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Lancashire Mortgage Corporation ( Blemain group) set me up to fail. With a unregulated loan agreement. Is there a common theme amongst sub-prime lenders. All they seem to be interested in is repossessing your home whilst making as much money out of you, whilst of causing as much misery along the way.
Forums like this have years of repeating history of blatant abuse of the lending system.
I have started this thread to explore the abuse of unregulated loans. I would really like to hear from anyone who believes they took out a loan they know or believe should have been regulated.
Its easy to hang your head in shame thinking well i signed the agreement, I have found that when trying to get advice there are two different outlooks on this. Some people, particually those associated with lending tend to say, well you signed it! But the smarter ones ask a few more questions to get a bigger picture, then look at the whole story, its important to realise thousand's and thousand's of pounds are spent on training lenders to use mind games. It sounds odd but anyone who has been involved in sales will tell you, there are set plans to take you from A to B or to Z if they want to.
When i took my loan out a lot of confusion was deliberatley caused in brief (very brief)
Titles from the film THE STING
Starring Marc Goldberg not Paul Newman
THE PLAYERS
I applied through a broker who arranged LMC for £45k loan to finish our family home (we had built 3 x houses two were complete) our house was last because we had to wait for plans to be passed to extend it.
note; Brokers have direct access to LMC director Mark Goldberg they explain to him what the customer wants, their circumstances and he gets involved at a very early stage
THE SET UP
I was told it would be second charge, and if it was deemed a business loan, as it would speed things up, (at this stage i was'nt bothered what they called it ) there is no cooling off period, so the loan could be released in a couple of days.
THE HOOK
A loan was sent in principle £50k (why sign in principle?) then agreements and more in principle's £50k then £73k then £59k (its called price conditioning) i ageed to more than i originally wanted now at £59,000 including 3x months payments charges fees commissions etc the loan was ready to sign. all the messing up of paper work was a time wasting exercise because they know when you apply you need the money asap and if they drag it out the more desperate you become
THE TALE
Two LMC directors came to visit me(at a days notice) for a face to face meeting (fact finding so they are fully aware of my situation, and just how desperate i am) i had 3 x houses all on one title deed, so i had to offer all three as security, they asked loads of questions exposing how desperate i was etc.etc. I was told that LMC had stopped lending on new builds (liers they lend on anything of value) but they would make an exeption. I told them my proffession (it was'nt building houses niether have i ever been in the business of building houses this was a one off project to replace our home on 45% of the plot and two others) I was told to sign at the solicitors and the money would be released, i was ok to organise tradesmwen, i signed and it was sent to LMC
THE WIRE
A few days past and i phoned to ask why the funds had not been released. I was informed by Marc Goldberg that they had changed their mind ( gone back on his word and agreement) and now wanted first charge paying off my high street mortgage. with repayments over 6 x more than i had signed on a declaration of income stating what i could afford, our income could not pay over £6475 a month i was in a state of panic, frantic. but i was desperate and they knew it trades men were booked we was having to use a stand pipe for water etc. 6 weeks had passed and i was on my knees. He calmed my fears and talked me through his plan : low rate for 6x months / 4 months payments included in the loan (taking away fears of high repayments)
THE STING
The loans in principle and agreements were sent over including £14,000 of charges but it was realised it would only release £35k 4 more loans were sent over all wrong incorrect calculations etc and each one increasing,adding to the confusion but incorporating payments to lead us into a false sense of security. in a state of anxiaty,confusion and stressed to death, with emotions running high not really knowing what to do for the best. I signed ( not realising i signed away everthing i had, to a professional con artist ) I was now set up to fail
And if that was not bad enough i am now realising exactly what a unregulated business loan really means no legal advice from anywhere unless you can pay dearly for it, ombudsman, FSA, OFT, Citizen advice all tell you they cannot help! Quoted £20,000 to fight it from two different Law Firms you cannot get legal aid for business (even when its not)
So this is the clause added to the agreement
DECLARATION FOR EXEMPTION RELATING TO BUSINESSES
A declaration for the purposes of article 6 must have the following form and content—
“Declaration for exemption relating to businesses
(sections 16B and 189(1) and (2) Consumer Credit Act 1974)
I am/We are* entering this agreement wholly or predominantly for the purposes of a
business carried on by me/us* or intended to be carried by me/us.*
I/We* understand that I/we* will not have the benefit of the protection and remedies that
would be available to me/us* under the Consumer Credit Act 1974 if this agreement were a
regulated agreement under that Act.
