chrisking1962 v Blemain finance PPI

[chrisking1962]

hi all,

just wondered how to go about claiming PPI refunds on a couple of loans which have now been redeemed. my main one is a loan which I took out with Blemain Finance less than a year before redeeming it (after a heck of a battle for a figure). Anyway, I contacted Blemain regarding the PPI and was told to contact Premier Writers in cleckheaton for a refund. Now the PPI was for £2200 ish paid up front on the loan at the start, the loan was taken out in April 2006 and redeemed fully with the PPI figure added to the redemption figure 'pay the whole amount or we will not release the charge' was the last words spoken to both myself AND my solicitor, (remortgage needed to complete). I have since been advised by Premier Writers that I will receive a refund of less than 50% I was hoping very much to recieve at least 65% or more as the loan itself did not run for 12 months out of a 20 year loan time!

Is there any specific calculations that tha FSA would use as I would like to get some more if not the whole amount of the PPI back with interest, as Blemain are NOT the most helpful or friendliest of inhumane beings I would like to speak to.

I would apreciate as much help as possible as I have also had loans with Black Horse, which I am trying to get funds back from 2 different figures received on a redeemed loan and with Welcome etc.

[reidnet]

Hi,

I have posted some info on PPI ingeneral which may be of some help.

 

http://www.consumeractiongroup.co.uk/forum/ppi/61081-ppi-some-notes-claimants.html

 

Ian

[chrisking1962]

cheers for that Ian,

i'll have a good look at it later.

in a nutshell, loan for £14.5k taken in april 2006, £2200 ish for PPI added, redemption figure paid £19150ish or no release of charge. Paid for obvious reasons.

Contacted Premier Writers for refund, told to wait approx 21 working days, chased up early this week, due refund (ish) soon NO figure given when questioned regarding approx amount and played subtle guess the refund figure was told will be below 50%, will hopefully get whatever refund, bank it but not accept as final offer, any advice as to what to write as the templates are requesting as if no refund offered. Sorry to be a pain, but the banks charges side of things I sort of am ahead with, but this is a bit different.

Regards

Chris

[hellhasnofury]

cheers for that Ian,

i'll have a good look at it later.

in a nutshell, loan for £14.5k taken in april 2006, £2200 ish for PPI added, redemption figure paid £19150ish or no release of charge. Paid for obvious reasons.

Contacted Premier Writers for refund, told to wait approx 21 working days, chased up early this week, due refund (ish) soon NO figure given when questioned regarding approx amount and played subtle guess the refund figure was told will be below 50%, will hopefully get whatever refund, bank it but not accept as final offer, any advice as to what to write as the templates are requesting as if no refund offered. Sorry to be a pain, but the banks charges side of things I sort of am ahead with, but this is a bit different.

Regards

Chris

 

Hello Chris,

 

read your post with interest. I find it hard to believe that you only paid 2200ish ppi on a 14,000 loan. Have you calculated how much interest from the ppi you paid.

 

Have you received a breakdown of the loan, interest, ppi, interest and erpc charges. Did you get a S.A.R - (Subject Access Request)?

 

I am sure that I have read something on the site about the erpc and ppi refunds.

 

Maybe dicuss you situation with the fsa and maybe they can advise as to the new legislation that has just been released earlier in the year.

 

oft

Office of Fair Trading - making markets work well for consumers

0845 722 4499

 

FLA

Financial and Leasing Association

FLA

Imperial House,

15-19 Kingsway

London

WC2B 6UN

Tel 020 7836 6511

 

FSA

 

Financial Services Authority

 

 

As for reclaiming but mis-sold ppi, it is basically the same process as reclaiming back penalty charges from the bank, although they do fight back harder:-x

 

Good luck and keep us posted

[chrisking1962]

Hi Sandbro,

No I havent calculated any interest I may have paid due to it being less than 12 months old, I did'nt receive a breakdown of the loan apart from the redemption figure which had a loan value, less any rebate due plus any charges I had acrued since having the loan. I had to ask why the loan I took out was almost £5k more on the redemption than on the application at which Blemain stated there was the PPI @ £2200ish and some other things (Which I intend to claim back when the dust as settled). But my main gripe is that when I took the loan out through Promise Finance (don't go there, desperate times mean desperate measures I KNOW!!!!) the NICE gentleman explained that should I redeem the loan before its end date (20 years) then I would only have to pay 1 months interest above the loan value £14.5k as I was aware of new regulations which had come into force through the FSA. Somebody lied there did'nt they, Promise huh, promises broken if you ask me.

Anyway sorry for drifting, back to answering your other questions, no I have'nt sent an SAR as I need to claw whatever back 1st before persuing for more, and I will send an SAR later, just not yet as I could do with the financial bit 1st. as for erpc? I don't know what that is ( I'm still learning the short texts of things) I will get back to you with a breakdown from Blemain on the redemption figure I have recieved from my solicitor whom I must admit was extremely helpful during the redemption fight, beleive you and me we both received verbal earbashings from the company with the threat to them not releasing the charge if I did not settle the full amount AND I was even told they would go for reposession of the property, but that is another twist in the tail, just glad to be rid although I don'nt think this is over by a long chalk!!!

This was supposed to be a quick reply, but I'm now on a couple of missions.

