Michelle Matheson - Victim of RHG Mortgage Corporation

Bank Story Overview: 

RAMS and RHG Mortgage Corporation (RHG) Mortgage fraud, bullying

Michelle Matheson (MM) NSW – Wage earner

Case Summary

History

2007 MM was told by an agent of the bank MM could afford a home based on their budget audit despite MM working part-time and studying.

• Six weeks later MM contacted RAMS (RHG) saying she was doubtful she could manage this deal.
• RHG ignored the notice and sent a letter claiming that all due diligence had been actioned.
• For five years MM worked three jobs around the clock to try to keep payments up.
• 2012, MM requested her file held by RHG. The original loan application of 4 pages had another 11 pages added that she had never sighted.

The fraudulent details

• RHG inflated MM's income by $55k, her savings by over $100k and obtained an ABN number in her name
• The loan type was designed for small businesses and self-employed, not a first home buyer.
• RHG manipulated 31 interest rate rises in 5 years and repayments of up to $3,800 per month on a low single income with dependents.
• The lender continued to move the goal posts every week so she would call them and ask how much they needed this week just to keep the roof over their heads.

How MM has slowly declined

• MM sold personal assets, all superannuation used, increased credit card debt to make each repayment.
• MM's mother has sold assets, emptied her superannuation and sold her home to enable MM to keep her house.

Unjust Ombudsman determination

• Financial Ombudsman result - dispute found in her favour, maladministration was proven, liability – 50% onus on the bank for their wrongdoing, 50% onus on MM for failing to protect herself from their wrongdoing.
• MM refuses Determination as it forces her into homelessness. She could not have protected herself from this type of deception and fraud.

Deceptions and Bullying

• Emails show FOS and Kxxx xxxxx Lawyers worked in collusion to get extra $20K to hold off a repossession
• After MM sent a statement of claim to RHG, they offer a gag order, a default notice demanding she remedy the default within 28 days, and a threat to sue her for defamation. MM refused their 'offer'
• Credit and Investment Ombudsman found no issue with the lender's legal counsel and the lender's conduct during the 'good faith' negotiations.

Evidence showing RHG misconduct

• The lender has engaged in multiple counts of Lender's Mortgage Insurance Fraud using MM's personal particulars
• Internal emails showing the advisor and lending managers communication to construct the loans after obtaining MM's signature.
• Multiple internal (bank) diary notes obtained at different times that are all different and have been altered.
• The lender, RHG Mortgage Corporation's diary notes show clearly that they were aware of the fraud from the loan inception and throughout the loan time.

Inability to get Justice

• MM has not had much help from FOS, CIO, ASIC, APRA, Federal Members, Senate Inquiries, NSW Fraud Squad, local Detective, social justice law firms, or pro bono mediators.

Outcome

• MM is now restricted to night shift work only to enable her to continue to work on saving her home and preventing her family from being homeless.
• Longterm affects include mental illness, loss of career, loss of family well-being, significant and serious physical illness. 11 years have been stolen from MM and her family.

Update 20th Sept 2018

See Part 2 of Michelle's story for more information.