Lender reference:
Contents
But we were surprised when we examined this lender's customer relations record at how little criticism there has been of the way it treats mortgage customers. We know of a couple of borrowers that have served writs on it but not the outcomes - which usually (and we stress: usually) means the lender has caved in but only if the borrower agrees not to a confidentiality agreement.
The most significant event in its treatment of mortgage customers was the suicide in 1997 of an elderly gentleman on the day this lender repossessed his home. We have also received a couple of complaints from borrowers who claimed this lender is quick to begin repossession proceedings.
But overall, there is little evidence that this is a bad lender. We think the problems it causes applicants through its credit scoring anomalies are due to its reliance on computers. Some other criticisms people have made of it have centred on poor distribution of important notices. This suggests that this lender needs to fix its administration support rather than its attitude to mortgage borrowers.
This is the one lender we would use; based on all the lender information we have available.
Customer criticism
Most of the criticism customers have made against this lender relate to its refusal to recognise handicapped, elderly and one half of joint mortgage owners as members eligible for windfall conversion shares. It says that is because they did not have voting rights, primarily because many of them had handed their financial responsibility over to trusts. MPs, the press and the Church have severely criticised it over this but it has refused to give in.
Press criticism
The press has frequently criticised this lender for its attitude to customers during its conversion. It has also been criticised for high premiums for Mortgage Indemnity Guarantees and other property-related insurance.
Press criticism of this lender is remarkably low.
Miscellaneous
None
1998 September
This lender paid a customer compensation after threatening her with debt recovery proceedings for a debt she did not owe. It acted after press criticism of the threatening tone of its debt recovery letter.
1998 July
Press criticises lender's staff for allowing anyone to draw thousands from saver's accounts because staff did not check drawer's identity.
1998 March
Expatriate customers prepare to take the lender to court, claiming it treated them unfairly when it converted to a bank. Press criticise lender for treating young customers badly during conversion.
1998 January
Court orders lender to pay £1,500 to customer whose conversion shares were delivered late. But lender says it will appeal.
1997 October
Bank vows to go to court rather pay out conversion shares to customers under 18. Press call its policy "shameful".
1997 August
Press reports lender's reluctance to pay conversion shares to 19,000 handicapped customers.
1998 May
Press inquiry "encourages" lender to compensate mortgage customer who lost out over lender's delays in delivering conversion shares. Lender had fought customer over the issue.
1997 December
Lawyer prepares to sue lender for denying conversion shares to elderly customers in some circumstances.
1997 November
Lawyers claim the lender was wrong to deny conversion shares to youngsters.
Customer prepares to sue lender over late deductions from her account that stopped her getting windfall shares.
Couple criticises lender for denying them information needed to make a windfall share claim.
1997 October
200 expatriate customers announce they will sue the lender over its refusal to grant them windfall shares.
1997 June
Press criticises lender for alleged discrimination against mentally handicapped customers over conversion shares.
Ombudsman counters lender's claim that it has received few complaints over its conversion to a bank.
1997 March
Survey claims lender's house insurance premiums are higher than competition.
Press criticism over its refusal to give all mortgage customers conversion shares.
1997 February
Lender ignores criticism by MPs, press and public to compensate customers that it excluded from receiving windfall shares.
Press criticise its use of "inflexible" computers to decide who should get a mortgage.
Customer remains penniless after the lender fails to properly freeze a joint account - allowing her husband to take out £2,500.
Couple issue writ against lender claiming damages for misrepresentation, breach of contract and negligence
1997 January
Customer kills himself on the day the lender was due to repossess his house.
Court cuts mortgage damages claimed by lender saying it should have checked borrower's ability to pay more thoroughly.
Insurers and customers criticise the lender for charging customers high mortgage-related insurance costs and bullying them into paying even more.
MP presses for new law after lender denies many customers the right to windfall shares.
1996 December
Press cites lender in a critical article on high cost of Mortgage Indemnity Guarantees.
Press criticism over mistakes in its conversion share allocations.
1996 November
Lender criticised for turning down mortgage customers with clean credit records while refusing to say why.
Severe press criticism over its refusal to give windfall shares to handicapped customers.
1996 September
Lender criticised for turning down mortgage customers with clean credit records.
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