Sunday, April 18, 2010

Just Plain Ordinary Crooks

Question: Why didn't the people from GE Money actually phone at least one in five of their proposed lenders to check their bona fides?

Answer: Because GE Money was just as greedy for business as the little crooks from Tasman Mortgages and the big crooks from their parent company BlueChip.

One of the oldest tricks in the book is for the broker to take away a blank form and then fill in the details later. How convenient. In this case, false occupation details were used to avoid the rejection the crooked broker knew would result from inclusion of the true occupation - 'retired.'

Adolf has first hand knowledge of a few other little tricks used by the little crooks at Tasman. He overheard one day the chief little crook instructing the new chum little crook on the manner in which the forms should be completed.

"Don't ever say they have two cars, even if they have two or more. That will reduce the amount you can get approved. Always fill in 'one car.'

In the life insurance industry, where a broker fills out an application in his own writing (and sometimes there are genuine reasons why this is done***) responsible insurers send a copy of the completed application to the client with a verification request before any policy is issued. You see, legally, the application form, along with the policy document, comprises the contract between the parties.

*** You'd be surprised how many wealthy young farmers are extremely dyslexic or in fact almost unable to write anything other than their names.

8 comments:

CB said...

Holy crap!

That explains why all these retired people were getting huge loans. I couldn't for the life of me work out how banks were lending 400K to retired people.

Now we know they we all low doc loans with forgeries .

This now puts a spanner in the works as it would now seem to make all of those contracts null and void.

If you sign a contract you MUST always get a copy of it. Read the Contracts Act people, it will save you a lot of grief in situations like these.

Anonymous said...

Question: Why didn't the people from GE Money actually phone at least one in five of their proposed lenders to check their bona fides?

You mean proposed borrowers?

CB, what's this "Contracts Act" you refer to?

Lou Taylor said...

As long as greed is a human trait, fools and their money will be parted.
I suspect that none of the signatures on these "contracts" will be forgeries.

CB said...

Anon, sorry not Contracts Act, Law of Contract or Contract Law.

UA do a course on it which I would recommend everyone does:
http://www.shortcourses.auckland.ac.nz/courses/73/

Anonymous said...

Doubtful CB. They're probably got highly paid lawyers to draft the documents.

No one really wins here except the middle (people). The borrowers are geared up with loans they cannot payback while the lenders have security over collateral that's probably worth less than their loan.

The question is will Jane Diplock take time out of her busy schedule of overseas conferences proclaiming NZ to be a regulatory 'centre of excellence' to do her fucking job and put some cunts in jail in the same decade as when they defrauded their clients.

Adolf Fiinkensein said...

Anon.
Yes of course it's meant to be borrowers. Written in a hurry.

And yes with regard to the much traveled Jane Diptick

David said...

Under the CCCFA the borrower has to be given a copy of the contract, its in the law and finance companies have been prosecuted over it. Having been on the other side under Sian Elias who voided a contract for a guarantor I am surprised these borrowers havent won.
I have zero sympathy for Blue Chip investors, they knew how much they were borrowing and they all had houses and no doubt got interviewed by their bank managers back in the day to get them.

Adolf Fiinkensein said...

David, obviously it is time for the provisions of the Life Insurance Act to be enshrined in the CCCFA whereby the signed application becomes an intrinsic part of the final contract between borrower and lender..