Registered towards the end of the last Parliament the APPG ~ Against Financial Exploitation with its’ Chairman Lord Ahmed, and Vice Chairman Alan Keen MP, together with its secretariat to the APPG, SAFE [Struggle Against Financial Exploitation Limited, a company limited by guarantee], raised a number of matters, at the highest level in the Treasury, banks and British Bankers Association on behalf of its growing number of registered members, (throughout every constituency). SAFE continues to compile a national data base which is identifying ‘systemic fraud’ throughout the UK, seemingly endorsed by the ‘Establishment’ to protect the illusion of probity of the banking industry.

The problem areas identified can be broadly described as:

• Bank, Mistake, Malpractice, or Fraud, which includes, overcharging, either by mistake, or deliberate, (known as ‘grazing/loading within the industry), forgery and blatant deception, which is defended, with no expense or skulduggery spared.
• Shared Appreciation Mortgages, ‘SAMS’, at present only about 10% of the 15,000 of these mortgages have attempted redemption, but the ‘profit’ of the lending banks is so extortionate, equal to 117% p.a. leaving the borrower without enough equity to even downsize to the smallest of properties. This usury is further exacerbated by the fact that certain lenders have seeded the mortgages in offshore tax havens, although managing them from their UK banks, thereby defrauding the Inland Revenue and their own shareholders.
• Ex-Lloyds Insurance Names, it is estimated that some 32,000 Ex-Lloyds Insurance Names became affected by EU Directive 2001/17/EC on 1st July 2005, which requires the UK to harmonise their insurance industries so bringing about:
  1. Blanket winding-up proceedings by way of a single FSA bankruptcy order:
  2. Provide ‘absolute privilege’ for policy holders of an insolvent insurer;
  3. The sequestration of the assets of Names including those assets upon which there is a formal charge, (13) & Article 10 s.1.
  4. Lloyds themselves have also given notice that they will conform to the Directive from 1^st July, and in doing so they side step their contingent ‘Unlimited’ liabilities.
• Deception by the Establishment. In 1997 eight members of SAFE Petitioned The Bank of England claiming the Bank had been negligent in applying control over the High Street Banks. The Bank denied it had a responsibility to act and prevaricated until the formation of the FSA a year later. The FSA also maintained they were not responsible for the malpractice of banks, however, the Memorandum of Understanding Between HM Treasury, the Bank of England & the FSA states,
  “Litigation
  20. The Bank will retain responsibility for any liability attributable to its acts or omissions in the discharge or purported discharge of its banking supervisory functions prior to the transfer of these functions to the FSA and shall have the sole conduct of any proceedings relating thereto. The two institutions will co-operate fully where either faces litigation.”

   

• Preference for Pension Funds
  When the convolutedly named ‘Enterprise Act 2002’ came into operation in the Autumn of 2004 the Inland Revenue & Customs & Excise lost their ‘Preferential’ status, namely they ceased to have first claim on the assets in an insolvency, this gave the ‘Secured Creditors’, (the Banks), first bite of the asset apple. In light of the excessive profits which continue to be declared by banks the law should be changed to give employee Pension Funds ‘Preference’ in the event they have a shortfall, or have been raided, i.e. Employee Pension funds should have the primary position so the banks and other ‘secured’ creditors are subordinate to them.
• Insolvency Industry ~ Deception.
  The Enterprise Act 2002 retrospectively causes the 1986 Insolvency Act to be changed so that a bankruptcy is closed within THREE YEARS of the Bankruptcy. However, the Insolvency Industry, in cahoots with the DTI is allowing bankruptcies to be re-opened fifteen years after discharge on the misrepresentation that the Law gives them until 31st March 2007, i.e. Three years from the date of implementation of the Enterprise Act. This has caused a massive increase in home repossessions.

SAFE Proposal,

(Tabled to the Treasury October 2004, and later the BBA).

Not only will this save the banks over a £billion in costs a year, but it will free up 20 ~ 25% of court time, put back into the economy £billions by way of re-motivated productive small businessmen and save £millions in Benefit payments and National Health costs.

The Ombudsman and FSA have a conflict of interest and are seen as part of the establishment who will protect the banking industry. Similarly the police and judiciary ere towards protecting the probity of the banks to the detriment of the victim, (the Police/CPS have never brought an action against a High Street Bank!).

The complaints will be dealt with confidentially and fairly in conjunction with the banks and the Establishment, so if say 20% of the unclaimed assets fund was to be used to bring ‘closure’ by the application of the SAFE formula the complainants’ claim could be investigated and if deemed legitimate be quietly settled from the fund.

12th July 2005
Group Patrons
Alan Keen MP, Dr. Rudi Vis MP, Lord M Sudeley FSA.
Secretariat, (in waiting), to the All Party Parliamentary Group on Financial Exploitation
SAFE is a Company
Limited by Guarantee Registered in England and Wales. No.4853224
Registered office 69 Sutton Road, Heston, Hounslow, London TW5 0PN