English
FrançaisI have just joined the forum, probably like most people, maybe 5 or 6 years too late! I joined the forum because more and more problems have beset the development in which I am an owner. We have been through the missed rents, the dereliction of duties concerning the upkeep of the development, the receivership of the initial promoter/operator, the selection of a new operator and are now likely looking at more missed rents, more dereliction of duties concerning upkeep etc. etc. etc.
I have read in great detail the horror stories on this site and others from honest decent people about how the have suffered as a result of these so called investments. The terms "scam" and "scandal" are frequently used to describe the set up of these schemes and the situations people are left in. The questions though are all the same and the answers pretty much amount to " lawyer up" and "you're on your own Jack". Here's what I do not understand?
1. If terms like "guaranteed rental income" are used in marketing material without qualification, and this turns out not to be the case, then surely this amounts to a fraudulent description of the goods or services being offered.
2. How are the banks washing their hands of any responsibility in relation to lending into these obviously risky and downright treacherous schemes without being challenged on their own lending practices?
3. In the conveyancing of a property the lawyers whom the purchaser pays have a role to play in advising of any likely risks or hitches. Surely they have a responsibility to advise purchasers on the reality of such guarantees?
4. Why is the French property industry and the French government happy to preside over the sale of such investment vehicles that are so abundantly damaging to France's reputation as a safe place to invest?
5. If this were a financial investment product, it would be up in front of a financial ombudsman for miss-selling and all involved parties would be instructed to refund the purchasers.
Has there been any legal challenges along the lines above, and if so, can anyone report on the outcome?
I would appreciate some feedback on the points raised.
Thanks, Enda
Hi Enda,
I'm afraid I don't have any answers for you. I am writing to agree with your questions which echo mine. It seems everyone was quite happy to allow these schemes to proceed
and for investors to be completely hung out to dry, which is still the case. I sought independent legal advice before investing and asked my solicitor to look over the documents.
His response was that as the scheme had 98 apartments I shouldn't worry about the legalities - mind you, that was considering the conditions of the Bail Commercial. I wish
of those professionals - one a financial consultant from a bank which had no financial interest in the deal - had warned me of the pitfalls of the whole leaseback arena. The Irish
financial agency who promoted the properties quickly dropped the whole thing once the bubble burst and moved on to pastures new, leaving investors such as myself high and dry.
While I take responsibility for not being business savvy enough myself, I, like you, think it's appalling that banks etc., colluded in such a dreadful scheme and that the justice
department in France and the French Government have absolutely no interest whatsover in those of us who are lumbered with these financial albatrosses. I don't know whether
there are any class actions in the works amongst French leaseback holders, I would be very interested if anyone has any idea of same. Similarly, does anyone know how to
negotiate out of such a situation with a French bank. I want to approach my bank vis a vis selling my property at it's current value, and convince them that to accept that together
with what I've already paid will see them break even on their investment. This would let me out of an untenable situation and they would not lose money.
Any advice re same would be appreciated.
Thanks again for your post,
Gillian
the money I have already paid them will
aalready paid them