Blemain Finance

[Bill-K]

Re: Blemain Finance

Turbo has asked me to clarify my post #319, where I referred to the original loan agreement in which it is agreed in the section headed 'Key Information,' that "The Borrower has the right to repay early. The amount payable per £100 of the Amount of Credit if the Borrower chooses to repay early is:
...After 72 Months...£42.19."

My understanding of this is that the loan is now over 72 months old, and therefore Grimbell would have to pay 42.19% of the "Amount of Credit" in order to settle the loan by early repayment. What exactly is the "Amount of Credit," though ? I took this to mean the 'Remaining Balance Payable,' - but the "Amount of Credit" - as described in the agreement - is the Total Advance of £13,500. So - I guess my original figures didn't add up.

42.19% of £13,500 is £5695.65 - which is what the agreement says the settlement figure should be. There is no mention of any additional costs, as listed by Blemain, but I daresay that these may have been accounted for in the small print somewhere.

Th other way I looked at this was to work out the actual 'Rebate' - which should - to my mind - be 57.81% of £13,500 (ie., 100% less 42.19%). This comes to £7804.35. But again, these figures have been totally discounted anyway, by Blemain's suspiciously enthusiastic adoption of the 'Actuarial Method.'

[Turboman]

Re: Blemain Finance

Hi Bill

Thanks for replying to my answer phone message-lol
I knew your figures were awry-lol
Even now--your interpretation of the settlement terms of 42.19% of £13,500 = £5695.65 may be right---but there is still to come off" which may be reduced by a rebate"---which we are not party to.

Anyway, I now fully understand the settlement letter and I firmly believe that it is to Grimbell's advantage that the Actuarial Method is being used now

I'm drafting my next explanatory post "in another place" if you care to take a look before you set off to captain your boat on the canals

Have a good hol mate

Turbs

Turbo has asked me to clarify my post #319, where I referred to the original loan agreement in which it is agreed in the section headed 'Key Information,' that "The Borrower has the right to repay early. The amount payable per £100 of the Amount of Credit if the Borrower chooses to repay early is:
...After 72 Months...£42.19."

My understanding of this is that the loan is now over 72 months old, and therefore Grimbell would have to pay 42.19% of the "Amount of Credit" in order to settle the loan by early repayment. What exactly is the "Amount of Credit," though ? I took this to mean the 'Remaining Balance Payable,' - but the "Amount of Credit" - as described in the agreement - is the Total Advance of £13,500. So - I guess my original figures didn't add up.

42.19% of £13,500 is £5695.65 - which is what the agreement says the settlement figure should be. There is no mention of any additional costs, as listed by Blemain, but I daresay that these may have been accounted for in the small print somewhere.

Th other way I looked at this was to work out the actual 'Rebate' - which should - to my mind - be 57.81% of £13,500 (ie., 100% less 42.19%). This comes to £7804.35. But again, these figures have been totally discounted anyway, by Blemain's suspiciously enthusiastic adoption of the 'Actuarial Method.'

[Turboman]

Re: Blemain Finance

Hi Grimbell

Have now studied all your info and for clarity, I detail the relevant facts before I comment. This also will assist Bill & DavyB to see the info.

CCA--Loan Info

There is no PPI on the Loan

Loan £13,500

Brokers Fee £950
Total Loan £14,450

Term 96 mths
Payment pm £258.48 @ 14.9% [However, I have used £262.11 @ 15.40% as on the 2 statements]

Interest is calculated on each due date by applying the interest per annum to the "Balance Outstanding" on the preceding Due Date and dividing the product of that application by 12.The resulting amount is then added to the "Balance Outstanding". "Balance Outstanding" means the aggregate of the credit advanced under the Agreement, fees and charges charged by the Lender and interest added on each Due Date, less any payments made by the borrower.

Settlement Info on the CCA is vague --ie £42.19 per £100 of the Amount of Credit ---and a rebate may be given.
However, Blenheim have now said that they are using the Actuarial Method in accordance with the OFT.--Consumer Credit(Settlement information) Regulations 1983

Date of Agreement is 28/2/2006
Date of first Payment is 28/3/2006


Number of payments made up to and including 28/4/2012 is 74

The Settlement Letter Details--dated 9/5/2012

a)-Amount Outstanding under the agreement £5,766.41

b)-Less Rebate Calculated in accordance with Early Settlement Regs-2004 £-633.95
c)-Redemption Administration Fee £195.00
d)-Additional Interest £1,727.98
e)-Building Insurance Charges to Date £45.00
f)-Costs & Charges £1,343.75

g)-Settlement Date 31/5/2012


h)-Total Settlement Figure £8,444.19

Addressing item a) in the Settlement Letter

There exists a possibility for confusion here between the Balance Outstanding on the Loan Statements and the Amount Outstanding under the agreement.

