Blemain Agreement Has gaps not filled in!

[magiciansgirl]

Hi, if you are successful in remortgaging and redeeming the loan then you need to look at what their charges are; I got a redemption quote in 2007 and it was astronomical. With a bit of digging I have worked out what the right amount should have been. They charge for late payments, phone calls and letters as well as an early repayment charge, and if you haven't got 'their interest' noted on your buildings insurance policy they will charge you for insurance as well (Stanmore Insurance). There are other threads recommending that when you get the redemption quote you take it to either the CAB or a Trading Standards office to get them to check the calculation. I shall be doing that if I can remortgage and get shot of them. As you didn't (I don't think) use a broker then you shouldn't have a broker fee included but that doesn't stop them and Midge61 had a broker fee added though he dealt directly. Good luck and let us know how it's going.

[cupcake68]

Thanks for that info. We were quoted 6 months interest as early repayment penalty, we have never paid late or spoken to them on the phone and we did have them named on our insurance so if they dare to charge me any more than 6 months interest I will not be a happy bunny.

 

Am I right in saying that the opinion on here is that they must be enforceable because they aren't regulated? I would really like confirmation of this before we pay it off (if we ever get the mortgage offer we're waiting for! - supposed to be sorted last week but still waiting!!).

 

Having read so much on here about them they seem like sharks and I can't believe they can get away with behaving like this!

[magiciansgirl]

Hi, I don't really understand the unregulated thing but have been told by Blemain themselves that mine is one of those.

 

I've just remembered that on the reverse side of a letter they sent me last month chasing payment (which was not late - their error) there is a complete list of all their charges from August 2008. Would it be helpful to you to have this? If so I will attempt to find a scanner... then at least if they swing charges on you you'll have a better idea of what they might be.

 

I couldn't work out what they based my early repayment charge on at all; it wasn't six months' interest and there's nothing saying that's what they want in my contract. However it is worth you insisting on absolute transparency when the time comes. What you really need to be careful about is that they don't use what is called the rule of 78 when calculating. There is info about that elsewhere on this site. Good luck with your mortgage.

[midge61]

Hi

 

They are NOT allowed to use rule78 anymore, they gave an undertaking to the FSA in 2005 I think. I will try to find it in a bit.

 

If there is no erc on the loan then I thought that they were only meant to charge 1 months extra interest and the month in which you are redeeming.

 

Perhaps Consumer Direct could tell you but when you do get your redemption figure I would take it to CAB to get it checked out.

[midge61]

Here you go

 

 

http://www.fsa.gov.uk/pubs/other/undertaking_blemain.pdf

[magiciansgirl]

Thanks for sending that link Midge, I knew it was around somewhere but I'm only learning how to use forums at the mo and only cracked searching today!

 

The more I dig up about Blemain the more I fume.... I just can't believe the brokers could have recommended them. Have got an SAR in with the brokers now; I originally sent one last September, recorded delivery, no reply, chased again recorded delivery. The £10 cheque hadn't been cashed... then got a letter saying 'request not received, try again'. So I have, and this time I've sent it Special Delivery. Uugh..

[cupcake68]

Thanks for all this info.

 

I am posting my agreement on here (by the suggestion of another member).

 

I'm hoping someone on here will look at it for me to see if all is ok.

Edited February 21, 2009 by esile172

[frettful38]

These images are too small to see you should try using photobucket

[cupcake68]

Sorry!

 

Is this better?

 

Edited May 4, 2010 by cupcake68

[frettful38]

That is much better, its quite similar to my agreement.

 

http://i450.photobucket.com/albums/qq223/sophiak_bucket/barristers%20advice/agreement1.jpg

http://i450.photobucket.com/albums/qq223/sophiak_bucket/barristers%20advice/agreement3.jpg

http://i450.photobucket.com/albums/qq223/sophiak_bucket/barristers%20advice/agreement4.jpg

http://i450.photobucket.com/albums/qq223/sophiak_bucket/barristers%20advice/agreement5.jpg

http://i450.photobucket.com/albums/qq223/sophiak_bucket/barristers%20advice/agreemant2.jpg

[frettful38]

Hopefully micko19 and others will be able to have a look and give some advice, we just have to sit and wait now

[cupcake68]

So I think the questions we need to ask are

1. Freedom who sold me the loan should have given me key facts sheet on the loan (as I never had one).

2.Can Blemain charge me interest on their charges? (not sure if they are)

3. Do I have any protection when they are not regulated?

4. I thought it was an interest only loan but the monthly amount appears to show it as a repayment loan yet I cannot find any mention of what kind of loan it is. Should it state the kind of loan?

5. The title of the loan document says "This agreement sets out below and overleaf the terms on which we, Blemain Finance Ltd of Bracken House, Charles Street, Manchester M1 7BD (the Lender) MAY make a loan to you the (Borrower(s)"

6. Are they allowed to charge that much in early repayment charges?

 

 

Can you think of anything else?

[frettful38]

Well my agreement says all of the above too, and I think it is best if we find a solicitor to look at these agreements, they will be in a better position to advise us.

Have you sent a Subject Access Request to your broker whom I assume is Freedom?

[cupcake68]

No I am a bit scared to because I don't want to upset Blemain! I have nothing from freedom except for a couple of covering letters!

[frettful38]

Why don't you send Freedom a Subject Access Request

[cupcake68]

Will they inform Blemain?

[frettful38]

You can send one to Blemain and one to Freedom

[cupcake68]

Will that not encourage Blemain to be awkward?! I don't want to cause trouble unless I know I have been wronged!

[midge61]

A sar is your legal request for all info held on you by the firm and they HAVE to comply with the request.

 

They will be awkward about giving you all the info but that is as far as they can go. If you are making payments then they have no reason to do anything against you.

 

I too would like to know how we can win against them and who is there to help against these unregulated firms.

[cupcake68]

Hi Midge61

 

I would love to challenge this agreement. Not because I don't want to pay it but because I feel we were not advised properly about their conditions.

 

Unfortunately I have a lot on my plate at the moment (see other threads) and do not want to rock the boat with Blemain. I have read some very nasty things about their behaviour. I hate to sound like I have been scared off but for now I have!

 

I am keeping a keen eye on any information I can about others with these sharks though.

 

Good luck!