The BBC has discovered disturbing information about suspected forgeries of signatures when it comes to court documents for repossession cases. When this happened in America, there were billion dollar fines, and millions more were paid out in compensation. Will it be the same in the UK?
These specific allegations relate to loans from Mortgage Express, Lloyds Banking Group, Bradford and Bingley, and Northern Rock and their dealings with UK Asset Resolution. Although all of these named companies deny the claims strongly.
The signatures in question have allegedly been found on witness statements and so-called ‘statements of truth’ which are submitted to the courts during the repossession process. The signatures are meant to be from legal representatives and bank officials.
The problem is so widespread that a specialist handwriting expert has been called in as part of the investigation, and an online action group – the Bank Signature Forgery Campaign – has been set up in the wake of the issue coming to light. Adam Brand, the handwriting expert, has looked at dozens of examples and feels that many of them – even most of them – have been forged and that many different people have been signing the same name.
If proven, this would be seen as being in contempt of court and jail is one response to the crime.
One way to combat this problem would be to put additional checks and balances in place – perhaps witnesses, for example. When it comes to important documents such as stocks and shares certificates being transferred from one owner to another from the USA, a medallion guarantee is used – this prevents forgery and proves to the courts that the document is above board, and can be legally transferred. A system like this may need to be set up for repossessed properties in the UK is the widespread forgery is proven.
Even if the forgery is not proven, the fact that it was suspected might be enough to trigger additional security measures in the future.