Lenders are abusing exemption clauses to make loan agreements fit into unregulated

[Ruby]

Re: Lenders are abusing exemption clauses to make loan agreements fit into unregulat

Suffering, I could not have put it better myself!!! The FOS are a complete waste of space!

[cookieboy]

Re: Lenders are abusing exemption clauses to make loan agreements fit into unregulat

this sound very much like the work of Des Phillips and Uk farm Finance/Acorn Farma finance

Do the name Des Phillips,Mark Saunders,Peter Williams mean anything to you?????

[suffering]

Re: Lenders are abusing exemption clauses to make loan agreements fit into unregulat

sorry for the delay in replying no sorry those names mean nothing to me, but remember the stings are being pulled by Henry Moser and Marc Goldberg and his chums. at Lancashire Mortgage and Blemain. They dangle a very large carrot in front of the brokers paying very high commissions and bonuses much higher than other lenders this allows them to interfere in the lending process without you knowing. The brokers in turn vote for this crabby outfit promoting them as top lenders Greed rules over morals

[cul8rm8e]

Re: Lenders are abusing exemption clauses to make loan agreements fit into unregulat

I have dealt with a financial adviser who was supposed to put two lenders in place for a small development i was doing by myself.

The adviser sent me all documents with terms for both lenders before i would start handing out any Ł. Anyway i paid the fee for application to first lender who was funding in two stages to wind and watertight stage. A valuation report was the last thing required by the first lender which he got and was happy so he gave me the first Ł10k. I got all underbuilding work done and went back for the second stage release only to be refused due to an unsatisfactory valuation report! Yes it was satisfactory for the first stage.

I then found out that my financial adviser who gave me documents to say all was in place was now working for the first lender and there never was finance in place with the second lender, he witheld information from me.

The first lender then decided to add another problem for me saying that i had no exit route to pay him off at wind and watertight stage and this was now the reason for not giving me the second payment. I wounder if it was his new employee(my adviser) who told him i dont have the second lender in place. Oh and BTW he was a very old m8 of the first lender who worked with him for a number of years earlier. its amazing what you find out when you dig into things.

My land was valued at Ł50k before i went to any lender for funding but after the lender had a valuation done with all the underbuilding complete (16k spent on it to date)it was only worth Ł40k and the valuation report date was 6 months out of date, i asked for this to be sorted and got a copy of the new report with the correct date BUT signed by someone else. It so happens i was there when the lender and valuer was doing the valuation and the valuer gave the nice lender a lift in his car. i had another independent valuation done and guess what, It was valued at Ł72k as it stands. RICS say this is ground for negligence, I agree!!!!!! I wonder who was negligent, my two independent valuers or the lenders?

Getting back to the contractual matters. i used a financial adviser and a solicitor who looked over the contract and said everything is fine, i was never given any advice on what the wording in the contract meant from anyone.

it looks like i am now going to court to ry and defend by myself as i have no money for a solicitor. as i write this i have my nice new court writ in front of me which i got through the post today.


Some details f my contract:

1. The loan will be utilized by you for the following purpose :-

Business purposes for the development of 2 dwellings for onward sale or letting and not for occupation by you or your immediate family




Declaration for exemption relating to business (Sections 16B and 189(1) and (2) Consumer Credit Act 1974)

I am entering this agreement wholly or predominantly for the purposes of a business carried on by me or intended to be carried by me. I understand that I will not have the benefit of the protection and remedies that would be available to me under the Consumer Credit Act 1974 if this agreement were a regulated agreement under that Act. You declare that you will not reside in the property at any time during the currency of the loan.

I 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 aware that, if I am in any doubt as to the consequences of the agreement not being regulated by the Consumer Credit act 1974 I should seek independent legal advice.

I/we hereby accept the above offer of advance, the terms of which I/we fully understand and accept. I/we understand that any other parties concerned in this transaction are not acting as your agents and are not authorized to vary the terms of this offer in any way. I/we confirm receipt of a copy of this letter, which I have retained.

Please indicate your acceptance of the foregoing by signing and returning the attached copy of this letter.

ONLY SIGN THIS FACILITY LETTER IF YOU WISH TO BE BOUND BY ITS TERMS.

YOUR HOME IS AT RISK IF YOU FAIL TO KEEP UP REPAYMENTS ON A LOAN OR MORTGAGE SECURED UPON IT.

[suffering]

Re: Lenders are abusing exemption clauses to make loan agreements fit into unregulat

Sounds like Lancashire Mortgage Corporation, as the wording is identicle to mine. The citizens Advice wrote a article called, "set up to fail" its worth a read. As far as i am aware there is no law stopping the sharks setting people up to fail, on unregulated loans, but there should be! Its worth looking up the fraudulent misrepresentation Act 1967

[cul8rm8e]

Re: Lenders are abusing exemption clauses to make loan agreements fit into unregulat

All i can say on the matter of the Facility Letter is that it was created by Stephen @ West One Loans and not the lender I used.

