Blemain Finance - FSA - undertaking

[Amethyst]

From oct 06 but havent seen it on here so here it is - re rule of 78

http://www.fsa.gov.uk/pubs/other/und...ng_blemain.pdf

[grimbell]

Re: Blemain Finance - FSA - undertaking

This is for mortgages but I think from reading other threads on them OTR you will find they still use it on loan redemptions!

[strangewayofsavin]

Re: Blemain Finance - FSA - undertaking

Mortgages are complex, but most ERC's are quoted on paying the motrgage off early, and would not stand up in court for repossesions.
It is unproved, but because the Mortgage companies manufacture their products, and in Line with Libor as well as the bank Of England Interst rates, this puts the lender under a manufactured product exclusive to mortgage companies.
If you have a bad credit rating, this means you are punished further, by and inflated interst rate i.e 3.5% over base rate, this means 3.5% over the BOE base rate.
Most mortgages are governed by LIBOR, which is the banks 1/4 year interst rate.
So if your Mortgage intest rate climbs by every 1/4% rasie by the Bank Of England monthly, then again by the 1/4 year LIBOR rate, then the ERC, and exit fee, are purely determind by the Mortgage company, and the fact they punish you by and inflated ERC (because of your credit record) means the ERC is manufactured, and would fall under the same reclaiming right as penalty charges.
The product you bought into is governed by the same laws, and if not, the banks and mortgage companies would be governed by the same laws as Microsoft, and the current accusations, accused by the Dairy industry for price fixing, for the supermakets.
Price fixing is price fixing, the fact that a consumer can be punished for their credit rating, by inflating the interest rate, the BOE interest rate, the LIBOR rate, and the ERC, amounts to theft in my eyes, atleast obtaining money by manufactured deception, or hidden penalty charges, unlawful in common law.