Capstone Mortgages – Beware!

By Guest Blogger Shaun Parker

Capstone Mortgages – Rip Off

If you are contemplating using Capstone Mortgages then you may want to read about my experience which is similar to many others, you may well want to think again.

How is this done?
Well its quite simple –

• First you must be one of the unlucky people to have taken a mortgage out with them or their other face which is ‘Preferred Mortgages’.

• Then what you do is get your own house insurance because the home insurance they offer is not competitive.

• Then on the anniversary of that insurance you renew your policy as normal because its value for money.

• About two months later Capstone start sending you letters telling you that your mortgage is in arears.

• Your name is then entered on an auto dialing system and their collections department start ringing you night and day but when you answer the phone hangs up immediately and you hear a message to urgently call them.

• You call them and stay on hold for up to 30 mins.

• When somebody answers you are accused of having mortgage arears and that your house it at risk if you do not pay up.

• After 15 mins you find out that what they have done is forced you to have their home insurance without you signing a single document and that the arrears is actually the £300 they have charged you for this privilage.

• After explaining that you have your own house insurance you are then told that you should of sent a copy to them and because you didn’t do this they can force their own expensive product choice on you.

• When you argue about this practice you are told that it is in the small print of your contract but when pushed they refuse to show you this.

• When by chance you discover that Capstone have a copy of your own house insurance on file because your insurance company sent it direct they still refuse to refund the money and continue charging admin costs.

When this happened to me I contacted the customer services manager after four months of Capstone telling me not to worry on the phone and then sending demanding letters through the post and threatening answerphone messages left on the phone.

This Capstone manager promised to sort it out and promised that the Capstone Mortgage Auto Dialing service and their collections team would leave me alone.

He also promised that the charges that should never have been levied would be rescinded. Now almost a year on I am still getting the same letters, the same threatening phone calls and the same charges being levied, whats more today I had a big suprise!!!!

You guessed it, one year on from the first attempt at extortion Capstone Mortgage Services have sent me a new letter for this years insurance, even though Legal and General faxed the insurance policy DIRECT to the Capstone HQ and Legal and General wrote to me confirming this.

That is another £300 added to my ficticious outstanding account!!!!

I rang them immediately and was told by customer services once again that this was an error and that they would refund the cost of the insurance, however, they cannot refund the charges because that is the collections department who are independent. I then found out that last years insurance was refunded but only to the tune of 50% , the other 50% they requested from Legal and General who quite rightly told them to get stuffed so they levied it back on me.

Now considering that they cannot show me my original contract or where I am bound to take their insurance without signing for it, even though I have asked repeatedly to see this contract, also considering despite this lack of proof I have complied with their wishes and so has a leading insurance provider, how can this practice be legal and not outright extortion?

When you investigate further it becomes clear that this practice is designed to bully people into giving Capstone Mortgages money under the pretence of mortgage arrears.

It does not make sense to avoid factoring this story into your decision making process when looking at mortgage providers – Capstone Mortgages would be the last company I would use and I will not roll over and just accept this immoral and unethical practice either.

Read Shaun Parker’s Blog Here:

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By Guest Blogger Shaun Parker

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7 Responses to “Capstone Mortgages – Beware!”

  1. Doreen Says:

    In regards to Capstone/SPML/Acenden I too is a victim of the blood suckers. I need any type of help or iformation available that I can use to fight these people. There must be someone out there who can help me. I took out a loan with SPML in Janaury 2006 in December of 2006 I had a stroke and was in hosptal for 2 months. I suffer a right sided CVA. My daughter inform them of my misfortune and begged them not to incure any extra charges but they took no notice. Since then they have taken me to court 4 times and whacked on alll different charges which amount to nearly £5000 pounds. I am paying them £300 pounds a month but its still not enough.

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  3. Mike Ellis Says:

    Sometimes it’s hard to see what’s really going on in a company like Capstone, especially when you are being harassed about mortgage payments and the mind-blowing frustrations that are heaped on by unscrupulous companies who have “Call Centre’s” that are as helpful as some social disease.

    I find many times that things are not what they initially seem to be. The following information might be food for thought!

    ————————————————————————————–

    One source says, “Allegedly thousands of Capstone Mortgages have been liquidated, 28000 in less than 3 years about 25% of the entire loan book.

    Me thinks that this stinks of rotting fish!

    Why would any company wish to disseminate their mortgage book if there wasn’t some underlying reason? Have you heard of “Forclosuregate” in America, Google it and read all about the fraud therein. Karl Denninger, author of “Market Ticker” has some really mind-blowing information to read.

    What started me thinking was this statement by Martin Frazer in some of Capstone’s PR spiel: “and in contrast to properties being repossessed it’s good for our clients, good for the people who own the loans and good for borrowers as it helps them to stay in their homes.”

    Notice “people who own the loans”. You mean that Capstone don’t own the loans? Can Capstone reposses properties that they don’t own? Do they have the “Title” to the property? Seek advice from your solisitor if you are in this position! Forclosuregate isnt about people not paying their mortgages its about fraudulant applications to courts to evict people! The paperwork has to be correct to reposses!

