Blemain Finance repossession Unfair relationship Unfair charges

[welshperson]

Re: Blemain Finance repossession Unfair relationship Unfair charges

If anyone has a court case ongoing with blemain then I have other information on blemain / monarch recoveries that may help but I don’t want to post it on an open forum until I have used it in court, if you have a court case going on I will give you this information just send me a PM
　
　
I think the monarch recoveries issue is out in the open and explained but if any questions or info on this point then ask,
How about we now look at the terms and conditions of blemains agreements. I really don’t think people realised what they were signing up for.

If anyone read and understood what they were signing up for and then signed the agreement with full knowledge of what you were signing then you need the help of a good psychiatrist (you may be nuts)

If like most people you just read the front page and signed the agreement in the belief that a large financial institution is not going to do anything bad to you, or there are rules and regulations that wont allow anything bad to happen to you. (this is no door to door salesman big companies don’t scam people)

The above paragraph sound familiar?

in the next few days I will show you how you signed a document that allows blemain to take every penny you earn for the rest of your life, never mind how much you earn.

Now hands up who would sign a document allowing someone to take all your monie you ever earn for the rest of your life,

If you didn’t put your hand up to the above then why did you sign a blemain loan agreement, because you were misled, coned, scammed, lied too, call it what you will but one thing is for sure it was not explained to you, there were no open and fair dealings, and you defiantly didn’t enter the agreement with your eyes wide open.

Dig out your agreements and the terms and conditions and see if they are the same as the ones I post up tomorrow.

Wp

[welshperson]

Re: Blemain Finance repossession Unfair relationship Unfair charges

I have made a bold statement in my above post, so now it is time to explain and find out what is unfair about Blemains loan agreements, and what rules, regulations would apply.
So a brief look at the rules first about what is an unfair term and why it is unfair, there are a lot of guidelines about what is an unfair term, so I will post up some things I think anyone attempting to challenge an unfair term should read.

The Unfair Terms in Consumer Contracts Regulations 1999

Unfair Contract Terms Act 1977

Unfair contract terms guidance

Fairness of terms in consumer contracts

Statement of Good Practice

Standard form contract

Common law status

There is a lot more information on what is fair and what I classed as unfair, including some good case law but the information in the above will explain why something in a contract could be classed as unfair.

Below is the exact words from my agreement, and as they are basically a standard agreement then most people are going to have the same terms and conditions,

This part can be found on the first page of the agreement and under the heading and I have underlined the relevant parts. (My emphasis)

Key financial information

“If the lender varies the interest rate by notice under clause 3, it will in that notice advise the borrower of any increase in the number of monthly payments and/or of any increase or reduction in the amount of monthly repayments,

If charges payable by the borrower as set out in the key information or under clause 2 are added to the balance outstanding, the lender may, by not less than 7 days notice in writing to the borrower increase, the number of monthly repayments and/or increase or reduce the amount of the monthly repayments. If the lender dose not then the amount of the final monthly repayment will be increased to an amount sufficient to repay the balance outstanding in full.”

Now on the sane document look under the heading

Other financial information

“ The lender may vary the interest rate applying under this agreement to take account of actual or expected changes in market conditions by giving the borrower not less than seven days notice in writing of the variation, in calculating the apr no account has been taken of any variation of the interest rate.”

The above paragraphs are taken from Blemain loan agreement and what are they allowing blemain to do?

Now the implications these terms have on a borrower is that they allow blemain to charge whatever interest rate they want, and to extend the term of the agreement to as long as they want.

As an extreme example I will explain what could happen under the terms blemain have written into the agreements. Were they have given themselves the power to do anything they wish with the interest rate, and to extend the loan for as long as they want.

Example

Your intrest rate is %10, blemain say we are rasing your intrest rate to %50 your payments go up 5 times what you are paying a month, you say I cant afford to pay that much a month, they say don’t worry we will extent the time of the agrement, there is nothing in your agrement that stops blemain putting your intrest rate to a thousand % if they wanted to,and nothing to stop them extending your agrement to 100 years. This is an extream example but their terms and conditions allow it to happen.

There is another term in your agrement it can be found in a document caled mortgage conditions and it is tearn number 29.7 if you read it you will realise that your intrest rate can never come down but can go up to whatever they want.


Wp

[jumper999]

Re: Blemain Finance repossession Unfair relationship Unfair charges

Thats some mighty info there wp.....excellent. I have been reading the OFT guidelines in 2006 below and want to know if this topic could be expanded may it make a big difference or something to add against Blemain and their unfair practices?

