Below is an informative letter sent to Rothschild potential claimants.
Dear Sir/Madam,
We hope this email finds you well.
The purpose of this email is to confirm that we will be lodging our claim against N.M. ROTHSCHILD & SONS for misleading and illicit advertising with the Courts in Malaga (Juzgados de lo Mercantil) next Friday 7th of June 2013.
We have experienced some delays due to not having documentary evidence which we consider to be relevant, as well as an unexpected Court filing fee that came into force shortly after our decision to file which meant that the case would have cost an additional 15k Euros to proceed with.
However, we can now confirm that we are now in a position to proceed as we have gathered a compelling amount of misleading advertising that constitutes the backbone of the case that is being filed with the Courts (to be posted at the ERVA -www.erva.es site over the weekend).
The referred to advertising was produced by Rothschild and also, by the IFA companies that were selected by Rothschild to sell the product. This advertising is false, untrue and encourages tax evasion by suggesting that Spanish Inheritance Taxes are so onerous that is nothing is done, inheritors of Spanish unencumbered property owners would be prevented from inheriting and the property would be lost to the Spanish State.
Other fallacious arguments include stating that the Rothschild mortgage is different from a normal mortgage, that the clients “…will not be exposed to unnecessary risks”, that the product “…is designed in such a way that it will potentially produce enough income to service the loan and also, leave a bit of money for the borrower”, that it is a “…responsible product” or “…similar to the Spanish reverse mortgage”, that Rothschild had “…restricted the availability of this product to handful of selected intermediaries” (Hamiltons and Henry Woods), that a “…Mrs. Smith (fictitious person) would have discovered following the death of her husband, to her horror, that IHT in Spain could reach 81.60% in Spain” (when the maximum liability of a spouse is limited to just over 34%) and many more.
Similarly, deliberate omission of the risks involved in the product are considered to be misleading and therefore, illicit. As an example, Rothschild deliberately concealed the consequence of the very obvious and unavoidable scenario where the investment does not cover the cost of the loan: you lose your home.
The writ includes several petitions to the Courts: that the advertising is declared illicit, that Rothschild runs at least 4 ads on the Essential Magazine rectifying the misleading publicity (at their cost) and that all contracts signed as a result of such publicity are set aside, restoring customers to their original position prior to signing of the Credit Select mortgage loan, insofar as is practicable.
Finally, we would like to stress that some IFAs are currently advising against going to Court and are recommending what is called as a “Standstill Agreement”. We would like to advise that such document is a legally useless agreement that does not deal with the fraudulent nature of the CreditSelect loan and is designed to buy time for Rothschild, who prefer to deal with the less belligerent children of their victims as they pass away. In other words, it is a cynical money-making ruse designed at the expense of perpetuating the suffering that N.M. Rothschild & Sons is inflicting on innocent property owners.
If you have not yet joined this case and you wish to, kindly reply to this email so that we can provide you with the necessary instructions.
With best regards
Sincerely
