FCCC to launch inquiry into banks over alleged price manipulation in foreclosures

Following serious allegations of price manipulation by banks from people who have lost their property due to bank foreclosure, the FCCC will be launching an inquiry into the financial services sector.

While confirming this on fijivillage Straight Talk with Vijay Narayan, FCCC CEO Joel Abraham says they have received about 5 complaints about this.

While highlighting one of the complaints, Abraham says a man took out a loan of $100,000 from a commercial bank for a piece of land that the bank has valued at $150,000 but the man has lost his job and was unable to pay the loan.

The CEO says the bank came into foreclose and did another valuation where the value dropped to $85,000 and they were trying to sell it to somebody.

He asks how can the valuation drop when we all know land is an appreciating asset.

Abraham says given that they strongly condemn any of this predatory practice, they will open up a platform and will ask all Fijians who have lost their property due to foreclosure in the last 5 years and feel there have been some issues, to come to the FCCC who will look into it.

The CEO says this will be a report on its own and they are hoping to then support the Office of the Financial Ombudsman by providing them this market information to say this is what they think the state of the market has been when it is come to foreclosure.