These are two entirely different items, the Balance Outstanding on the Loan Statements is the true balance that you owe at any point in time and is

"Balance Outstanding" means the aggregate of the credit advanced under the Agreement, fees and charges charged by the Lender and interest added on each Due Date, less any payments made by the borrower.

The Amount Outstanding under the agreement as on your Settlement Letter is the balance of the loan outstanding as on the agreement -assuming that all monthly payments were made on time and in full.

So---the Amount Outstanding under the agreement is (96-74) = 22 payments @ £262.11 = £5,766.41 (as on the Settlement Letter)


Addressing item b) in the Settlement Letter

As I illustrated in post xxx , there are basically 2 main methods of calculating the Settlement Balance

1)-Using the Balance Outstanding on the Loan Statements + a number of extra months interest payments as a penalty-typically-1-2.
2)-Using a method that calculates the Amount Outstanding under the agreement----further reduced by a rebate

Both methods sometimes attract an "Admin Fee" too on redemption of the Loan

So----Blenheim are using method 2, so we first need to calculate what the Loan Balance would have been assuming all payments were made on time---Using Loan Amortization ( see this thread for an explanation) and as they are effectively using Simple Interest we can even use the standard Excel Loan Amortization template--which I attach below-
Grimbell.xls
Grimbell.xls

-scroll to the 74th payment--you will see that the Loan Balance Outstanding on 28th April 2012 would have been £4,999.21 and then examine one cell down and one to the right--this is the amount of interest that would be paid from payments 75-96 ie £767.24
---so we are expecting a Rebate (rebate of that interest of £767.24) for paying off the loan early.

Blenheim have calculated that Rebate of Interest as £-633.95 which means that we are only paying £133.29 of the interest--ie around 2 months interest (as at around month 74 the mthly interest is about £66 pm)----so thats quite a good deal (imo)

Using the link that DavyB supplied us for calculating the Settlement Figure- we get £5,116.58 as the Settlement Figure (the amount paid of £19,396.14 is correct--the derived interest % is wrong, but thats because different interest calc methods are used-but insignificant to this exercise)

ATTACH HERE ---having trouble attaching-will research later

Blenheim get £5,766.41-£633.95 (a - b) = £5,132.46 which is near enough as only £16 different from our £5,116.58

Addressing item c) in the Settlement Letter

So we have a good deal in only being charged an extra £133.29 of interest----but then they spoil it by bringing a Redemption Fee into play of £195.00 (I see in the terms they reserve the right to charge for settlement info to 3rd parties but can't find a Redemtion Administration Fee.

So--you are being charged £195.00+£133.29 = £328.29 to settle early -over and above what you truly owe as at 28th April 2006.

--which still ain't excessive at all in my experience (imo)

Addressing item e) in the Settlement Letter

I see in your correspondence that you are in dispute as to whether you correctly notified them re having separate house insurance. I also cannot understand that there seems to be only one charge of £45 on 13/7/2011--yet no other on the 2 statements I've got.

No matter---my brief is re the Settlement Figures--I'll leave this issue with you to negotiate.

Addressing item d) and f) in the Settlement Letter

As I have described above, the Early Settlent Regs 2004 assume all payments have been met on time and no additional charges. Therefore, Blenheim have extracted all charges and associated Interest from the actual Rebate Calculation and detailed it separately on your Settlement Letter.

I note that Charges are £1,343.75 (£1,388.75 in Buildings Insce is added)

Also i note Blenheim have told you that the Additional Interest of £1,727.98 includes both interest on the charges and also interest incurred because of payments entering the account beyond the due date.

I have amended the spreadsheet above to calculate the portion of the interest solely due to charges and this is in the order of £1,328 so additional interest due to delayed payments is approx £400 (I have summarised the charges into month ending on 28th-rather than enter the exact dates-but its near enough.