[cul8rm8e]

Re: Lenders are abusing exemption clauses to make loan agreements fit into unregulat

Just a little addition to my previous input. If you can understand it

Mr White is the financial adviser
Mr Brown is the broker
Mr Black is the lender

I contact Mr white and his company charge Ł1000 to source funding, Mr white suggests 2 lenders which will incur 2 sets of fees, albeit it was looked at and accepted

Mr Brown supplies Mr White with terms of loan which includes all fees by % of funds required - approx Ł700 going by my figures

Mr Brown tells Mr White its Ł1000 for an application to be submitted to the lender Mr Black

Mr Brown gets his Ł1000 app fee (which i now know was processed through Mr Black`s company)and makes an application to Mr Black (himself)for funding

Mr Brown speaks to Mr Black on my behalf for the funding ( i now know theres a clear case of schizophrenia as they are both the same person working from the same office and who is a Director/Partner of both companies which are trading style names of a ltd company which he is also the Director of) - effectively he is running the who show

Mr Brown`s fee for his work is Ł1500 - effectively for asking yourself to loan money out and answering yourself back you get Ł1500 which is double the original % rate provided in writing by Mr White.
Mr Black`s arrangement fee is also Ł1500 - effectively for telling yourself YES you get another Ł1500 which is double the original % rate provided in writing earlier by Mr White.
Mr Brown/Black adds the fee of Mr Whites company to the loan also and charges a whopping great monthly percentage over xx months- effectively making more money

Contact Mr White and ask whats going on with the change in fees now being a fixed sum instead of a % of borrowing amount shown in the indicative terms?, he said in so many words, take it or leave it! By this time everything looked in order and I was hooked, accepted it with a grudge.


Got the first part of the agreed funding from Mr Brown/Black and started work
Looking for the second stage funding from Mr Brown/Black- problems start

Tried to contact mr White only to find out that Mr White left the company and did not put funding in place for second lender. Subsequently I found out Mr White was now found to be working in a nice sweet job as an employee of Mr Brown/Black for the second time around. Good mates?

Eventually I managed to be able to ask some questions of all 3, should i say 3 or one and a schizophrenic. Mr White had been given a job offer he simply couldnt refuse. It was either Mr Brown or Mr Black, (still unsure) who told me that he did not offer Mr White a job. WTF - effectivley Mr White spoke to either Mr Brown or Mr Black who offered him a job and the one i spoke to said he didnt offer Mr White a job, still to this day i have no idea what one i spoke to.

Anyway, Mr White, Mr Brown and Mr Black are working to this day together in harmony until judgement day in court!

Just out of curiosity i am wondering how it came about Mr White who was my Financial Adviser dealing with my case which wasnt concluded in any way at the time, took up employment with Mr Brown/Black and left me in the ****



On a last note!

Please rest assure i will, once this finishes in court, publicly name every single person along with all companies involved who has done me wrong.

[suffering]

Re: Lenders are abusing exemption clauses to make loan agreements fit into unregulat

personally i would name and shame them now you never know someone else may have a similar problem with them. (just my opinion)

[figaro123]

Re: Lenders are abusing exemption clauses to make loan agreements fit into unregulat

Just to let you know, Blemain are counterclaiming 14000 in an on going case. My defence among other this is an unfair relationship and irresponsible lending. My loan is 1044 per month and my income and affordability document says i can afford 723. The loan application form from Norton Finance is 10000, the loan was for 40000.

[Sickofbullies]

Re: Lenders are abusing exemption clauses to make loan agreements fit into unregulat

I am in a very similar situation and i am about to embark on an unfair relationship/irresponsible lending counterclaim with Lancashire MC.-To be honest they are simply crooks with a shop window.

[suffering]

Re: Lenders are abusing exemption clauses to make loan agreements fit into unregulat

The big Queston is why is there such a gulf between regulated and unregulated loans? all loans should be properly regulated

[suffering]

Re: Lenders are abusing exemption clauses to make loan agreements fit into unregulat

Subprime lenders two big cop-out's
1. They use brokers paying them big bribe / commissions to lay the blaim for overseeing and setting up the loan.

2. They ask you to sign at a solicitors then, the solicitor is expected to become a financial advisor i.e "The defendants had the benifit of independant legal advice" and signed a document stating there were no evidence of any pressure or undue influence. So the solicitor is now also psychiatrist

[suffering]

Re: Lenders are abusing exemption clauses to make loan agreements fit into unregulat

What is the purpose of unregulated loans? and how can a unregulated loan possibly benifit a borrower

[Amethyst]

Re: Lenders are abusing exemption clauses to make loan agreements fit into unregulat

It can't. All the major issues with loans that cannot be sorted out are with unregulated loans. I really feel for people who have been caught by these b*stards and I really don't know what to do about it. "set up to fail" is definately the business plan on these loans.

Thank goodness the CCA has been changed to cover loans of any value, but it doesn't help people who took loans pre 2008, and it doesn't help people who get kyboshed into a 'business' loan when it should have been personal.


In section 189(1) of the 1974 Act (definitions) for the definition of “individual” —


“individual” includes—

(a)
a partnership consisting of two or three persons not all of whom are bodies corporate; and

(b)
an unincorporated body of persons which does not consist entirely of bodies corporate and is not a partnership




“business ” includes profession or trade, and references to a business apply subject to subsection (2);

(2)A person is not to be treated as carrying on a particular type of business merely because occasionally he enters into transactions belonging to a business of that type.


Which all makes it sound easy, ''But I'm not in a business and the loan wasn't for a business'' should cut enough to get it investigated at least, but it isn't like that.

The definition of Individual didn't come into force until 1st April 2007, but the Business definitions were there already.

[suffering]

Re: Lenders are abusing exemption clauses to make loan agreements fit into unregulat

All i got from the FOS was you signed an agreement as a business loan. therefore they cannot look into it (loan taken out 2010)