Blemain Finance

[lindybee]

Re: Blemain Finance

This is near enough what it should say

WARNING: THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. LOANS ARE SECURED ON YOUR HOME.

Sparkie

I did find part of that ie. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT but I had to search for it, my agreement is 5 pages long and the first page is a maze of little boxes with various statements in them.
The agreement was sent out to me by the broker, but it does have Blemain's name on it as the lender.
I was contacted via a cold call, offering me a debt consolidation loan, in line with a government initiative!?? I'm still left wondering how they knew to target me?
I've been advised to make a claim against the Broker as a mis-sold policy, because I had needed a loan to temporarily consolidate a few debts and reduce outgoings until my income increased a few years later when I planned to repay the whole thing. Instead I was only offered one option, that with Blemain with a loan over 20 years (I was 57 at the time) The broker is FSIA registered.
The broker requested that I write a letter stating that I received additional income from my son (who lives with me), and a signed statement that if my son left home, I would either rent out his room or sell my property for a smaller one.
My credit history was A1, my only downfall was that my bank would not lend me the additional funds on my existing mortgage due the the income multiplication factor.
I'm also seeking a refund of unreasonable charges and associated interest from Blemain.

[lindybee]

Re: Blemain Finance

I did find part of that ie. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT but I had to search for it, my agreement is 5 pages long and the first page is a maze of little boxes with various statements in them.
The agreement was sent out to me by the broker, but it does have Blemain's name on it as the lender.
I was contacted via a cold call, offering me a debt consolidation loan, in line with a government initiative!?? I'm still left wondering how they knew to target me?
I've been advised to make a claim against the Broker as a mis-sold policy, because I had needed a loan to temporarily consolidate a few debts and reduce outgoings until my income increased a few years later when I planned to repay the whole thing. Instead I was only offered one option, that with Blemain with a loan over 20 years (I was 57 at the time) The broker is FSIA registered.
The broker requested that I write a letter stating that I received additional income from my son (who lives with me), and a signed statement that if my son left home, I would either rent out his room or sell my property for a smaller one.
My credit history was A1, my only downfall was that my bank would not lend me the additional funds on my existing mortgage due the the income multiplication factor.
I'm also seeking a refund of unreasonable charges and associated interest from Blemain.

I was very careful to check the broker was FISA , had I known Blemain was not, I'd never have touched them with a barge-pole! But I had no documentaion from Blemain or information about them until after I'd signed the agreement.
L

[Sparkie1723]

Re: Blemain Finance

I was very careful to check the broker was FISA , had I known Blemain was not, I'd never have touched them with a barge-pole! But I had no documentaion from Blemain or information about them until after I'd signed the agreement.
L

Hi lindybee
It is my understanding that this should be shown very prominately on the front of the agreement, but would have to seek real clarification of this.

Re the documentation from Blemain they operate very much in the business mode of Swift Advances plc.........you do not hears from them till after you have signed the agreement that shows what depths they can sink to.

One of the main difference between Blemain Finace Ltd and Swift Advances plc is that Blemain securitise their loans the other crowd does'nt ....they SELL them.

Sparkie

[lindybee]

Re: Blemain Finance

Hi lindybee
It is my understanding that this should be shown very prominately on the front of the agreement, but would have to seek real clarification of this.

Re the documentation from Blemain they operate very much in the business mode of Swift Advances plc.........you do not hears from them till after you have signed the agreement that shows what depths they can sink to.

One of the main difference between Blemain Finace Ltd and Swift Advances plc is that Blemain securitise their loans the other crowd does'nt ....they SELL them.

Sparkie

Maybe Blemain just get others to sell them instead :tinysmile_hmm_t2:
My first charge lender was most unhappy today when I showed them all my documentation from Blemain. I may now have another ally!