I/We* understand that this declaration does not affect the powers of the court to make an
order under section 140B of the Consumer Credit Act 1974 in relation to a credit agreement
where it determines that the relationship between the creditor and the debtor is unfair to the
debtor.**
I am/We are* aware that, if I am/we are* in any doubt as to the consequences of the
agreement not being regulated by the Consumer Credit Act 1974 I/we should seek
independent legal advice.”.
*Delete as appropriate.
This declaration should not have been part of the contract because of the following reasons;
Two Blemain LMC directors knew the loan was not predominantly for business purposes this was within their actual knowledge following their home / site visit
The loan was 95% to finish our family home
Now read section 2 & 3. below (this is the piece lenders do not want you to know)
Consumer Credit Act 1974
You are here:
1974 c. 39
Part II
Section 16B
[F116BExemption relating to businessesE+W+S+N.I.
(1)This Act does not regulate—
(a)a consumer credit agreement by which the creditor provides the debtor with credit exceeding £25,000, or
(b)a consumer hire agreement that requires the hirer to make payments exceeding £25,000,
if the agreement is entered into by the debtor or hirer wholly or predominantly for the purposes of a business carried on, or intended to be carried on, by him.
(2)If an agreement includes a declaration made by the debtor or hirer to the effect that the agreement is entered into by him wholly or predominantly for the purposes of a business carried on, or intended to be carried on, by him, the agreement shall be presumed to have been entered into by him wholly or predominantly for such purposes.
(3)But that presumption does not apply if, when the agreement is entered into—
(a)the creditor or owner, or
(b)any person who has acted on his behalf in connection with the entering into of the agreement,
knows, or has reasonable cause to suspect, that the agreement is not entered into by the debtor or hirer wholly or predominantly for the purposes of a business carried on, or intended to be carried on, by him.
(4)The Secretary of State may by order make provision about the form, content and signing of declarations for the purposes of subsection (2).
(5)Where an agreement has two or more creditors or owners, in subsection (3) references to the creditor or owner are references to any one or more of them.
(6)Nothing in this section affects the application of sections 140A to 140C.]
Forums like this have years of repeating history of blatant abuse of the lending system.
I have started this thread to explore the abuse of unregulated loans. I would really like to hear from anyone who believes they took out a loan they know or believe should have been regulated.
Its easy to hang your head in shame thinking well i signed the agreement, I have found that when trying to get advice there are two different outlooks on this. Some people, particually those associated with lending tend to say, well you signed it! But the smarter ones ask a few more questions to get a bigger picture, then look at the whole story, its important to realise thousand's and thousand's of pounds are spent on training lenders to use mind games. It sounds odd but anyone who has been involved in sales will tell you, there are set plans to take you from A to B or to Z if they want to.
When i took my loan out a lot of confusion was deliberatley caused in brief (very brief)
Titles from the film THE STING
Starring Marc Goldberg not Paul Newman
THE PLAYERS
I applied through a broker who arranged LMC for £45k loan to finish our family home (we had built 3 x houses two were complete) our house was last because we had to wait for plans to be passed to extend it.
note; Brokers have direct access to LMC director Mark Goldberg they explain to him what the customer wants, their circumstances and he gets involved at a very early stage
THE SET UP
I was told it would be second charge, and if it was deemed a business loan, as it would speed things up, (at this stage i was'nt bothered what they called it ) there is no cooling off period, so the loan could be released in a couple of days.
