Media statement from Sanderson Weir

We have been informed by media that a notice of default under a mortgage, prepared by our firm on behalf of an Australian lender was delivered to a Tauranga woman by a contracted server while the elderly woman was sick in bed.

We also understand from the media that while this notice related to a default on a loan secured against the woman’s home, she had purchased a Blue Chip property in another transaction.

It is regrettable that we had only part of this information at Sanderson Weir when the default notice was delivered by our contracted party. We did not have any information about the woman in relation to Blue Chip. Our only information related to a loan secured against the property in which she resided. We did not know the woman’s age, personal health or any of the wider issues. This is information that solicitors preparing default notices for lenders would not normally expect to be told.

Had we known about her age and personal health circumstances, we would have arranged for the notice to be served in a more appropriate way and we deeply regret the distress it may have caused. We apologise to the woman and her family that such a notice should have been served under these personal circumstances.

In future we will urge our service contractors to use their discretion if they become aware of such circumstances.

Notwithstanding that, our role is as a legal intermediary to enforce mortgages that are unpaid. We believe we are just one of many law firms in New Zealand that will have the task of dealing with loans in default that are indirectly related to other investments in Blue Chip property over the next few months.

NO FREEZE ON RECOVEY ACTION

Feb 2008 Blue Chip Companies went into voluntary liquidation.

7 March Tauranga EUFA meeting

Suzanne Edmonds met and spoke with Mrs Harrison and her Daughter Margaret Rasmussen who briefed me on their cases – They were both in good health Mrs Harrison did say they weren’t sleeping.

15 March - Mrs Harrison received a letter from Challenger Mortgages threatening action if money was not paid ( this was Mrs Harrisons first knowledge she had a loan with Challenger)

(Claims have since been made to dismiss and minimised the letters being sent as being “computer generated ”

16 March Suzanne Edmonds was on tour with the EUFA Recovery Road Show when she received a very distressed call from Mrs Rasmussen) From Nelson Suzanne Edmonds wrote to Challenger Mortgages about (attached) Copied to Liquidator Jeff Meltzer and Prime Minister (see below) Prime Minsters letter also attached

16 March Gray Eatwell (EUFA Finance Spokesman wrote to Prime minster enclosing challenger corresponded (attached)

Press release sent and several media reports

19 March Jeff Stringer made a phone call to Suzanne Edmonds in the afternoon from Minister of Commerce office requesting a “brainstorming “meeting with Suzanne Edmonds re Finance Crisis. ( all finance company collapses)

27 March Gray Eatwell and Suzanne Edmonds met with Minister of Commerce, Ms Lianne Dalziel and her support staffer , Ellie McIntyre (held at Jeff Meltzer’s Rooms)

29 March New Zealand Herald: Public exposure of the case. Large ‘feature’ article on Mrs. Harrisons position.

21 ?April Suzanne Edmonds phoned Challenger Mortgages following further threatening letters to Rasmussen and Harrison

(LAST WEEK)

15 May Mrs Harrisons daughter, Margaret Rasmussen, was visited by the same server as Mrs Harrison had this week.( Mrs Rasmussen is also a victim to BlueChip) She was served with a threatening letter and requested to immediately call Challenger. (0061386161435) Mr James Haog.

Suzanne Edmonds emailed Jeff Stringer in Ministers offices of Commerce’s office as the Minster and the liquidator had requested to be told of PLA notices being served. The office was emailed immediately. An email written by Suzanne Edmonds to Jeff Stringer following a phone call read“. Stating to me that the Minister does want to be informed if a PLA notice is issues is in our experience far too late for action to be taken. ......[The People are becoming ill and can you imagine the suffering felt when in the evening in Tauranga, in the dark, a stranger knocks on the door of an elder lady informing her that her house is to be sold if she does not pay the arrears. These are people who would not even know the process of recovery as they have paid all their bills on the 20th of the month.”

(THIS WEEK)

19 May Monday. Mrs Harrison served with PLA notice at her bedside. (Just before 6pm)

7.09 Mrs Rasmussen emailed EUFA. And faxed documents to Suzanne Edmonds

EUFA Press release sent

20 May Tuesday10.30. Suzanne Edmonds went to Sanderson and Weirs (law firm) reception with TV 3. Spoke firmly but respect to Solicitor, Nicola Robertson.

Media reports. Mrs Harrison. Minister of Commerce. ( Law firm had no comment but issued a Media statement following) ( attached)

Minister calls on Lenders to with hold recovery action.

Sharp Tudhope (Tauranga Law Firm) begin action for Mrs Harrison

21 May 2008 Member of the Public unknown to all involved offers to provide funds to keep Mrs Harrison in her home.

COMMENTS

Sanderson and Weir, law Firm, who issued the PLA notice stated “We certainly did not appreciate our reception being invaded yesterday .........”

Challenger Mortgages have not ceased recovery action.

Challenger Mortgages, the liquidator, the Minister of Commerce were all aware of Mrs Harrison’s situation. This same scenario will also happen to all the other investors who are unable to pay the interest payments to any lender unless a freeze is put on the recovery Action and Interest payments while the investigations are taking place.

The law firm have not apologise directly to Mrs. Harrison or her family but have through a media statement THEY HAVE NOT WITHDRAWN THE PLA NOTICE OR RECOVERY ACTION.

No response from Challenger CEO or Representative in writing or by phone in relation to the Correspondence of 16 March 2008. The law firm have blamed the Server and state they are acting on Clients instructs. Suzanne Edmonds wrote to the law Firm this morning stating the following.”

“ It is common practice that night service happens – it is a psychological statement been practiced for years and your law firm would have known this would have been what would happen in this case.

The Minister’s public call for “Patience” from lenders has not changed the legal position and is obviously not going to or fro Mrs Harrison. The Law Firm would have withdrawn the action by now if the Ministers public stand was going to be adhered to. Today is Friday they were notified on Tuesday)

It is totally wrong that the lenders are afforded an automatic right to use an Act of Parliament (the Property law Act (PLA) when the fundamental rights of citizens, to be protected from abuse of power is ignored. All Acts of the New Zealand Parliament are bound to comply with basis rights of all citizens to be protected by law, under the New Zealand Bill of rights act.

 

THE LENDERS (INVESTORS) MUST BE CAUTIONED THAT THIS IS STILL THE LEGAL POSITION

 

Thank you to Mrs Harrison, her daughter, Margaret and the rest of her family for being generous enough to bring out the real issues out and expose the truth which are effecting almost all Bluechip investors. We owe them!