Blemain Finance Unfair Charges & Redemption Figure

[Peterbard]

Hi

Yes this is the calculator i was going to post.

If the loan was under 25k it will be regulated under the CCA 1974 in any case, so the calculator is valid, if you want me to help work the figures out let me know, you can PM me and we will do it on the thread,

 

THe new provisions which replaced the rule of section 78 came into force under this regulation

 

http://www.legislation.gov.uk/uksi/2004/1483/regulation/10/made

 

Savings

 

10.—(1) The Regulations referred to in regulation 8 continue to apply, in place of regulations 1-7 of these Regulations, and the amendments in regulation 9 do not apply, in the case of a regulated consumer credit agreement entered into before the date on which these Regulations come into force—

 

(a)until 31st May 2007, if the agreement is for a term of 10 years or less;

 

(b)until 31st May 2010, if the agreement is for a term of more than 10 years.

 

(2) For the purposes of paragraph (1), the term of an agreement is the term originally provided for, or, in the case where the term was varied before the date on which these Regulations are made, the term provided for on that date.

[Peterbard]

Yes it depends on the length of time your agreement was taken out over, if it was taken over 10 years then they should be using the new method of calculation if it was settled in 2008, if it was under ten years then they can use the old (1983/1553) rule of 78 regs.

 

This was a regulated agreement (as it was for under 25K) so may be worth checking out the T and Cs for any errors.

[Peterbard]

Hi Ruby

 

The larger loan taken out in 2004 would have been calculated using RO 78,

shame if you had waited to may the following year it would have been the actuarial method

and saved you a few bob.

 

 

There are rule of 78 calculators o the web or I can work it out for you if you like.

 

The later one should have had its settlement calculated under the latre actuarial method,

the calculator above can be used for this or again if you are unsure I can do this for you as well.

 

Both agreements should be regulated, the charges they can charge a largely down to the contract,

unless they can be shown to be unfair. perhap a squint at the agreement may help here.

 

DB

[Peterbard]

The APR works out as 18.9 % on those figures ?

 

total credit= 5153. 300 months. repayments 73.53

[Peterbard]

That's worse, those charges should be in the TCC anyway, are the repayments and term correct ? Is this agreement on here ?