Banking Misconduct and the FCA

Chris Ruane Excerpts

Thursday 10th May 2018 Commons Chamber

[Chris Ruane (Vale of Clwyd) (Lab)]

I wish to use these few short minutes to quote from a letter given to me by Martin Wickens, a chartered accountant who has worked closely with my constituent George Jones, a farmer in my constituency, and with hundreds of other farmers and small and medium-sized enterprises across the country that have fallen foul of the predatory behaviour of many of the banks, accountants, surveyors and solicitors who have perpetrated these crimes. Many of the tactics outlined in Martin’s letter were used by those involved in taking money from those SMEs. I want to put an extract from his letter on record in the hope that those who should be investigating these matters will take his evidence seriously and investigate with more vigour. Martin states:

“Despite numerous Complainants reporting the matter to the Police, Solicitors Regulation Authority, Serious Fraud Office and Financial Conduct Authority the matter has not been investigated and repossessions continue. The documentary evidence examined allegedly shows, inter alia, the following in support of the position outlined by The Rt. Hon. Elfyn Llwyd MP and Barrister in his Westminster Debate on the 11th November 2014.

1. Undisclosed conflicts of interest by associated Solicitors, Valuer, Mortgage Broker, Lenders, Business Advisor and LPA Receiver.

2. Valuation Rigging.

3. The payment of substantial secret commissions of up to £92,927 by Commercial First Business Limited to UK Mortgages & Finance Services Ltd, a UK Acorn company.

4. Mortgage Churning and entrapment through destruction of the equity of borrowers by the creation of a vicious spiral of debt by unnecessary and excessive interest, fees and charges in favour of the associated Solicitor Lenders, Mortgage Broker and Valuer by a succession of highly expensive bridging loans.

5. Regulated mortgages advanced as unregulated loans when the lender is not authorised or regulated to do so.

6. Conspiracy to defraud and Document forgery.

7. False accounting and business plans, misrepresentation, unfair relationships in favour of lender, breaches of fiduciary duty and trust, including non-fulfilment of promise to transfer borrowing to cheaper lender.

8. Breach of The Law of Property Act 1925 regarding LPA Receivers fees.

9. Little or no due diligence by lender…and asset based lending with no exit route other than repossession. The average age of the Commercial First Business Limited borrowers is 90…in one case 95…at the end of the 25 or 30 year mortgage term.

10. Separate mortgages on house and land to increase power of lender on repossession and advances to a limited company formed for that purpose which converts a regulated mortgage into an unregulated product with loss of legal protection including that for minors.”

I quote at length to prove to the Minister that these serious charges and allegations cover things that have been happening for 15 years, and nobody has been brought to book.

Will the Minister meet me and Martin Wickens to discuss these serious issues and to make sure they are rectified?