor profile, is very low.
- For a low risk investor, the product has an almost 100% probability of producing a negative result from the very moment it is signed.
- The product is classified as “high-risk” and not suitable for a low risk investor.
- The client profile, highly conservative retail investor, had specific and concrete requirements and as such, had they known the type of investment they were getting into, these contracts would have not been taken out.
The reports will be used in the legal claims that are being filed against banks who marketed, offered and mis-sold Equity Release products to a very large contingent of pensioners residing in Spain.
A very interesting and pertinent report from a well respected company. I think we were all aware that the equity release schemes sold by many banks in Spain were mis-sold for these very reasons,so it will not come as a surprise to many of the victims caught up in these schemes. Whilst the reports only refer to a couple of banks we can safely assume that all banks are guilty of the same. It does seem that although this is taking some time Lawbird are collecting some useful data, which will be very useful in the court cases that are about to come to fruition.
I am sure all our members will find this of interest and take some positive reaction out of this. It is interestin g to note that some of our members have issued proceedings in the HIgh Court in London against some banks. We have been informed that Independant Witnesses in the UK have come to the same conclusion. It would appear to us that these schemes whichever bank sold them must have known at the time that they were loaded very much in their favour. We have come to the conclusion that these banks are procrastinating in not talking to the victims lawyers in the hope that the longer they drag this out some of the victims will have passed away. Of course if this were to be the case then the beneficiares will have the unfortunate task of picking up the pieces. What a load of !!!!ankers these banks are. Ooops another typing error.
By the sound of it they did nothing to safeguard their victims. I use that in a very loose way as they were not clients but VICTIMS to the greed of the banks and IFA’s (non registered) to do nothing else but line their own pockets. I believe without question that all these unfortunate retired expats signed up for the reason that they would legally avoid paying taxes. For what other reason would they enter into such a contract. They were all retired, without mortgages, they had no need to enter into such schemes. Purely as a result of the hard line tacticks of these unscrupolous banks and their agents/IFA’s. May they rest in hell!! I would agree with the comment that they are hoping that their vicitms die before these cases come to court. How obnoxious is that. They are nothing but a load of thieves, tricksters and !! ankers to boot. Is it any wonder that there is no trust left in the banking system and probably never will in the future.
It is horrifying to think that the procrastinations of all these banks who ‘legally’ offered all these financial advantages as this delay will allow the pensioners who signed the contracts with unqualified IFAs, to die before the banks can be brought to task and are tried in Courts of law. This means that we must put pressure on the courts to act in the names of the pensioners who have been robbed of all their wealth and some of whom have lost their homes as the banks repossessed them. When you consider the banks, Danske, Nordea, Landsbanki, Jyske, all sold these plans to several hundred old people knowing that they would never have any of the benefits offered by these banks since the countries they lived in would not permit them to avoid Inheritance tax, then they were totally cheated and the banks must be made to pay for this deceit. One route to be chased is to prove that the contracts are illegal and have them cancelled by the Judges and have the mortgages against the properties rescinded. Once this proof has been established then a precedent has been generated and the next step will be to sue the banks for damages.
I would agree with all that has been posted. Even with the mounting evidence that erva and their lawyers have accumulated and posted on this site and I am sure this is not everything, the banks still are not responding. Evidently the banks, their rogue agents and unregistered IFA’s, put their own profits, bonuses and commissions above the lives and welfare of their so called clients. We have heard of untold mental stress that these pensioners have suffered at the hands of these disgraceful entities. We have heard that some victims have died due to undue stress, possibly atributed to the worry of what they may face. Perhaps you are right that they hope that the longer they drag this on the more people will succum to the stress and give up their life. Would they let this happen to their loved ones, I bet not as they would never have allowed their own parents to enter into such a scheme.
It seems that such a report is crucial to our cases once they come before the courts. Is it the intention of erva to have similar reports for all the banks concerned. I agree with Sarah, that the banks are more intent on putting both financial and mental stress on their victims. Surely we should not be going through all this stress, these are the twighlight of our years, a time where we should be enjoying the fruits of our retirement.
Karen erva did not commission these reports, the lawyers acting on the instructions of their clients asked for these to be produced. As you know erva is a non profit association and is not funded from any source other than the few dedicated helpers out of their own pockets. However we are blessed with having an excellent law firm (Lawbird Legal Services, Marbella) keeping us on the right path, they also do this at their own cost which we are eternally grateful for. As you can imagine a lot of man hours have gone into the preparation of these reports and they do cost a reasonable amount of money. Erva do not have the funds to commission such reports. Having said this we have negotiated very good rates from Muntaudit in the hope that more victims will share the cost between them to have a report commissioned on their respective banks. We do believe that such a report will be somewhat crucial as part of the case and will assist the judge in making his judgement. In Spain unlike the UK the judge who listens to the case will not neccessarily be sufficiently well versed in this type of financial transaction and a report such as this will go a long way in his judgement. We would advise all our members to speak with their respective lawyers and ask for such a report to be commissioned, get together with other victims and share the cost. Those members who are represented by Antonio Flores should get in touch with him and ask if such a report would help in their respective case.
The truth of the matter Euan is that these products were “ILLEGAL” and the banks either knew it or should have known it. They should have thoroughly investigated all the rules and legislation including “Wealth & Inheritance ” taxes before they brought these products on to the market, as did the Spanish Banks. If you recall in a recent post NOT ONE Spanish Bank got involved in these products, as they knew the score. Danske Bank, Nordea Bank, Rothschild, Barclays Bank, Nycredit, Sydbank, Landsbanki and a host of other foreign banks could not wait to get there hands on the pensioners hard earned lifetime savings. They were too intent on profit, bonuses & commisssions to care for their clients, they knew they were easy pickings in a foreign country. You are right in saying that the only way these banks will be brought to account for their actions is through the courts. Then guess what their reaction will be ” WE ARE SORRY” How many times have we seen this in the press recently, only when they have been rumbled do they come out with these words, which to them mean nothing. They know what they have done, now is the time to say “SORRY” and settle with their victims.
Thanks for responding erva. We are all grateful to erva and Antonio for all the hard work and dedication you have shown in helping all of us, the members should show their gratitude by commenting on all posts, however insignificant they feel their comments are. We should not leave everything to but a few members, I am sure that erva and Antonio spend countless hours investigating these banks for all our benefit, so lets show our appreciation by getting more involved. On another subject: when you read the results of the independant report, we can see with the brief explanation provided that the banks must have been aware that the product they were selling was not viable for the class of person they sold this to. Didn’t their own compliance department review these schemes, surely they must have done to be fully transparent with their clients. Perhaps they did but were blinded, as has been stated by greed. I will certainly be in touch with Antonio regarding such a report with my bank and will be asking each of the members to dip in with a little cash. It might help if we could have some idea as to the cost of producing such a report.
I find it incredible that even after all this time people still have the thought that the banks who sold this ghastly product may not have known it was illegal or designed to reduce participants to penury.
If that were the case they should not be in the job, like many.
It has long been my view they did it on purpose and with malice of forethought bearing in mind it all happened when the markets were high and property prices were increasing day by day. They aimed to make a lot of profit from all of us.
Now the property market has crashed and lo and behold the banks are faced with paying out more than the property is worth that the equity was released on. Poor them. That will teach them to over value.
No wonder they are dragging their feet and praying we all drop dead.