Especially this part:

Charging for debt collection



2.9 Charges should not be levied unfairly. (Agree)



2.10 Examples of unfair practices are as follows:



�.a. claiming collection costs from a debtor in the absence of express contractual or other legal provision (Now does that mean that Blemain agreements MUST state in their contract regulated or not that they will charge a £35 fee/penalty if we go in to arrears..or default? I know Blemain always defer people to their tariff of charges, but the info the OFT has given states that it must be contained in the contract itself?)



�.b. misleading debtors into believing they are legally liable to pay collection charges when this is not the case, for example, when there is no contractual provision (Again this would coincide with the above? as Blemain do not tell a single soul prior to signing the loan or giving you funds anything about the £35 charges they would add...or did they advise anyone about this?)



�.c. not giving an indication in credit agreements of the amount of any charges payable on default ( I understand this statement that the amount of charges payable in case of default MUST be written in the loan agreements?)



�.d. applying unreasonable charges, for example, charges not based on actual and necessary costs



�.e. applying charges which are disproportionate to the main debt. (This is exactly what they do....add charge after charge after charge after charge......inflating the main debt to Mars)


Any thoughts on this from people.....and hope I have not muddied the waters by asking so many questions?

[welshperson]

Re: Blemain Finance repossession Unfair relationship Unfair charges

1. Thats some mighty info there wp.....excellent. I have been reading the OFT guidelines in 2006 below and want to know if this topic could be expanded may it make a big difference or something to add against Blemain and their unfair practices?

Especially this part:

Charging for debt collection



2.9 Charges should not be levied unfairly. (Agree)

In the case of Castaneda and Others v. Clydebank Engineering and Shipbuilding Co., Ltd. (1904) 12 SLT 498 the House of Lords held that a contractual party can only recover damages for actual or liquidated losses incurred from a breach of contract as oppose to a charge which represents a penalty. This law was confirmed and upheld in Dunlop Pneumatic Tyre Co Ltd v New Garage and Motor Co Ltd [1915] AC 79. A charge will be held to be a penalty if the sum stipulated for is extravagant and unconscionable in amount in comparison to the greatest loss that could conceivably be proved to have followed from the breach. A penalty clause is void in its entirety and unenforceable.

In addition your charges appear to represent an unfair term of contract, which is contrary to the Unfair Terms in Consumer Contracts Regulations 1999 (SI. 1999/2083). My account falls within the ambit of Regulation 5 of the Unfair Terms in Consumer Contracts Regulations1999, as we are consumers. Your charges constitute an unfair penalty under Schedule 2 of the said Regulations, which provide an indicative and non-exhaustive list of terms, which may be regarded as unfair. Under paragraph 1(e) of schedule2 this specifically includes terms, which have the object of requiring any consumer who fails his obligation to pay a disproportionately high sum in compensation.



2.10 Examples of unfair practices are as follows:



�.a. claiming collection costs from a debtor in the absence of express contractual or other legal provision (Now does that mean that Blemain agreements MUST state in their contract regulated or not that they will charge a £35 fee/penalty if we go in to arrears..or default? I know Blemain always defer people to their tariff of charges, but the info the OFT has given states that it must be contained in the contract itself?)
My agreement states how much they charge for phone and letters on the front page, if your agreement doesn’t mention charges anywhere in the agreement or in the terms and conditions then I think you are right. But I think they will have something in the agreement somewhere that says they can charge you.





�.b. misleading debtors into believing they are legally liable to pay collection charges when this is not the case, for example, when there is no contractual provision (Again this would coincide with the above? as Blemain do not tell a single soul prior to signing the loan or giving you funds anything about the £35 charges they would add...or did they advise anyone about this?)
CCA regulated agrements have charges listed on front page



�.c. not giving an indication in credit agreements of the amount of any charges payable on default ( I understand this statement that the amount of charges payable in case of default MUST be written in the loan agreements?)
I think tou have a point, but what rules or regulations say they MUST ?



�.d. applying unreasonable charges, for example, charges not based on actual and necessary costs
Look at monarch recoveries costs for phone calles and letters it shows how much they profit from their unfair charges.
2009 cost of debt collection activities for monarch is £600,000 and their profit was £9,000,000



�.e. applying charges which are disproportionate to the main debt. (This is exactly what they do....add charge after charge after charge after charge......inflating the main debt to Mars)
don’t forget insurance and legal charges added to your account just as much a scam as all the other charges.


Any thoughts on this from people.....and hope I have not muddied the waters by asking so many questions? Lots but it makes my blood presure go up so I try not to think about it to often.

[figaro123]

Re: Blemain Finance repossession Unfair relationship Unfair charges

we all learn so much from you

[welshperson]

Re: Blemain Finance repossession Unfair relationship Unfair charges

On a different point I have been looking at this
http://www.sfo.gov.uk/victims.aspx
Now this is something I think may be of interest regarding what blemain were doing by using monarch, this is something that may be worth investigating

[Celestine]

Re: Blemain Finance repossession Unfair relationship Unfair charges

If someone is happy to write a 1000 word summary of the activities of this company, I can promote it as an article on Homepage and on Twitter?

