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Banks behind France's housing scandal
French banks set up subsidiaries which offered property loans to middle class families, on one condition: the homes could never be sold, had to be compulsorily rented and only banks, not the landlords, could select tenants.
Then they received warning letters from banks. Home owners realized the contract sent by banks had been illegally skewed whereby, they were forced to repay 6 times their initial loan and all their belongings were auctioned off. Their debts rose to 200 percent and home owners decided to file a case.
The case is termed as France's own sub-prime scandal. A thousand homeowners have lost over a billion euros.
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