Blue Chip Lending practices scrutinized

The Blue Chip Liquidator has met with particular lenders of investment funds for Blue Chip Investments who claim that no recovery actions against Investors homes etc has been taken yet.

Although Exposing Unacceptable Financial
Activities (EUFA) welcomes any form of restraint
from lenders, Blue Chip Investors should be aware
that from information received from overseas
examples of such lending, that serious issues
relating to some Blue Chip investment loans have
been exposed.

USA authorities have identified that many loans
involved in the sub-prime lending crash have
constituted predatory lending, a practice that has
been condemned as unacceptable.

In accordance with the information received about
the USA situation, much of the documentation
produced for the funding of Blue Chip Investment
loans is now under careful scrutiny.

EUFA finance spokesman Gray Eatwell said from
Southland today " Documents provided to Blue Chip
investors by some lenders show serious
inaccuracies that indicate unconscionable lending
practices" " As a consequence of the deception and
falsifications involved it is unlikely that such
documentation would withstand the scrutiny of the
Crimes Act and other such law"

A group of Blue Chip investors who are
dissatisfied with the manner in which the
documents were executed has been formed, therefore
any other investors who is unhappy with the way
the documentation of their loan was presented to
them should make contact with EUFA immediately.

Mr. Eatwell added " when we look at the Crimes Act
section 240 Obtaining by deception or causing loss
by deception and 242 False statement by promoter,
etc for example, some very serious questions about
the Blue Chip loans emerge. Such questions must be
adjudicated".