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Article: West Bromwich `sold defective mortgages'
- Article from:
- The Independent (London, England)
- Article date:
- February 10, 1998
- Author:
CopyrightCopyright 1998 The Independent - London. Provided by ProQuest LLC. (Hide copyright information)
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West Bromwich Building Society provided dangerous, risky and
defective mortgages to unwary elderly borrowers - even though it
was clear they could be left with mounting debts and little chance
of repaying them, a court heard yesterday. Andrew Verity reports.
Months after being warned by regulators that the mortgages were
dangerous, West Bromwich went on selling them to hundreds of
vulnerable customers, the High Court heard.
The Investors Compensation Scheme is suing West Bromwich for at
least pounds 35m over the sale of Home Income Plans (HIPs) to 750
borrowers. The plans offered the prospect of a lifetime income and
lump sum by releasing the equity in the house.
Two groups of investors, ...