THE HOOK
A loan was sent in principle £50k (why sign in principle?) then agreements and more in principle's £50k then £73k then £59k (its called price conditioning) i ageed to more than i originally wanted now at £59,000 including 3x months payments charges fees commissions etc the loan was ready to sign. all the messing up of paper work was a time wasting exercise because they know when you apply you need the money asap and if they drag it out the more desperate you become
THE TALE
Two LMC directors came to visit me(at a days notice) for a face to face meeting (fact finding so they are fully aware of my situation, and just how desperate i am) i had 3 x houses all on one title deed, so i had to offer all three as security, they asked loads of questions exposing how desperate i was etc.etc. I was told that LMC had stopped lending on new builds (liers they lend on anything of value) but they would make an exeption. I told them my proffession (it was'nt building houses niether have i ever been in the business of building houses this was a one off project to replace our home on 45% of the plot and two others) I was told to sign at the solicitors and the money would be released, i was ok to organise tradesmwen, i signed and it was sent to LMC
THE WIRE
A few days past and i phoned to ask why the funds had not been released. I was informed by Marc Goldberg that they had changed their mind ( gone back on his word and agreement) and now wanted first charge paying off my high street mortgage. with repayments over 6 x more than i had signed on a declaration of income stating what i could afford, our income could not pay over £6475 a month i was in a state of panic, frantic. but i was desperate and they knew it trades men were booked we was having to use a stand pipe for water etc. 6 weeks had passed and i was on my knees. He calmed my fears and talked me through his plan : low rate for 6x months / 4 months payments included in the loan (taking away fears of high repayments)
THE STING
The loans in principle and agreements were sent over including £14,000 of charges but it was realised it would only release £35k 4 more loans were sent over all wrong incorrect calculations etc and each one increasing,adding to the confusion but incorporating payments to lead us into a false sense of security. in a state of anxiaty,confusion and stressed to death, with emotions running high not really knowing what to do for the best. I signed ( not realising i signed away everthing i had, to a professional con artist ) I was now set up to fail
And if that was not bad enough i am now realising exactly what a unregulated business loan really means no legal advice from anywhere unless you can pay dearly for it, ombudsman, FSA, OFT, Citizen advice all tell you they cannot help! Quoted £20,000 to fight it from two different Law Firms you cannot get legal aid for business (even when its not)
So this is the clause added to the agreement
DECLARATION FOR EXEMPTION RELATING TO BUSINESSES
A declaration for the purposes of article 6 must have the following form and content—
“Declaration for exemption relating to businesses
(sections 16B and 189(1) and (2) Consumer Credit Act 1974)
I am/We are* entering this agreement wholly or predominantly for the purposes of a
business carried on by me/us* or intended to be carried by me/us.*
I/We* understand that I/we* will not have the benefit of the protection and remedies that
would be available to me/us* under the Consumer Credit Act 1974 if this agreement were a
regulated agreement under that Act.
I/We* understand that this declaration does not affect the powers of the court to make an
order under section 140B of the Consumer Credit Act 1974 in relation to a credit agreement
where it determines that the relationship between the creditor and the debtor is unfair to the
debtor.**
I am/We are* aware that, if I am/we are* in any doubt as to the consequences of the
agreement not being regulated by the Consumer Credit Act 1974 I/we should seek
independent legal advice.”.
*Delete as appropriate.
This declaration should not have been part of the contract because of the following reasons;
Two Blemain LMC directors knew the loan was not predominantly for business purposes this was within their actual knowledge following their home / site visit
The loan was 95% to finish our family home
Now read section 2 & 3. below (this is the piece lenders do not want you to know)
Consumer Credit Act 1974
You are here:
1974 c. 39
Part II
Section 16B
[F116BExemption relating to businessesE+W+S+N.I.
(1)This Act does not regulate—
(a)a consumer credit agreement by which the creditor provides the debtor with credit exceeding £25,000, or
(b)a consumer hire agreement that requires the hirer to make payments exceeding £25,000,
if the agreement is entered into by the debtor or hirer wholly or predominantly for the purposes of a business carried on, or intended to be carried on, by him.
(2)If an agreement includes a declaration made by the debtor or hirer to the effect that the agreement is entered into by him wholly or predominantly for the purposes of a business carried on, or intended to be carried on, by him, the agreement shall be presumed to have been entered into by him wholly or predominantly for such purposes.
(3)But that presumption does not apply if, when the agreement is entered into—
(a)the creditor or owner, or
(b)any person who has acted on his behalf in connection with the entering into of the agreement,
knows, or has reasonable cause to suspect, that the agreement is not entered into by the debtor or hirer wholly or predominantly for the purposes of a business carried on, or intended to be carried on, by him.
(4)The Secretary of State may by order make provision about the form, content and signing of declarations for the purposes of subsection (2).
(5)Where an agreement has two or more creditors or owners, in subsection (3) references to the creditor or owner are references to any one or more of them.
(6)Nothing in this section affects the application of sections 140A to 140C.]
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