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Swift investigated by FSA over arrears handling

Swift Advances is being investigated by the Financial Services Authority over its handling of customers in arrears and has set aside £9.4m to cover a potential fine and other costs.

In its annual accounts for the year ending March 31 2010, the first and second charge mortgage lender says the group received formal notice of the FSA’s decision to commence an investigation into aspects of its arrears handling and lending practices on July 31 2009.

It says the group is co-operating fully with the on-going investigation.

Its accounts also show the group has identified an anomaly in its mortgage administration system in respect of the determination of the amount due by some customers for early settlement of their mortgage, which has resulted in customer detriment.

The group says it has resolved to undertake a redress programme for those FSA regulated mortgage customers and unregulated mortgage customers affected.

its accounts say: “As a result of the above the directors currently estimate that the group is likely to incur £9.4m of costs, comprising £1.4m in respect of costs already incurred and £8m in respect of further costs that could be incurred, relating to legal and professional costs, a potential fine and costs implementing any redress programme.”

The Essex based lender filed its accounts on December 9 2010 and it is not known whether the FSA has taken any action against the lender or intends to.

Swift Advances is also subject to a similar industry investigation being conducted by the Office of Fair Trading into the practices of lenders in the second charge mortgage market. Its accounts says it is also co-operating fully with this investigation.

It accounts say: “On November 10 2010 the OFT advised that it is minded to impose requirements under section 33A of the Consumer Credit Act 1974 in relation to activities which are conducted under Swift Advances and Swift Securities Limited credit act licences.”

Swift Advances is regulated under the Consumer Credit Act in respect of second charge lending and Swift 1st is regulated by the FSA.

GMAC-RFC, Kensington Mortgages and Redstone Mortgages, have all been fined for arrears management failings and the FSA has revealed it is investing a further five firms.

When contacted by Mortgage Strategy Swift was unavailable for comment.

The FSA says it cannot comment on individual cases.

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Comments
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  • Anonymous 8th July 2013 at 2:35 pm

    How is it that this Company can get away with loan-shark interest on 2nd mortgages which are ‘supposed’ to be libor rates … then why is it that we mortgagees see no repayment of the libor rate scandal affecting our mortgages?? Come on FSA .. sort it.

  • Angel-Stingray 23rd June 2012 at 11:35 pm

    Started a new thread on Consumer Action Group to come together and fight Swift Advances in the courts. Come join and let’s see if we can end the misery and pain they are causing.

    Angel-Stingray

  • darren davison 17th April 2012 at 12:13 am

    I had a 2nd change by swift £30.000 payed £54.000 now they say I got to pay £48.600 to pay this off or there taking my house help please

  • jo 9th December 2011 at 7:55 am

    pensioners had a loan 62.000 repaid 65.960 they still want 25.000 for extra interest, wont allow redemption at moment wont back down, have lawyer on to it we are 66 and 69 keep in poor health what chances do we have and what else can we do fla not interested they are on the side of swift even tho they have been fined for over charging customers.

  • sandra 2nd November 2011 at 3:24 pm

    how is it when bank rates go up payments go up but when bank rates fall payments stay the same they have totally ruined our lives.

  • michele 25th August 2011 at 11:16 am

    I am at my wits end with Swift, had a £8,800 loan secured on the house, thought we had paid it up now they say we owe another £13,000+ cant afford a solicitor, just dont know what to do????????

  • andrew 2nd August 2011 at 12:22 pm

    if you have a problem with swift and the libor rate sold to you with out your knowledge contact Eddie marshall at personal reclaims and then Ashworth Law after you have had a report done by Personal reclaims into the misselling of your aggrement.

  • LF 4th April 2011 at 4:06 pm

    Wanting to investigate myself being a receiver of these shocking day light robbery fees. £6K loan now owe £17K?!?!?!Look forward to hearing more.

  • LF 4th April 2011 at 4:06 pm

    Wanting to investigate myself being a receiver of these shocking day light robbery fees. £6K loan now owe £17K?!?!?!Look forward to hearing more.

  • g.d.morgan-lewis 3rd January 2011 at 3:44 pm

    I am a swift victim for want of a better term. Paid for 10 yrs, 10 years to go, charged for arrears that never were. Paid always in advance. Told still owe as much as borrowed 20k, redemption fee 48k. What will happen if Swift go broke to people like me, what will happen if they dont. I have an agreement for 240 months, They have said that they will add 10 years to this when I retire in 2022. How can they when I pay what is required and on time.They seem to do as they like and i fear that they will take my home.

  • andrew 21st December 2010 at 4:29 pm

    Perhaps the FSA should look at Acenden/Capstone’s astonishing thirst for repossessions is not guided by a policy of fairness, It is a means of first resort of a destructive and reckless agenda to drive down the mortgage book. They are nothing less than desperate to repossess as many homes as possible. When they had 107,339 mortgages on their books in August 2007 and now have approximately 79,000 what can anyone honestly say has happened to the 28,000 remaining difference?
    The truth is that Their administration agreement with the SPV doesn’t permit them to exercise any of the discretionary measures as laid out by MCOB. They don’t want to negotiate because holding on to the mortgages for the life term of the agreements isn’t in the game plan. What is the game plan is that, by hook or by crook, ALL THE MORTGAGES & LOANS would be redeemed within 5-7 years, because that’s what they promised the investors who have been screaming for their cash back ever since the collapse of Lehman Bros.

  • Brian Grace 20th December 2010 at 10:07 pm

    I would ask the Mortgage Strategy to check the use of the word “Group” in regard to Swift Advances PLC.
    Swift Advances PLC lost the right to kegally use the word Group when Swift Advances Group Ltd became Kestrel Acquisitions an investment holding company.
    The Swift Group has only recently been added to the Consumer Credit Licence of Swift Advances plc as a ” Trading Style” …There is no use legal entity in existence as The Swift Group associated with Arcadia House the Home of Swift Advances plc…………”Swift Advances” is also merely a trading tyle of Swift Advances plc……….which until 03/11/09 belonged to another company in the name of Swift Finance UK Ltd a company without any link to Swift Advances plc………….The Swift Group is a company Registered with companies House as The Swift Group Ltd a Caravan manufacturing company in Hull Yorkshire,
    I have much more information about Swift Advances should the Mortgage strategy wish to have first hand knowledge of as I have been in dispute with SwiftAdvances plc for over 3 years regarding their wrongdoings of which are far greater than anyone would imagine.

  • sugarsian 20th December 2010 at 6:30 pm

    I don’t think The Swift Group is the correct name for this group of companies which are part of Alchemy Partners’ portfolio. The holidng company is Kestrel and it is Swift Advances plc and Swift 1st and Swift Securities which are being investigated.