Blemain Finance

[Bill-K]

Re: Blemain Finance

Info received, thanks, Grimbell. As it was a secured loan, I assumed it was not CCA-regulated, but I now see that it is. In that case, the settlement will be covered by the Consumer Credit (Early Settlement) Regulations 2004 as Blemain have pointed out, and the Rule of 78 method is replaced by the Regulation 4 method:-

http://www.legislation.gov.uk/uksi/2...ulation/4/made

With worked examples here:

http://www.legislation.gov.uk/uksi/2.../schedule/made

This appears to be known as the 'Actuarial Method' used in DavyB's link above, so presumably we just have to make sure we are punching in the correct figures to start with.

I note that there is over £3K in 'Additional Interest' and 'Costs and Charges' added to the settlement figure. According to Blemain's explanations, a large portion of the costs & charges is made up of amounts charged for telephone calls and letters.This "represents work undertaken by staff in monitoring your account, checking for late or missed payments and contacting you to make payment arrangements going forwards." At £30 to £35 a pop, I'm not sure this is a genuine reflection of the true costs !!!

A large part of the 'Additional Interest' is account interest charged on these 'Costs and Charges,' which were presumably just debited to the account 'as and when.' If these Costs & Charges can be ruled as excessive, then so can the portion of account interest charged on them.

[Turboman]

Re: Blemain Finance

Well done Grimbell and Bill

will look at things when i get on home computer

[grimbell]

Re: Blemain Finance

Hi
thanks again.
What grieves me is they must be charging contractual interest on the costs and charges as this amount is more than the charges! This I think will make it a never ending loan unless we do manage to find another buyer for our house.
i really would like to challenge these but thought you only had a chance with hardship cases now.

[Bill-K]

Re: Blemain Finance

Hi
thanks again.
What grieves me is they must be charging contractual interest on the costs and charges as this amount is more than the charges!
Para. 3 of J Bentliff's letter (the rotated page) confirms this interest was charged, and is included in the settlement figures.
i really would like to challenge these but thought you only had a chance with hardship cases now.
I don't think there is anything to prevent you from challenging these charges, as this is a loan - not a bank current account. But sure, if it goes to FOS, then it could take time, and hardship cases are given a certain priority time-wise.

I note that Blemain have casually ignored the early repayment calculation stipulated in the original loan agreement, and adopted the 'Actuarial' method with suspicious enthusiasm. There is no explanation given for this, and unless this departure from the agreed terms has been agreed to by both parties, then I'm not sure it can be implemented. The agreement states that 42.19% of the amount of credit is payable upon early settlement, and although the figures given are for illustration only, I am sure that the principle of their calculation should be adhered to. Using this method, it appears that you should receive an early settlement rebate of approx. 57.81% of the remaining balance, which comes to approx. £3300.

However, if the somewhat vague wording of the agreement means that 42.19% of the ORIGINAL Total Amount Payable would be due upon early settlement, then this would STILL give a rebate of approx. £1000.

[Turboman]

Re: Blemain Finance

Wow---what a comprehensive set of info you have sent us

I am back home now & playing catch-up to keep with my mate Grumps who's doing a stirling job

Will read thread + attachments + Bills replies---

Presumably all that early stuff in the thread re Credit Cards is not applicable to these issues

Turbs

[Turboman]

Re: Blemain Finance

Grimbell

To put into context Blenheims letter---could you please send us your letter of complaint detailing your grievances

Thanks

[Bill-K]

Re: Blemain Finance

Good stuff Turbo. Yeah - just the most recent stuff concerning this loan. I've commented on the other aspects of Grimbell's claim, but have left the actual settlement figure calculation to you. As I mentioned, there are two methods 'in the mix' here. One is the 'Contractual' method, as set out in the agreement - which Blemain have avoided using. The other is the 'Actuarial' method, as set out in the CC Early Settlement Regs 2004, and used by the calculator posted by DavyB. The 'Contractual' method may need some discussion to clarify the agreement wording, and the Actuarial method may need some checking to ensure that the figures entered into the calculator are accurate.

Grimblell - I have edited my second reply in blue in post #319, as it was misleading. My apologies.

[Turboman]

Re: Blemain Finance

Hi Grimbell

If your solicitors working today-can you get your statements back 28/3/2010 to present day

I would like to see what outstanding balance is actually shown on the statement (and also the interest rate employed thro 2010-2012 which is on the statements)

[grimbell]

Re: Blemain Finance

Hi all
i haven't been receiving my e-mail notifications so sorry for the delay. I will scan my letter later to day for you.
i think the change in the rebate calc was due to them no longer being able to use rule 78 but yes I did query why it was not as my agreement stated. That is why I was so shocked at the small amount given as a rebate, I thought it would have been a lot more. If this is how the accrurial system works then as far as I can see there is no great benefit in repaying early and only makes it easier for loan companies to keep you in their grip!

[grimbell]

Re: Blemain Finance

I sent my other statements. Hope you got them. They are all I have because they never used to supply statements.
i will look through my bits again but I think in the most recent letter bf say interest on the charges is simple interest which should be 8% I think but I am sure I have something somewhere that says the charges will be added to the account and interest of something like 15% will be added. Will have a hunt through.

[grimbell]

Re: Blemain Finance

I have been having lots of problems with my laptop but I think I have successfully sent what you asked for.

many thanks

[Turboman]

Re: Blemain Finance

Hi Grimbell

Sorry not been on your case--angiogram with NHS-lol

Right--got a lot of your stuff-but only actual statements from 1/10/2008 to 28/2/2010

I am particularly interested to see the statement to 9/5/2012 as I am interested in the Loan Balance shown thereon .---and reconcile with your Settlement Letter

Different firms use different settlement methods

ie--a simple 1,2, or 3 extra months interest on the outstanding balance as shown on your statements on top of the outstanding balance....indeed, some firms do not even implement the full interest charges as in their CCA

ie--some work out the amount still owed using the original TAP and then apply a Rebate using Rule of 78---often resulting in a mere 2 months extra interest payable on top of the Loan Statement Balance--(trying to make out they are doing you a good deal using the word Rebate)

In your case--they have separated your charges from your Loan Statement and divided it into 2 accounts before calculating the rebate based on the new method-----hence my interest in you giving me the 2012 statement to 7/5/2012

I would add-in my experience--that even though some firms are unhelpful,unsympathetic and downright awkward-----they never get their sums wrong

So I see this as a largely academic exercise -where we can help you understand their methods --and me & Bill can really understand their methodology for use in future cases

Will come back to issue of the charges later---where we can help you

You

[grimbell]

Re: Blemain Finance

Hi
i did send the up to date statements on mon. Hope you have got them also the other bits you asked for

[Turboman]

Re: Blemain Finance

Hi Grimbell
Yep got your letter + stmnt 1/10/2008 to 28/2/2009 to go with the one in the 10 page PDF covering 1/3/2009 to 28/2/2010
ie--I only have therefore the period 1/10/2008 to 28/2/2010----aint got any more Transactions statements on Monday--perhaps a gremlin--can you send em again please

Hi
i did send the up to date statements on mon. Hope you have got them also the other bits you asked for

[grimbell]

Re: Blemain Finance

Am having probs with Lappy but will try again.