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BFCSA investigates fraud involving lenders, spruikers and financial planners worldwide.  Full Doc, Low Doc, No Doc loans, Lines of Credit and Buffer loans appear to be normal profit making financial products, however, these loans are set to implode within seven years.  For the past two decades, Ms Brailey, President of BFCSA (Inc), has been a tireless campaigner, championing the cause of older and low income people around the Globe who have fallen victim to banking and finance scams.  She has found that people of all ages are being targeted by Bankers offering faulty lending products. BFCSA warn that anyone who has signed up for one of these financial products, is in grave danger of losing their home.

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Provident Capital: Unsecured creditors ~ to receive nothing!!!

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Unsecured creditors to receive nothing from Provident [13 Oct 2012] 

Sub-prime mortgage lender Provident Capital's unsecured creditors will receive nothing following the firm's collapse, while other investors will only begin to receive some capital after some $100 million worth of homes and other properties are slowly repossessed, according to The Australian. 

The newspaper also reported that Provident had told investors only three months before it collapsed in July that it was confident the $220 million lender could stay afloat.

That pledge came despite the fact that 90 per cent of the loans it had made using investors' money were many months in arrears. 

The firm used investors' money or their self-managed superannuation funds to in turn lend to sub-prime borrowers buying residential property or to property developers. 

News that unsecured creditors would receive nothing surfaced after one Provident borrower received a letter from the Financial Ombudsman Service. 

“The receiver has informed FOS that there will be no money available to unsecured creditors of Provident,” FOS deputy officer Jasmina Jukic wrote, according to The Australian. “This means there is no money available to pay you any compensation.” 

The borrower had lodged a complaint with FOS over claims that Provident had provided them with a loan based on “fraudulent data”, with “no due diligence” and that the lender was unable to provide any copy of the documents relied upon to prove the loan could be repaid, The Australian reported.

http://www.businessspectator.com.au/bs.nsf/Article/Unsecured-creditors-to-receive-

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Comments

  • doyla66
    doyla66 Thursday, 01 November 2012

    Do they ever follow the money trail?

    It appears they are only good at following paper trails when it is the money trail that will show where those funds have ended up & in whose pockets.

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