Grimbell--2.xls



Addressing item h) in the Settlement Letter

So leaving aside the debate on whether the charges are a fair amount for the work involved--

I basically agree with all the figures resulting on a Settlement of £8,444.19 (which Blenheim say can be reduced by 5 charges if you agree the Settlement)--I won't detail effect of that at this moment in time as the figures will change by time you get a revised Settlement Quote


Hope this helps you a bit Grimbell

Turbs

[grimbell]

Re: Blemain Finance

Thank you for explaining things. I will have to read it a couple of times first but basically your saying it's right.
the insurance also incurred an admin fee of £16 but I have the proof that I did send them what they asked for so I will expect them to remove those two amounts.

Re the charges what do you think my best bet is? Should I just accept their offer and be done with it.
we lost our buyer so house is still on market and a new redemption figure will be required later.
Thanks again

[Guest]

Re: Blemain Finance

Lot of excellent work there Turbs, well done.

D

[Turboman]

Re: Blemain Finance

Thanks Grimbell & DavyB

re the attachment JPG which wouldnt load in middle of post--have done it as a PDF here

Grimbell-FinanceCalcs.pdf

[Turboman]

Re: Blemain Finance

Re what to do about the charges--we'll discuss that with Di30 over weekend

Do we go straight to FOS?

Do we send the more formal LBA letter-than the request you sent?

As I say--we'll discuss it with Di tomorrow

Turbs

[suffering]

Re: Blemain Finance

I am also having a nightmare with Blemain in fact i have not seen a case as bad as mine yet! they basicly encourage anyone with equity in their property to take a loan with them then financially rape them., pretending to help them along the way untill the equity has gone. they are good at using fear tactics so you dont complain constantly mentioning receivership. Just about everything is done by phone so you have no record of what has been agreed (however they do keep a record of all phone coversations i have seen a copy ) I cant go into details of my case yet as i am not ready but i just wanted to point you in the direction of a case Thomas v Blemain which was successful good luck. If any one has won against these rouges please inform others

[di30]

Re: Blemain Finance

Lol, cheers for pm Turbo.

Not been online much, just briefly here and there over the past few weeks, we've had our family friend from the states staying with us, lovely lad too, he went back today, so will take a looksie through now, thank you.

[di30]

Re: Blemain Finance

Excellent Turbo

[di30]

Re: Blemain Finance

I am also having a nightmare with Blemain in fact i have not seen a case as bad as mine yet! they basicly encourage anyone with equity in their property to take a loan with them then financially rape them., pretending to help them along the way untill the equity has gone. they are good at using fear tactics so you dont complain constantly mentioning receivership. Just about everything is done by phone so you have no record of what has been agreed (however they do keep a record of all phone coversations i have seen a copy ) I cant go into details of my case yet as i am not ready but i just wanted to point you in the direction of a case Thomas v Blemain which was successful good luck. If any one has won against these rouges please inform others

Hi, sorry to hear of your issues here.

I expect you have already done so, but just in case, have you requested for paperwork/data of this loan account in forms of a Subject Access Request (SAR)?

If not and you want to do this, let me know and I will post up a template letter. There maybe some useful info/details enclosed within the SAR which may help your case.

[di30]

Re: Blemain Finance

Re what to do about the charges--we'll discuss that with Di30 over weekend


Do we go straight to FOS?

Do we send the more formal LBA letter-than the request you sent?

As I say--we'll discuss it with Di tomorrow

Turbs

Not gone all through the thread yet, just not got round to it yet, when you say charges, is this you mean PPI or another form of charges?
Just double checking lol.

A LBA may help, if any further information can be given, just by giving the option of 14 or 21 days max, if they do not come back with decision or not one at all, then move on to the FOS to complain.

[Turboman]

Re: Blemain Finance

Thanks for coming Di--so so pleased you had a nice time with your friend from the states--

Yep--really pleased with my post 333 - I think its my best ever since I was asked to help on PPI ( & when I sent for you & Marshy--lol)- (even though this particular one is not a PPI claim, but settlements and charges)--

--I even got compliments from Davy B which is praise indeed---if you promise not to divulge--me & Bill might even whisper to you who DavyB really is when we are in PAG--lol

Will summarize where we are Di re Penalty Charges on this thread and the correspondence so far (which me & Bill are party too) so you can advise--probabably after tea Di

[rudiruby]

Re: Blemain Finance

this is all very interesting - how much date can one expect to get in these subject access requests (new here

[rudiruby]

Re: Blemain Finance

sorry data