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Swedish "Bank customers are treated like cattle," an official accused

Thursday, 11 April 2013
Swedish mortgage customer have been described as having some of the worse experiences such that their situation fit the way farmer sell cattle.

Mortgage holders or would be buyers in Sweden that are deemed not creditworthy by the major banks have a system which they'll sell these customers details to a financial institutions that charge twice as high interest rates as the banks, a exposure claim.

Two Swedish banks SEB and the state owned mortgage dealer SBAB have been exposed as duping mortgage holders in that, mortgage holders who happen to have a weak credit rating see their details sold to a high cost lenders known as Bluestep.

Bluestep despite charging something like 6.35 percent at least in interest rate at loans - far more that what the main banks charge, it also pays commission to the major banks for the clients they send to it.

Today SSAB and SEB were rushing all over the place seeking to defend themselves and disassociate themselves from Bluestep.

State owned SBAB has collaborated with Bluestep since 2005, while SEB began a collaboration a year ago. This despite earlier declining Blue Steps offer for collaboration.

After the both SEB and SBAB were exposed and their type of operation blown open to the news media, they are now scrambling to terminated their operations with Blue Step.

We have taken a decision to terminate the agreement. It does not play with our values as a company. If the credit rating we do show that the customer should not take a loan, it is something we'll stand for," says SBAB's press officer Bernd Schmitz.

As for SEB they say that "with hindsight, I can say that it was a miscalculation," writes Mats Torstendahl head of SEB's retail operations, in a statement.
"The agreement is not in line with the bank's way of running a responsible lending, operations something that became clear in the review," according Torstendahl.

Other large banks, such as Handelsbanken and Länsförsäkringar, had declined similar partnerships with such lending institutions.
"This is terribly immoral, we would never say yes to such plan," said one person at a bank, with offer of non-cooperation.

Despite all that neither SEB nor SBAB want to disclose how much money they have earned on each such customer.

"We have a commission, but I do not want to go into the commission amount," said SBAB private Marketing Manager Hakan Höijer.

This comes after the EU in a report yesterday condemned Sweden for running a very unfavourable housing policy.
By Team

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