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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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BFCSA: Our story - I won my case in December against Provident Capital - PC are still trying to get $700,000 from me, even though I had $1.94 in the bank

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I won my case in December against Provident Capital - they will get no more from me, but have a $30,000 caveat over my home ONLY when it is sold, which could be in the next century.
1.Loss $1 million plus 3 investment houses
2.No longer with FOS - they said our claim was now too high
3. Advised by a broker -Areca Finance
4. Provident Capital have left me financially crippled, and with a husband who is now classified as being in need of high care for his dementia.
PC are still trying to get $700,000 from me although they have recouped the cost of what they lent us PLUS $1 million in interest.  I had $1.94 in the bank when they asked for that amount at mediation.....
Have heard nothing re class action against PC, although I joined up right away. 
I am battling to continue to work at 71, but as an Education Dept employee, who is permanent, I am OK- just
I have to have the energy to keep on.  I have ended  up with a mortgage of $840,000 on my home - interest   only - and my income just covers it.  If my husband has to go to a nursing home, I will be severely compromised.


I have sent all my details to the Fraud Squad after speaking to one of the sergeants but have heard no more. That includes the affidavit I wrote in September 2012 before I had to go to court.


I am now looking at the possibility of having a go at the so-called 'independent' lawyer we were sent to.


I had no idea why I was there, and thought he was Provident's lawyer, although I had to pay.


His testing included asking me the day, and my husband, the date.


His conclusion - his only notes - No sign of dementia…….Well, he was very wrong there....


I have already asked him for his notes, and his first reaction was "Is this for another lawyer?" and the second, "should I contact my indemnity insurer?"  He then lied in a letter about our conversation regarding the loan.


He did not go through the conditions of the loan, nor explain anything, particularly that it was a compounding loan.  He just got us to sign it.


I am about to have a knee operation which will give me time at home to have some kind of campaign against him, probably starting with the Law Board.  If there is anything Denise can advise re this course of action, I would be glad to hear about it.


My only hope of saving my home is to get some damages out of him or his insurer -- for my home, my health, my husband's health, the loss we made on the property, and the fact that it was an asset-based loan which has taken all our assets, and just about left me bankrupt.
However, I will not have to deal with PC again - except as part of Provident's class action if that goes ahead.
I must be one of the few who have just about won against them, and I am pleased about that.


Best wishes, Jenny
Subprime lender Provident to give nothing back to unsecured creditors

COLLAPSED subprime mortgage lender Provident Capital will return nothing to unsecured creditors, and investors will only begin clawing back capital as about $100 million worth of homes and other properties are gradually repossessed.

The Weekend Australian can also reveal that just three months before the $220m lender collapsed in July this year, Provident told investors it was confident it would stay afloat, despite 90 per cent of the loans it had made with investors' money being many months in arrears. Provident operated by raising money directly from ordinary investors or their self-managed superannuation funds and then on-lent that money to subprime borrowers seeking to buy residential property or to property developers.

The Financial Ombudsman Service has written to one Provident borrower -- who was seeking restitution from the failed company -- stating unsecured creditors would receive nothing.

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

That borrower had lodged a complaint with FOS claiming that Provident had provided them with a loan based on "fraudulent data", with "no due diligence" and that the company was unable to provide any copy of the documents relied upon to prove the loan could be repaid.

Provident receiver Marcus Ayres, of PPB, could not be contacted yesterday.

Among those unsecured creditors was executive chairman and managing director Michael O'Sullivan and legal counsel Malcolm Bersten, who were claimed to be owed $465,830 and $191,816 respectively.

Other unsecured creditors included KPMG, which was owed $44,000, and Perpetual Services, owed $64,625. Many mortgage broking firms were also listed as unsecured creditors, with those payments understood to be outstanding commissions owed by Provident in return for referrals.

In April, Provident reported against a series of financial "benchmarks", which debenture companies have been required to do by corporate regulator the Australian Securities & Investments Commission since a 2007 crackdown.

The group reported it had failed to meet the ASIC benchmark of having an equity capital ratio of 20 per cent -- Provident's ratio was 2.73 per cent -- and disclosed its huge arrears rates.

Regardless, the company said it was upbeat.

"Despite these challenges and having regard to the experience gained by the company through various economic cycles since it was founded, the company expects that it will meet all liabilities, including interest and principal payments to investors as they fall due," it wrote.

Shortly after that report, Provident's trustee successfully sought a court order to wind up the company, claiming it had made insufficient writedown provisions.

At the time of its collapse, Provident had 138 loans outstanding totalling $176m.

Of those, 95 were residential home loans, almost all in NSW and Queensland, with the subprime hotspots of western Sydney and the Gold Coast understood to be heavily represented.

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Guest Thursday, 24 September 2020