Loan Figures do not match.

[jumper999]

I have joined this site after reading various threads from people and hope that I may receive some help please.

[leclerc]

Re: Loan Figures do not match.

Glad to see you posted plenty of info, lol! Seriously though, welcome to Legal Beagles. I do hope you have not edited out the details because of a lack of response because not giving it 24 hours would not allow those who work during the day the time to help you in the evening......

[jumper999]

Re: Loan Figures do not match.

Thank you leclerc I did edit my question and I accidentally deleted most of it, still trying to get the hang of using this thread.

My question was that the figures on my unregulated loan agreement do not match the figures which I agreed to pay when I signed the Declaration of Income and Affordability forms. They are out by £17.

I do not believe this is correct and if I am correct then my lender would have to change my agreement therefore making my unregulated loan in to a regulated loan.

You see, my broker and lender stated on the forms that I had to agree to sign that repayments would be x amount per month, but on my agreement they are more.....where does that leave me and what should I do?

Also there are no wealth warnings on my agreement to say "YOUR HOME WILL BE REPOSSESSED IF YOU DO NOT KEEP UP PAYMENTS".

I believe that this is a legal requirement? I am not trying to wriggle out of paying neither am I in any bother, its just that I am a bit peeed off with how my lender has been racking up the interest rates even though I am on a variable rate loan.

So does anyone think that my figures are incorrect and that there should be a wealth warning on my agreement?

Any help or advice would be cool.

[TUTTSI]

Re: Loan Figures do not match.

Welcome to Legal Beagles...

Are you able to post up your agreement but obviously leaving out your personal details.

Tuttsi

[jumper999]

Re: Loan Figures do not match.

ahhhhhhhhh that would have been the best thing to do if my scanner and printer was working, sorry but cannot but can provide any other info

[TUTTSI]

Re: Loan Figures do not match.

If you can take the document to an internet cafe or stationers you may be able to have it emailed to admin@legalbeagles.info for the attention of Amethyst who will be able to post this up for you without your personal details and tell her your thread and user name.
Tutts

[middenmess]

Re: Loan Figures do not match.

Or use camera on mobile phone using macro setting and then upload it here

[Turboman]

Re: Loan Figures do not match.

Jumper

Is the stuff you sent me to do with this thread?

[jumper999]

Re: Loan Figures do not match.

Yes TB the stuff is to do with this thead

[Turboman]

Re: Loan Figures do not match.

Yes TB the stuff is to do with this thead

Ok Bill sent me some calcs he's done---look later on-
or get Bill to take over as I am busy at hospital every day

[Bill-K]

Re: Loan Figures do not match.

We've been taking a look at this, Jumper. Turbo and I are maths geeks, but not really well-versed in the CCA and enforceability, so we've had to ask the opinion of admin on that. This is the opinion we got:-

It is an unregulated agreement, as it is a secured loan of £35,000, and therefore not covered by the CCA. However, the lender still has to abide by FSA rules and other regulations governing fairness. It may be possible to look at such things as mirepresentation, mis-selling, unfair contract terms, etc., but the interest rate seems reasonable. This thread may be useful - click on the link :-

Need a guide for unregulated/secured credit and cca application - Legal Beagles Consumer Forum

Read more at: Jumper999 Discussions - Legal Beagles Consumer Forum
Need a guide for unregulated/secured credit and cca application - Legal Beagles Consumer Forum

Regarding the interest rates and repayments, this is my summary, which I hope answers your questions:-

For the first 3 months of the loan period, you make no repayments, and the lender charges you no interest.
For the next 12 months, the interest rate is 7.8%, and the monthly repayment is £285.79.
Unless the interest rate changes, the remaining 288 pmts then continue at £335.76 p/m, with an interest rate of 9.8%.

The Total Amount Payable (TAP) under the agreement is therefore:-
12 x £285.79 = £3429.48,
plus 288 x £335.76 = £96698.88,
which comes to a TAP of £ 100,128.36.

[jumper999]

Re: Loan Figures do not match.

Thank you Bill & others for your input. I kinda worked that much out for myself by calculating the months and payments.

My Lender has increased their interest rate without any notice to me yet my payments have remained the same at £335.76.

I understand that this is an unregulated agreement, even though it does not state that it is. My Lender states that they are not regulated by the FSA.

Are you sure and can you provide any info showing that they have to abide by the FSA rules please?

Blemain are introducers of Cheshire Mortgage Company who are regulated by the FSA...........so would that mean the Blemain too would be regulated by the FSA?

[pompeyfaith]

Re: Loan Figures do not match.

Here you go

http://www.fsa.gov.uk/register/firmB....do?sid=118481

http://www.fsa.gov.uk/register/firmP....do?sid=118481

This is the Cheshire Mortgage Co details

http://www.fsa.gov.uk/register/firmB....do?sid=114839

[Bill-K]

Re: Loan Figures do not match.

I don't think an unregulated agreement has to state it is unregulated. But I believe that any loan over £25,000 is automatically exempt from CCA regulation, under the terms of the CCA itself.

I can't comment on the FSA aspects, I'm afraid - it's just not my area, but Blemain are described in the agreement as 'The Lender' - so I would have thought they would be subject to the FSA - even if they would like you to think otherwise. But that's just my guess.

Regarding the interest rate being changed, clause J states that the lender may vary the interest rate AND the number of payments, so I reckon that is why your payments haven't changed. They have probably taken the option to increase the number of repayments instead.

I think at the very least, they should have to explain this to you, and tell you how many extra repayments you now have to make.

Again, it's not my area, but it may be worth asking Blemain to confirm whether or not they consider they have a right under the agreement to increase the number of payments without informing you of this. If they then confirm this, it may perhaps be worth considering it as an unfair term.

EDIT: Just noticed PF has answered the FSA regulation question, it seems. Well done and thanks, PF.

[jumper999]

Re: Loan Figures do not match.

Thank you pomp & Bill. Blemain have advised that they are regulated by the FLA Lending Code. Having read the code the paragraph relating to 2F Variable Rate Loans which mine is reads;


2F.2 Changes to the interest rate may affect your monthly payments. We will tell you about any changes to the interest rate by letter, e-mail or other personal notices
at least seven days before they take effect. [I WAS NEVER INFORMED OF INCREASED INTEREST RATES BY ANY OF THESE MEANS]

Where relevant, we will also put obvious notices in our branches and may place notices in national newspapers.

If the change is to your advantage, we may change your interest rate sooner.

To help you compare rates more easily, our notices will clearly show the old and new interest rates that apply to your agreement. [TOTAL CRAP]

This section (2F.2) only applies if the rate we charge is changing. [RATE WAS CHANGING AND DID AS IT WENT UP EACH MONTH] It will not always be possible to tell you about changes before they take effect if your agreement is linked to a published rate (for example, a bank base rate or the finance house base rate) and it is only that published rate that is changing. In that situation we will tell you as soon as possible by letter, e-mail, other personal notices, or by showing the impact on your monthly account statement.

According to the OFT Guidelines agreements should state how interest rates are linked and my agreement does not show which interest rate it follows, be it Bank of England, Libor, Tracker or publishing rate. Even though I have asked this question to Blemain several times and for a few months they refuse to advise me on this and have literally told me to stop bugging them with this question.