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MBNA credit card will not refund £27,000 landbanking victim
By Andrew Penman on July 20, 2011 11:00 PM in Investments ( http://blogs.mirror.co.uk/investigat...estigations%29 )
Victims of landbanking scams have lost £200million to charlatans who promise rich returns if you buy a plot of a field which then gets planning permission, according to latest figures.
Michael-Morris-24.11.10.jpg
One victim is widowed Gillian Malouf, of Stockport, Cheshire. She was persuaded to invest £15,000 with a firm called Land International Ltd, of Cheltenham, Glos, run by Michael Morris (above) and Stephen Meissner. It has since been shut down in the public interest.
She also sent almost £12,000 to Hayden James Land Acquisitions, which has also been shut down. Despite this being a perfect example of one of the most common current scams, her credit card provider MBNA Europe Bank refused to refund her money, and the Financial Ombudsman Service has upheld that decision.
"Mrs Malouf has clearly suffered a loss as a result of entering into these sales - the plots are worth a fraction of what she paid for them with little prospect of planning permission ever being granted," the Ombudsman ruled.
Her claim failed because, although the deals were disastrous, she could not prove that she'd been misled.
Yet common sense suggests that no one would invest such large sums of money in tiny plots of fields unless they'd been led astray.
An MBNA spokesperson said: "These types of contracts are by their nature speculative and we do sympathise with Ms Malouf. Section 75 of the Consumer Credit Act offers some of the best consumer protection in the world, however, unfortunately it cannot cover every scenario.
"We treat each case on its individual merits, as we did in this case, but unfortunately Mrs Malouf did not have full contracts for either plot or any written guarantees on the profitability of the land or the granting of planning permission. Our position has been confirmed by the Financial Ombudsman Service."
"My reaction is total disbelief that the law of the land, set up to protect the consumer, can be misinterpreted so blatantly," said Gillian.
"The Consumer Credit Act 1974 is supposed to be a 'black and white' national law, section 75 especially is supposed to provide consumers with protection in cases of misrepresentation and or breach of contract, where the credit card company is jointly liable with the supplier. I know I had both in these first two instances above.
"My financial position now is that apart from my widows pension of £77.05 a month and the bereavement allowance of £58.00 a week I have no income at all."
By Andrew Penman on July 20, 2011 11:00 PM in Investments ( http://blogs.mirror.co.uk/investigat...estigations%29 )
Victims of landbanking scams have lost £200million to charlatans who promise rich returns if you buy a plot of a field which then gets planning permission, according to latest figures.
Michael-Morris-24.11.10.jpg
One victim is widowed Gillian Malouf, of Stockport, Cheshire. She was persuaded to invest £15,000 with a firm called Land International Ltd, of Cheltenham, Glos, run by Michael Morris (above) and Stephen Meissner. It has since been shut down in the public interest.
She also sent almost £12,000 to Hayden James Land Acquisitions, which has also been shut down. Despite this being a perfect example of one of the most common current scams, her credit card provider MBNA Europe Bank refused to refund her money, and the Financial Ombudsman Service has upheld that decision.
"Mrs Malouf has clearly suffered a loss as a result of entering into these sales - the plots are worth a fraction of what she paid for them with little prospect of planning permission ever being granted," the Ombudsman ruled.
Her claim failed because, although the deals were disastrous, she could not prove that she'd been misled.
Yet common sense suggests that no one would invest such large sums of money in tiny plots of fields unless they'd been led astray.
An MBNA spokesperson said: "These types of contracts are by their nature speculative and we do sympathise with Ms Malouf. Section 75 of the Consumer Credit Act offers some of the best consumer protection in the world, however, unfortunately it cannot cover every scenario.
"We treat each case on its individual merits, as we did in this case, but unfortunately Mrs Malouf did not have full contracts for either plot or any written guarantees on the profitability of the land or the granting of planning permission. Our position has been confirmed by the Financial Ombudsman Service."
"My reaction is total disbelief that the law of the land, set up to protect the consumer, can be misinterpreted so blatantly," said Gillian.
"The Consumer Credit Act 1974 is supposed to be a 'black and white' national law, section 75 especially is supposed to provide consumers with protection in cases of misrepresentation and or breach of contract, where the credit card company is jointly liable with the supplier. I know I had both in these first two instances above.
"My financial position now is that apart from my widows pension of £77.05 a month and the bereavement allowance of £58.00 a week I have no income at all."