[lindybee]

Re: Blemain Finance

Can any-one clarify something for me please?
Shouldn't annual statements display the APR especially where a loan rate is variable?
Thanks
L

[Sparkie1723]

Re: Blemain Finance

Can any-one clarify something for me please?
Shouldn't annual statements display the APR especially where a loan rate is variable?
Thanks
L

You can be absolutel sure on that one lillybee ......and also if there has been a variation to the APR that also must be shown and the date it applied from.

Sparkie

[lindybee]

Re: Blemain Finance

You can be absolutel sure on that one lillybee ......and also if there has been a variation to the APR that also must be shown and the date it applied from.

Sparkie

That's interesting Sparkie, thanks! I was sent a batch of ammended statements recently, when I raised issue over the clarity of information they'd previously sent to me. Neither they nor the original statements mention any interest rate. The only place it is, is on the initial agreement (its a variable rate) hmm!
Plus none of the statements go back prior to Oct 2008.
(I have already requested an SDAR)
L

[Sparkie1723]

Re: Blemain Finance

That's interesting Sparkie, thanks! I was sent a batch of ammended statements recently, when I raised issue over the clarity of information they'd previously sent to me. Neither they nor the original statements mention any interest rate. The only place it is, is on the initial agreement (its a variable rate) hmm!
Plus none of the statements go back prior to Oct 2008.
(I have already requested an SDAR)
L

Hi lindybee,#

I have posted this on the Swift Advances plc thread but post it her as well
I have highlighted what you asked about in red.
There are only two provisions of the New Consumer Credit Act that apply to old unregulated agreements section 140 and this one.

Sparkie

With any fixed sum credit, where the agreement lasts for more than one year, you now have to provide an, at least, annual statement of the amount due under the agreement The consequence of the Act’s provisions, as so amended, will be that you have to give a statement covering a period of not more than one year from the start of the agreement and the statement has to be given within 30 days of the end of the period covered by the statement, and then it must be given at least annually thereafter. Where an agreement is already in existence at the commencement date, under the regulations of 1 October 2008, the first statement must be given to cover a period of not more than one year from that commencement date, and again given within 30 days of the date when you end the information covered by the statement.
During any period while you are in default of providing a statement which you should have provided, you cannot enforce the agreement, the debtor is not due interest arising in respect of the default period nor is liable for any default sum arising during the default period.You must provide it free of charge. Both the statements in this paragraph apply to all the new notice forms explained under this heading 8.
The regulations state that the following information will have to be included in each statement. The information is comprehensive. The list is as follows:-

• show the dates explaining the period covered by the statement;
• give the debtor’s name and address (so far as you know it);
• give your name and address (which might be an internet address) and a telephone number. If the debtor has been given details of a particular employee or category of employees, the appropriate telephone number should be given;
• the account name and number;
• the principal amount of the borrowing provided or to be provided, shown as one figure (it is unclear at the moment in an hp agreement whether this will be the amount financed or the total amount of the credit, including the part-exchange allowance);
• the applicable interest rate or rates during the period of the statement, and if they varied, when the variable rates applied. If the interest is pre-computed and rolled up with the principal at the beginning of the credit period (as it will be in hp), then you have to give the interest rate quoted in the original agreement along with a statement explaining how and when interest charges are calculated and applied;
• the date the agreement took effect;
• the date of the first movement on the account;
• the duration or minimum duration of the agreement;
• the opening balance at the start of the statement period;
• payments made under the agreement during the period and debits to the account during the period;
• interest or other charges payable by the debtor which become due on the account during the period, whether or not they relate to that period;
• any movements on the account during the period not relating to payments, interest or charges;
• the closing balance;
• a notice telling the debtor he can settle his agreement early;
• a notice warning the debtor that if he pays less than the agreed payment, the debt may take longer to clear and may cost him more;
• in hire purchase agreements, a repeat of the hirer’s right of early termination under the halves rule;
• a statement about complaints and disputes and the possibility of using the Ombudsman;

[CleverClogs]

Re: Blemain Finance

If one checks the OFT Public Register, one will see that Blemain's licence expired on 9 May 2011 and, if one looks further, one will find that their renewal application, dated 4 Mat 2011, seeks to change what they do and how they do it:

Consumer credit Retained
Consumer hire Retained
Credit brokerage Retained
Credit reference agency Removed
Debt adjusting/counselling Removed
Debt collecting Removed

Canvass Off Trade Premises Details:
To restrict the provisions of the licence to exclude the right to canvass off trade premises for debtor-creditor-supplier agreements or consumer hire agreements.

