Sample Frauds

Extracts below are from: The Times – James Hurley

“If you have taken a fixed-rate loan, you should not be involved in a derivative,” 

Ulster Bank secretly lodged “hidden credit lines” against certain fixed-rate loan borrowers to account for these costs.” 

In effect, this amounts to a huge additional potential liability against customers’ names

that they were never told about, Tyler and Middleton argue”

These credit lines had real consequences for: credit ratings, loan-to-value positions on secured assets, the ability to refinance and ultimately an increased risk of insolvency and damage to livelihoods”.

Note: This is one example only:  

A “Fixed Rate” Loan

A Hidden Credit Line at loan closing 30,000

Credit line increases to 300,000 as interest rates go the “wrong” way (for the lender)

You owe your original loan plus 300,000 on the Hidden Credit Line