[welshperson]

Re: Blemain Finance repossession Unfair relationship Unfair charges

Thanks Celestine for your very kind offer, I think it may help a lot of people struggling with unfair practices committed by an unfair company, the more people who read about what is happening to them and know that it is unfair. Then more people will complain to the regulators, and ultimately we will see an end to unfair practices and maybe an end to sub prime lenders.


I have a lot of information on this company but even a summery would end up as big as the book war and peace.


Anyone up for writing this?


1 undisclosed commission paid to brokers

2 unfair charges

3 threatening and abusive phone calls

4 threatening letters

6 using court just to add more costs to your loan (not as a last resort)

7 using a fake debt collection company (monarch) just to add charges to your loan.

8 someone phoning you saying they work for monarch recoveries, blatant lie to defraud you of monies.

9 letters sent from monarch blatant lie just to add charges, again to defraud you of monies.

10 letters from monarch demanding you pay all the arrears within 72 hours or they will start court proceedings (no attempt at coming to an arrangement to pay and not willing to accept anything but full payment of all arrears)

11 letters from monarch recoveries saying their client (blemain) have instructed them to issue court proceedings) this is so bad as monarch were not solicitors so they cant start court proceedings, this was done to harass threaten and deceive you.

12 unfair use of an interest rate clause (in the terms and conditions)

13 unfair terms and conditions (allowing themselves the right to extent the agreement without your consent)


The above is just a quick of the top of my head response, and I am sure I have missed a few so feel free to add to the above list.

Now the real task is how to explain what has been going on in less than 1000 words

wp

[welshperson]

Re: Blemain Finance repossession Unfair relationship Unfair charges

All the letters sent by monarch recoveries that I have (quite a large pile) all have the name ( A Simon senior credit controller monarch recoveries ) have a look at the ones you have and see if they are sent using the same name ?

Now what I am trying to find out is if there is such a person ( A Simon) because if he really existed then I think he needs a bonus because he single handily made them a profit of £20 million in three years by sending out so many letters.


wp

[Blem-ished]

Re: Blemain Finance repossession Unfair relationship Unfair charges

Me too - letters from Monarch Recoveries all with the name A Simon in the signature block - but no actual signature on these letters. Google reveals that there is a Simon Ashcroft, described as Head of Collections for Blemain. Just take the first name and the first letter of the second name, and there you are, an alias. Perhaps Blemain, Henry Moser, Marc Goldberg and Adrian Grant and their chums, can post a message here to let us know? Perhaps "Mr A Simon" / Mr Simon Ashcroft would like to enlighten us as to whether we may have guessed correctly?

I note also that you can make the word "Monarch" from the letters of "Simon Ashcroft". Individuals seeking to invent an alias often use a variation of their own name. (I understand this is how fraudsters/criminals on the run are often caught by the police, interestingly).

Here is a heart warming video of Mr Ashcroft and his chums taking a light hearted break from harassing the sick, the disabled, the bereaved etc. http://www.youtube.com/watch?v=vPl5wSdJXOY

"When a felon's not engaged in his employment, or maturing his felonious little plans, his capacity for innocent enjoyment, is just as great as any honest man's"
Gilbert and Sullivan.

[welshperson]

Re: Blemain Finance repossession Unfair relationship Unfair charges

Below is taken from blemains web site and a little bit of light hearted editing in red by myself.

We are aware of a finance scam whereby a firm purporting to be Blemain Finance will ask for money up-front for unsecured loans. They also may ask that you transfer the money via the Post Office or Western Union. Note that we would not ask for money up-front and we do not provide unsecured loans.
Any individuals affected by the scam should make a report to Action Fraud; Blemain Finance is unfortunately unable to do this on their behalf. Action Fraud can be contacted on 0300 123 2040, or visit www.actionfraud.org.uk.
The Office of Fair Trading have issued a public warning regarding such scams and are advising affected individuals to contact Consumer Direct on 08454 040506 or visit www.direct.gov.uk/consumer.
If you are approached or get suspicious about the call please contact your local police and do not part with any money.