[lindybee]

Re: Blemain Finance

If one checks the OFT Public Register, one will see that Blemain's licence expired on 9 May 2011 and, if one looks further, one will find that their renewal application, dated 4 Mat 2011, seeks to change what they do and how they do it:

Thanks cleverclogs, can you explain in simple terms exactly what that means in terms of changes, especially in relation to existing customers, please?

[lindybee]

Re: Blemain Finance

Hi lindybee,#

I have posted this on the Swift Advances plc thread but post it her as well
I have highlighted what you asked about in red.
There are only two provisions of the New Consumer Credit Act that apply to old unregulated agreements section 140 and this one.

Sparkie

With any fixed sum credit, where the agreement lasts for more than one year, you now have to provide an, at least, annual statement of the amount due under the agreement The consequence of the Act’s provisions, as so amended, will be that you have to give a statement covering a period of not more than one year from the start of the agreement and the statement has to be given within 30 days of the end of the period covered by the statement, and then it must be given at least annually thereafter. Where an agreement is already in existence at the commencement date, under the regulations of 1 October 2008, the first statement must be given to cover a period of not more than one year from that commencement date, and again given within 30 days of the date when you end the information covered by the statement.
During any period while you are in default of providing a statement which you should have provided, you cannot enforce the agreement, the debtor is not due interest arising in respect of the default period nor is liable for any default sum arising during the default period.You must provide it free of charge. Both the statements in this paragraph apply to all the new notice forms explained under this heading 8.

The regulations state that the following information will have to be included in each statement. The information is comprehensive. The list is as follows:-

• show the dates explaining the period covered by the statement;
• give the debtor’s name and address (so far as you know it);
• give your name and address (which might be an internet address) and a telephone number. If the debtor has been given details of a particular employee or category of employees, the appropriate telephone number should be given;
• the account name and number;
• the principal amount of the borrowing provided or to be provided, shown as one figure (it is unclear at the moment in an hp agreement whether this will be the amount financed or the total amount of the credit, including the part-exchange allowance);
• the applicable interest rate or rates during the period of the statement, and if they varied, when the variable rates applied. If the interest is pre-computed and rolled up with the principal at the beginning of the credit period (as it will be in hp), then you have to give the interest rate quoted in the original agreement along with a statement explaining how and when interest charges are calculated and applied;
• the date the agreement took effect;
• the date of the first movement on the account;
• the duration or minimum duration of the agreement;
• the opening balance at the start of the statement period;
• payments made under the agreement during the period and debits to the account during the period;
• interest or other charges payable by the debtor which become due on the account during the period, whether or not they relate to that period;
• any movements on the account during the period not relating to payments, interest or charges;
• the closing balance;
• a notice telling the debtor he can settle his agreement early;
• a notice warning the debtor that if he pays less than the agreed payment, the debt may take longer to clear and may cost him more;
• in hire purchase agreements, a repeat of the hirer’s right of early termination under the halves rule;
• a statement about complaints and disputes and the possibility of using the Ombudsman;

Thanks Sparkie, I knew I'd remembered seeing that somewhere, but it's very helpful to those on this thread.
I've gone back through the various formats of information they've sent me to date. The interest rate is on there on the latest (revised) ones sent out mid-April this year, its just in the transactions column, not with the details of the agreement which is where I'd sort of expected it to be.
My name is on the statement but not my address (although this is on the accompanying letter which has their tariff of charges on the back).
It mentions most of the other things, I wasn't sure if

the date of the first movement on the account

is the same as opening balance at the top of the statement period...I presume that is? although none of the statements show details prior to Oct 1998, which is why I was advised to request a SAR.

