[staringclown]

Banks face home loan suit

I had to check it wasn't April 1. I'm a mortgagee and I'm not responsible for my own actions.

Quote

AUSTRALIA'S banks could be facing a massive new class action over allegations that their mortgage lending practices have put thousands of families in severe financial stress or at risk of losing their homes.

Organisers estimate that up to 300,000 mortgage holders would be eligible to participate in the action, which is expected to focus on first home buyers and lower-income households who received loans since the onset of the global financial crisis.

The proposed lawsuit has drawn qualified support from law firm Maurice Blackburn, which is already engaged in the country's largest class action over alleged fee gouging by the big banks.

The potentially landmark case is being orchestrated by retired British insurance broker Roger Brown, who will seek claimants through the website takingonbanks.com in early April.

''The people we are talking about are experiencing severe financial hardship through no fault of their own because they shouldn't have been given a home loan in the first place or they have been lent way too much money,'' Mr Brown told The Sunday Age. ''I think the banks have a case to answer for the irresponsible way they have been lending.''


Read more: http://www.theage.co...l#ixzz1jTLGyH6G

No way will this succeed.

[zaph]

staringclown, on 14 January 2012 - 09:57 PM, said:

Banks face home loan suit

I had to check it wasn't April 1. I'm a mortgagee and I'm not responsible for my own actions.



No way will this succeed.

how do you quantify loss if you haven't had the house foreclosed?

[staringclown]

zaph, on 14 January 2012 - 10:20 PM, said:

how do you quantify loss if you haven't had the house foreclosed?

I'm too stressed to answer that (sensible) question.

I do believe that in the alternate reality the organiser lives in he would have an answer though.

[savagegoose]

oo hoo , casino sdomld me all those $100 chips , they should have known i was a moron. .... no wait thats why they sold them to me.

This post has been edited by savagegoose: 14 January 2012 - 10:56 PM

[zaph]

staringclown, on 14 January 2012 - 10:31 PM, said:

I'm too stressed to answer that (sensible) question.

I do believe that in the alternate reality the organiser lives in he would have an answer though.

i knew i should have borrowed the absolute max the bank would lend me. lol.

they won't get funded unless there is a very very good chance of winning, so we'll see. if they're successful then banks will be forced to be more conservative, which could pop the bubble. it would be held up in court for years though.

[Rocket]

This will never be allowed to progress as a class action law suit. Every individual borrowers circumstances are different, and would have to be tested separately.

[zaph]

Rocket, on 15 January 2012 - 01:28 AM, said:

This will never be allowed to progress as a class action law suit. Every individual borrowers circumstances are different, and would have to be tested separately.

not per se.

the law firm gets the 300k people to sign up and picks the strongest case to litigate. the results set a benchmark and 'rules' for further action. the defendant (bank) then recognises who has a claim and who doesn't. the firm representing the plaintiffs then negotiates with the bank and gets settlements for the strongest claims and bad luck for the rest. then there could be subsequent legal action to sort out the grey claims.

[Turkey]

Funny that this should happen once home prices dropped.

I doubt all those people would be whinging if their house prices were tripling every 10 seconds or whatever they are usually supposed to do.

[staringclown]

savagegoose, on 14 January 2012 - 10:55 PM, said:

oo hoo , casino sdomld me all those $100 chips , they should have known i was a moron. .... no wait thats why they sold them to me.

Quote

i knew i should have borrowed the absolute max the bank would lend me. lol.


they won't get funded unless there is a very very good chance of winning, so we'll see. if they're successful then banks will be forced to be more conservative, which could pop the bubble. it would be held up in court for years though.

My hat's back on the menu if it doesn't get thrown out at the earliest opportunity.