Swift Advances/Ocean finance

[Guest]

Re: Swift Advances/Ocean finance

Sorry , misread, I think your figures indicate an additional charge for credit, rather than a reduction in the actual credit figure don't they ?

[Guest]

Re: Swift Advances/Ocean finance

As an aside.
It would be an interesting scenario if Swift had taken over the first mortgage. As this would then fall outside the remit of the CCA as an exempt agreement. The additional finance would be regulated, but the total credit figure would therefore be wrong.

Section 18 and 127(3)

[eire13]

Re: Swift Advances/Ocean finance

ok well thanks you two for having a look much appreciated. I think I will still complain to Ocean finance as I have nothing to lose. Will update if I get a reply. Thanks.

[meellis]

Re: Swift Advances/Ocean finance

I would get as much info off of ocean and swift as possible maybe SAR them both. The way I see it is that the figures quoted are for £8000 at 1.31% a month interest (1.31x12= 15.72% a year) flat rate, £132.67 a month for 120 months. I think we could safely assume that there were costs involved in that registering a charge isn't free and I doubt whether ocean worked for free so you need to know what those costs were and how they were paid. There was maybe an upfront charge which would mean it wouldn't be part of the credit, taken out of the £8000 which would mean the balance received by yourself and the other charge wouldn't add up to £8000 or these charges haven't been accounted for and are sitting there somewhere on top of the £8000 but never actually been paid just accruing interest. Because the APR is supposed to be there so the consumer can compare the true cost of the loan after costs it is indicating that there is something there which isn't listed because it is higher than the flat rate. Because the loan is drawn out for £8000 the assumption would be that you didn't receive £8000 between you and the third party you would have received somewhere around £7660 but you would have expected some form of reference to this on the agreement.

[Guest]

Re: Swift Advances/Ocean finance

Apr is always higher than the flat rate in any case I am afraid because to the way it is calculated, irrespective of other charges for credit. It may well be that there are charges included within he interest in the TCC but it would not effect the enforceabilty of the agreement in any way

The agreement is fully compliant unfortunately. However the default charges may be challenged ,as said as may the selling if the pre contractual checks regarding affordability were not adequately made.

Of course if you can show that you did not receive £8000 in total that is a different matter.

[Guest]

Re: Swift Advances/Ocean finance

Incidentally the APR on the above agreement works out to 16.9256% as written.

The CCA charge for credit regulations 1980 and subsequent amendments allow an error of .1% below the actual value of 1% above for complete compliance..

[Guest]

Re: Swift Advances/Ocean finance

http://www.legalbeagles.info/forums/...ight=peterbard

[Guest]

Re: Swift Advances/Ocean finance

=((X^12)-1)*100

Incidentally (again) it is possible to calculate the annual APR from the monthly interest rate, as long as there are no other factors or sums included within the TCC, using the above formula, where "x" is the stated monthly APR(in the form=(xmonthy/100)+1) , you can just enter it int an Excel field if you want to play with it.

Instead of "x use the feild with the monthly APR in it. In the OPs case the calculation comes out as 16.903 %(which is near enough.

[Guest]

Re: Swift Advances/Ocean finance

Sorry to much information

[eire13]

Re: Swift Advances/Ocean finance

Well figures are not my strong point lol. Well the amount we received adds up to the £8000. Not sure if a SAR to Swift is worth it because they will probably not put in any info that will help my case. The only thing on the affordability side off the loan was that the GMAC mortgage was being paid by benefits. But also I did sign an income affordability letter. I'm not sure I have a case other than the above and also not being aware of all the fees they could add. It just seems they have an answer for everything.

[Guest]

Re: Swift Advances/Ocean finance

Well figures are not my strong point lol. Well the amount we received adds up to the £8000. Not sure if a SAR to Swift is worth it because they will probably not put in any info that will help my case. The only thing on the affordability side off the loan was that the GMAC mortgage was being paid by benefits. But also I did sign an income affordability letter. I'm not sure I have a case other than the above and also not being aware of all the fees they could add. It just seems they have an answer for everything.

I agree, however it all adds to the knowledge pool for future use, and I appreciate you taking the time to put your agreement on here.

[eire13]

Re: Swift Advances/Ocean finance

Ok and thanks to you for looking at it.

[meellis]

Re: Swift Advances/Ocean finance

Even though you believe swift won't give you much you will get some from ocean that swift should have supplied so it will always lead to the question why did swift say it is commercially sensitive if someone else supplies it without question. It still doesn't answer the question of how the costs of setting up the loan have been paid for. They added the brokers fee and legal and documentation fee to my loan, like they do most, and my loan was for over 8 times your amount. If they felt they needed to recover the costs from my loan which gave them far more margin for them to lose them in they would need to re-coup these costs from yours. The brokers fee might be a percentage but the costs of registering a charge would be the same so if they can't afford to lose them on mine then they wouldn't want to lose them on yours. If you have received all of the £8000 then my worry is that these costs are sitting somewhere accruing interest because the calculated payments only take into account £8000 not £8000 + costs.
Andy I know you are a knowledgeable bloke but can you tell me how the APR can be calculated accurately on this agreement. The APR is supposed to show the true cost of the loan after all costs and any charges in the TCC, you've said some of that and so does your link. There are no costs showing on the agreement and no visible terms and conditions that show any relevant charges so how can you show the effect of non-existent costs and charges. If you go to any loan calculator that will work out the APR it will come back the same as the flat rate because there are no costs or charges to add. It is because of these costs and charges that the APR is generally higher than the flat rate because that is the sole purpose of the APR, to show the true cost of the loan after all these things are added. I know you have shown your one size fits all equation but I cannot see how that takes into account differing amounts of costs or charges which is the true purpose of the APR.

[Guest]

Re: Swift Advances/Ocean finance

Andy I know you are a knowledgeable bloke but can you tell me how the APR can be calculated accurately on this agreement. The APR is supposed to show the true cost of the loan after all costs and any charges in the TCC, you've said some of that and so does your link. T.

The only parameters required to determine the APR are the TCC the total credit and the period/repayments. Everything else can be calculated form these. The TAP(total amount payable) is TCC + TC etc..

The apr is simply the ratio of the three values the TCC the TC and the period. The TCC is easily calculated by multiplying the payment by the number of(TAP), and subtracting the total credit.

[Guest]

Re: Swift Advances/Ocean finance

. If you go to any loan calculator that will work out the APR it will come back the same as the flat rate .

No it wont because the calculation method for determining APR is different to the one which is used to calculate flat rate interest, APR does not work the same way, it incorporates a compounding effect on the debit balance and compensates for the amounts re-payed and the period between payments, it is all in the link. The formula is quite complex although can be simplified for regular payments as I have given earlier.