    Call me suspicious, but remember , These “Ascending Stars”, especially Capstone’s current chief executive, Amany Attia, was a driving force in setting up the original UK Lehman-backed mortgage businesses which went under the names Southern Pacific Home Loans, Preferred Mortgages and others.

    The now collapsed USA Lehman Brothers failed to a great degree because of their “Off Balance Sheet” investments, not worth what they said they were. Similarly, Goldman Sachs, another Bankster Company, allegedly sold worthless, sub-prime mortgages, (for sub-prime read “Capstone Mortgages”) as triple “A” investments (AAA=without risk) to investment companies. This wasn’t a problem until the housing market collapsed and repossessions were the order of the day. Guess what? The mortgages were a pile of used dog food!

    Why is the above relevant? Well, Goldman Sachs won both ways! They got paid massive amounts of money for supposedly “top dollar triple A investments” but when it all went wrong they also made massive profits because they “bet against these self same investments to FAIL!!” (I believe the process is called “shorting”). Why did they bet against the same product that they were selling?

    BECAUSE THEY NEW WHAT WAS IN THE “MBS’s (mortgage backed securities) and they new they would explode!

    Now, to the crux of my point, Amany Attia has some 20 years’ experience in the securitisation industry. She spent six and a half years at Citi and then moved to Lehmans where she worked in its mortgage and ABS groups until 2001. Then in 2001 she came to London to head Lehmans’ mortgage and securitisation business in Europe.

    I am not saying that Amany is involved here but likely she new about this scam, by association, and I don’t know if there is anythin funny going on here, but back to the 1st parragraph, why would Capstone want to illiminate 25% of their mortgage book? Have Capstone Mortgages been securitised on block? Is there some massive financial benefit to be had should their mortgage book be reduced to “0”?

    Perhaps the whole concept is to load on the charges, keep the scam going for months and then reposses, reaping large profits where there is some equity available on the property. If this is the case the Office of Fair Trading needs to know!

    Who knows? Perhaps some investicative journalisim might not go amiss.
    Ok, who am I? I am a Capstone Mortgage holder and yes we haven’t paid them or our 1st Mortgage, with Santander, for in excess of 12 months. The reasons, although traumatic to my family and me, are irrelevant. What hacks me off is this. Both mortgages have not been paid for the same period of time, however Santander (original loan £138,000) is in arrears by £8,000 but Capstone Mortgages (original loan £35,000) is in arrears by £ 10,750. Wow doesn’t that suck?

    I write this piece simply because of a phone call Wednesday, from some “Rude Bully” who thought he could threaten me with repossession. My second mortgage with Capstone is 100% “under water” (will not be paid) because of the valuation of my property should it go to repossession and auction (because of its current condition). Capstone and this rude adviser are aware of my property circumstances because we had a personal visit from an independent adviser working for them.

    I told him outright to reposses us, and then when he tries to take us to court, for their outstanding sum, including exorbitant charges, I/we would declare bankruptcy and they would forfeiture the full amount!

    I suggested that he attempted, with his head, something anatomically impossible!
    Guess what? A beneficial, to us, arrangement was made. LOL.

  4. archi Says:

    my names archi i took out a morgage with southern pacific morgage limited i had so many problums i get letters saying i must pay 85 pound every mouth iv got insurance of my own but still the same thing please dont tell me that going to court will help because i went to canterbury court and the judge wos moor then a joke im so up set because nobody can give me help and i cant read or write as u can se if we can try to find somebody who can help i will never give up fighting i pay so much arrears i cant keep up my morgage i wrote to the financial ombudsman service thay told me thay are very busy at the moment we must stay togher and never give up fighting please if any one can find a way you can email me at tmarchbold@googlemail.com take good care and try to find somone who can help thanks you

  5. Boz Says:

    S. Long.

    How come your daughter’s husband’s name ever appeared on the mortgage deeds if it was your daughter that owned the house before shed met him ?

    I ask because I can only assume that your daughter allowed this to happen for whatever reasons, maybe an increase in the mortgage or just maybe because she thought it was a good idea because she was married.

    BUT if she did not want his name on the deeds and it was something to do with Capstone forcing her to add her husband’s name, it sounds it could have been ‘illegal’ and actionable.

    Out of interest, what were the circumstances of the husband’s name being added ?

  6. S. Long Says:

    my daughter and her husband have separated and Capstone will not remove him from the mortgage to allow my daughter to sell her house – the house belonged to her before she met her husband and he was working when they married but gave up work shortly after and has not worked for the last 5-6 years as he is mentally ill and AA. Her solicitor drew up paperwork for her to take his name off the mortgage but they refuse to do this. As he emptied her bank account ( not having one of his own ) she could ill afford the money for legal help and now her and her young son have to stay in the house and have him harrass her on a daily basis. No-one should touch Capstone with a barge pole.

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