We are aware of a finance scam ( in fact we know of lots)whereby a firm purporting to be Blemain Finance will ask for money up-front for unsecured loans.(and they are robbing our customers before we get a chance ) They also may ask that you transfer the money via the Post Office or Western Union.(we only allow direct bank transfers so we get the monie quicker ) Note that we would not ask for money up-front and we do not provide unsecured loans. (we fool you into a false sense of security and then take your home)Any individuals affected by the scam should make a report to Action Fraud; ( but don’t mention how we have been scaming you )Blemain Finance is unfortunately unable to do this on their behalf. (we cant be botherd) Action Fraud can be contacted on 0300 123 2040, or visit www.actionfraud.org.uk. (but please don’t mention our scams)
The Office of Fair Trading have issued a public warning regarding such scams(but take no notice of what the OFT/FSA say about the Cheshire mortgage corporation / monarch scam ) and are advising affected individuals to contact Consumer Direct on 08454 040506 or visit www.direct.gov.uk/consumer. (but as above please don’t mention our scams )
If you are approached or get suspicious about the call (we will always be demanding money and very aggressive so if ever anyone nice speaks to you and says they are from blemain ) please contact your local police and do not part with any money.(we cant be having anyone robbing you before we get a chance)

wp

[welshperson]

Re: Blemain Finance repossession Unfair relationship Unfair charges

Blemain Finance has been established for over 35 years and was one of the first non-mainstream lenders in the UK and has substantial funds to lend.


Why dose the government allow this but shuts down rouge traders (one-man bands) ?
The harm that companies like this are doing to consumers is massive, but if for an example a builder scams mrs smith down the road he can look out.

Someone in government needs to answer this question

[jumper999]

Re: Blemain Finance repossession Unfair relationship Unfair charges

I received this email from the FSA in response to some questions I wanted to know about Blemain:



Dear Jumper,

Thank you for your email of 15 February 2013.

I understand from your further correspondence that you are asking the Financial Services Authority (FSA) about the regulatory status of Blemain Finance.

I can confirm that Blemain Finance is an appointed representative of Cheshire Mortgage Corporation Limited. This means that Cheshire Mortgage Corporation Limited is completely responsible for the regulated activities of Blemain Finance. Cheshire Mortgage Corporation Limited is directly authorised by the FSA.

If you wish to make a complaint against Blemain then you should complain to Cheshire Mortgage Corporation Limited in the manner that I described in my previous email to you. If you are unhappy with the firm's response then you can take your complaint to the Ombudsman.

However, your email indicates that your dispute relates to consumer credit. If this is the case then although the FSA regulate many activities, we do not regulate all aspects of financial services. In particular, we are not responsible for regulating consumer credit products. Most businesses that offer credit products, collect debts, advise on or negotiate debt repayment are licensed by the Office of Fair Trading (the OFT), the government body that ensures that firms are fit to hold licences.

The OFT is independent and separate from the FSA. Consequently the FSA has no influence on the activities of the OFT.

You may wish to contact the OFT to discuss your concerns via the Citizens Advice Consumer Service which has responsibility for providing consumer advice and information.

The Citizens Advice consumer service provides free, confidential and impartial advice on consumer issues. Consumers can either visit their website - www.adviceguide.org.uk or call consumer helpline on 08454 04 05 06.

If you have any future questions on financial services and products, you may find it quicker and easier to call our Consumer Helpline on 0845 606 1234 (call rates may vary).

I hope that you have found this response of assistance.


Yours sincerely

[jumper999]

Re: Blemain Finance repossession Unfair relationship Unfair charges

Hi wp, you wrote:

�.c. not giving an indication in credit agreements of the amount of any charges payable on default ( I understand this statement that the amount of charges payable in case of default MUST be written in the loan agreements?)

I think you have a point, but what rules or regulations say they MUST ?


If you read the OFT Debt Collection Guidelines 2006 you will see it is written in page 7: I believe it comes under the unfair business practices


Charging for debt collection

2.9 Charges should not be levied unfairly.

2.10 Examples of unfair practices are as follows:

a. claiming collection costs from a debtor in the absence of express contractual or other legal provision

b. misleading debtors into believing they are legally liable to pay collection charges when this is not the case, for example, when there is no contractual provision

c. not giving an indication in credit agreements of the amount of any charges payable on default

d. applying unreasonable charges, for example, charges not based on actual and necessary costs

e. applying charges which are disproportionate to the main debt.

[jumper999]

Re: Blemain Finance repossession Unfair relationship Unfair charges

If you look at Blemain's tariff of charges on the back of their letters under "OTHER FEE" & "INTEREST" it reads:

"If we apply any other fee to cover administration costs relating to your mortgage or loan with us, we will try and give you notice within a reasonable time, stating the amount of the fee, the nature of work covered by the fee, and the date on which the fee is to be added to your account. We may apply new fees to our Tariff of Charges or remove fees from it to reflect changes in the nature or cost of doing the work."

Now how many people were notified by Blemain or Monarch that would be adding a charge of £35 of x date? or did they wrote and say a charge of £35 HAS been added to your account? Looks like another unfair term and also looks like Blemain have gone against their own policies and guidelines relating to adding charges and notifying people before they did.