L

[Sparkie1723]

Re: Blemain Finance

Another point I have noticed on the Blemain underwriting Approval Sheet .There is an entry stated to be Gross Loan.

This would imply that they consider all the amounts stated as brokers fees etc etc are either extra loans or are included in the full loan amount.

I have always argued that the references on unregulated loan agreements they are charges for credit cannot be classed as such for reason......the phrase charges for credit are only mentioned in the CCA Act . and associated statutes and Regulations...and as the CCA act does not apply.....they cannot be construed as Charges for credit.
The phrase CHarges for Credit derives from such statutes and regs.

These sub prime lenders insist that the CCA act does not apply and they are unregulated loans ....therefore they cannot rely on and barred from using such things from the CCA act....in the same way that the borrower cannot rely on same said act.

These fees and charges are either extra LOANS or it is One gross loan with no charges for credit....just as their Underwriting Sheet states they cannot have it both ways.



Sparkie

Just my views I would think about this and get a good legal opinion on them

[lindybee]

Re: Blemain Finance

Another point I have noticed on the Blemain underwriting Approval Sheet .There is an entry stated to be Gross Loan.

This would imply that they consider all the amounts stated as brokers fees etc etc are either extra loans or are included in the full loan amount.

I have always argued that the references on unregulated loan agreements they are charges for credit cannot be classed as such for reason......the phrase charges for credit are only mentioned in the CCA Act . and associated statutes and Regulations...and as the CCA act does not apply.....they cannot be construed as Charges for credit.
The phrase CHarges for Credit derives from such statutes and regs.

These sub prime lenders insist that the CCA act does not apply and they are unregulated loans ....therefore they cannot rely on and barred from using such things from the CCA act....in the same way that the borrower cannot rely on same said act.

These fees and charges are either extra LOANS or it is One gross loan with no charges for credit....just as their Underwriting Sheet states they cannot have it both ways.



Sparkie

Just my views I would think about this and get a good legal opinion on them

My loan agreement which I received from the broker, and duly signed states that it is regulated by the CCA.
The additional charges and fees were added onto the full loan amount at the time the loan was taken out.
There are two figures relating to credit charges: i.e. interest charges and total charge for credit, the latter being much higher than the first.
I've made an official complaint regarding the various charges which I feel are unreasonable, and despite the complaints procedure which Blemain aspire to, I received no immediate response and then finally only a written response 6 days later, to inform me that I would receive a response to my complaint in approx 8 weeks, and also pointing out to me that as my loan may not be regulated, they believe that the FOS would not be able to assist me if I remained unhappy about the outcome and suggesting I may wish to refer my complaint to the Finance and Leasing Association???
errrrrr??
I still have had no response to my requested SDAR.
(all communication has been by letter sent as recorded delivery, and I know that it has been received.)

[gallahad]

Re: Blemain Finance

Hi Lindy, seems like the usual blemain strategy. I believe that if your loan is over £25 k it cannot be regulated.
Regards
G

[Sparkie1723]

Re: Blemain Finance

Hi lindybee,
Once they have cashed the cheque They have 40 days from the day of receipt of the SDAR not from the date of cashing the cheque....if they do not comply bwith the 40days they will be in breach of the Data Protection Act 1998.

What some lenders try is to bluff you and say ...we never cashed the cheue untill so and so date so the timescale starst from then......WWWWRRONGGGGG!!! starts from the day they received it...the cashing of the cheque is the start of the instruction to comply.

Sparkie
------------------------------- merged -------------------------------

Hi Lindy, seems like the usual blemain strategy. I believe taht if your loan is over £25 k it cannot be regulated.
Regars
G

HIya G,

I think the loan was for £16000...BUT it was a secured reguated one is that correct lindybee??
Sparkie