Tweet
Re: Unregulated loan and Legal & Documentation Fee
Having chatted with Jumper about this earlier, I'm glad she has started a thread for this. I'm not very good at the finer points of agreements & terms, so it is good that Sparkie & Gallahad can help. Gallahad's agreement does seem to have exactly the same "LDF anomaly" as Jumper's, in that the LDF is actually listed as zero, but the itemised figures above the LDF line in the agreement have ALL been included in the total loan advance in Jumper's case. If these amounts are indeed all LDF's (and we may need to try and get further confirmaton of this from Blemain, as well as from the brokers) - then according to the agreement terms, they should surely NOT have been included in the advance.
The way that I ascertained this inclusion in Jumper's case was to check the opening loan account statement. In J's case, there were several amounts listed at the start of the loan, but the final balance owing at the END of day 1 was IDENTICAL to the total shown in line G of the itemised agreement figures. This indicates that - not only were these fees being paid gradually over the period of the loan - but account interest was being charged on them. If this is the case, then I believe the amount of each monthly payment which is directly attributable to these fees (and which also includes the attributable account interest) should be refunded - along with an additional 8% Statutory interest. The loan should then be re-scheduled with lower repayments, and the PDF's should then be payable upon loan settlement/redemption (with NO interest added).
As HH John Pugh stated, this can amount to several thousand pounds over the course of the loan, so it seems worth looking into. I think it may well be worth Gallahad checking his opening statement as mentioned above, as he may well have a possible claim also.
From what I can see, the calculation of any claimed redress in this matter is almost identical to calculations used for Single-Premium PPI claims - the only difference being that the LDF's still have to be paid upon settlement of the loan. What the claimant is effectively recovering is the extra interest they have been charged on this.
Having chatted with Jumper about this earlier, I'm glad she has started a thread for this. I'm not very good at the finer points of agreements & terms, so it is good that Sparkie & Gallahad can help. Gallahad's agreement does seem to have exactly the same "LDF anomaly" as Jumper's, in that the LDF is actually listed as zero, but the itemised figures above the LDF line in the agreement have ALL been included in the total loan advance in Jumper's case. If these amounts are indeed all LDF's (and we may need to try and get further confirmaton of this from Blemain, as well as from the brokers) - then according to the agreement terms, they should surely NOT have been included in the advance.
The way that I ascertained this inclusion in Jumper's case was to check the opening loan account statement. In J's case, there were several amounts listed at the start of the loan, but the final balance owing at the END of day 1 was IDENTICAL to the total shown in line G of the itemised agreement figures. This indicates that - not only were these fees being paid gradually over the period of the loan - but account interest was being charged on them. If this is the case, then I believe the amount of each monthly payment which is directly attributable to these fees (and which also includes the attributable account interest) should be refunded - along with an additional 8% Statutory interest. The loan should then be re-scheduled with lower repayments, and the PDF's should then be payable upon loan settlement/redemption (with NO interest added).
As HH John Pugh stated, this can amount to several thousand pounds over the course of the loan, so it seems worth looking into. I think it may well be worth Gallahad checking his opening statement as mentioned above, as he may well have a possible claim also.
From what I can see, the calculation of any claimed redress in this matter is almost identical to calculations used for Single-Premium PPI claims - the only difference being that the LDF's still have to be paid upon settlement of the loan. What the claimant is effectively recovering is the extra interest they have been charged on this.
Comment