I'm already taking on Abbey (LBA sent 4/5/07)), Nationwide & Yorks Bank (SAR's sent 27/4/07) and to top that I also wish to persue Welcome, Black horse (2 loans) Leeds & Holebeck BS (mortgage) and GMAC (Mortgage) for charges All redeemed.

So I'm gonna be extremley busy over the next few months, just waiting 1 tel call from Black Horse regarding different figures on default notice and redeemed loan within 6 days of default, had I paid the default notice I would have been naearly £800 better off, and because Black Horse KNEW I was about to settle the loan the redemption figure was different. by nearly £800, I have requested the difference or atleast a very reasonable offer otherwise I will go for the SAR and persue them in a similar manner as I am persuing the banks, we will have to wait and see.

I keep looking at the forums and find there are a heck of a lot more victories going on than losses I just hope I am not the 1st to change the trend.

keep you posted

regards

chris

[dax]

Hi Chrisking..it was inevitable that Blemain would show their face again. Ive been trying to tackle them for a year and got nowhere fast. Their calculations are un lawfull and how they behave is a disgrace. Keep us updated with how you progress, there's a few of us here wanting our money back. How much was the interest charged on your loans?

[chrisking1962]

hi dax,

got my reply fromthe company who supplied the PPI (Premier Writers) and when I was progressing the refund was informed by them that they (PREMIER WRITERS) would be forwrding the rebate direct to myself when they had done all the calculations. Got another letter beginning of this week saying that they had worked out the rebate due (which was just over 25%) and that this had been forwrded to Blemain who would then forwrd the cheque on to me which will now delay my cheque for banking by atleast another 10 days as this is the usual tactic they have when paying out. I wonder if I can charge them the typical £117.50 for the default/late payment charge and the £30 telephone charge to chase up the cheque/monies I was owed as they would charge me these if I sent my payment later than the due date as they have charged in the past!!!!

As for the interest I couldnt tell you as the redemption figure reads this (please bear in mind this was a £14,500.00 loan over 20 yrs + £2210.00 PPI):

amount outstanding under the agreement: £39,031.23.

less rebate calc in accordence to consumer credit early settlement -£21,178.15.

redmeption Admin fee £395.00

Additional Interest £62.51

Collections Costs £822.50

total settlement figure £19,133.09

And that was with a reduction in the collection costs, plus if I did not pay the full amount they would NOT relase the charge.

Well once the cheque owed is banked and cleared I intend to go for them for the SAR and see them in court for the treatment both my solicitor received on the telephone and myself.

wish me luck, because this company is probably the worst loan company I have ever had the misfortune to be associated with.

I don't think I would have got any PPI rebate out of the blue if they had'nt given me the name of the ins company.

regards

chris

[hellhasnofury]

hi dax,

got my reply fromthe company who supplied the PPI (Premier Writers) and when I was progressing the refund was informed by them that they (PREMIER WRITERS) would be forwrding the rebate direct to myself when they had done all the calculations. Got another letter beginning of this week saying that they had worked out the rebate due (which was just over 25%) and that this had been forwrded to Blemain who would then forwrd the cheque on to me which will now delay my cheque for banking by atleast another 10 days as this is the usual tactic they have when paying out. I wonder if I can charge them the typical £117.50 for the default/late payment charge and the £30 telephone charge to chase up the cheque/monies I was owed as they would charge me these if I sent my payment later than the due date as they have charged in the past!!!!

As for the interest I couldnt tell you as the redemption figure reads this (please bear in mind this was a £14,500.00 loan over 20 yrs + £2210.00 PPI):

amount outstanding under the agreement: £39,031.23.

less rebate calc in accordence to consumer credit early settlement -£21,178.15.

redmeption Admin fee £395.00

Additional Interest £62.51

Collections Costs £822.50

total settlement figure £19,133.09

And that was with a reduction in the collection costs, plus if I did not pay the full amount they would NOT relase the charge.

Well once the cheque owed is banked and cleared I intend to go for them for the S.A.R - (Subject Access Request) and see them in court for the treatment both my solicitor received on the telephone and myself.

wish me luck, because this company is probably the worst loan company I have ever had the misfortune to be associated with.

I don't think I would have got any PPI rebate out of the blue if they had'nt given me the name of the ins company.

regards

chris

 

Hello Chris,

 

They are terrible and not at all helpful. If they are that bad, they may not co-operate with your SAR and default,

 

Please read this thread, just incase they dont comply

 

 

 

 

Germany2006

 

Makes interesting reading:lol:

[chrisking1962]

hi hellhasnofury,

I started reading the Germany 2006 thread, but my eyes have gone all blurry and I'm only on page 2 of it. what has really peed me off is the fact that the insurance company told me they would be sending the rebate direct to me NOT Blemain, as far as I am concerned I have finished with my dealings with Blemain, and would like to go for Promise Finance on some sort of claim for misselling of the original loan. How can you stae that 'should you redeem the loan early then the new regulations laid down by the FSA are that the maximum the loan company can charge you for early redemption would be 1 Months interest' in my case a cost of £185.00, so as I see it, £14,500.00 + £185 = £14,685.00 (plus the PPI on top) which still only = £16895.00 NOT £19,133.09.!!!!!!!!!! How the hell do they work that out, and can I claim the misselling of the original loan on the grounds of misguidance/misrepresentation from the salesrep from Promise??? I could do with some legal guidance on this one, as I wouldnt know what FSA section/pargraph/jargon/subsection act, etc to quote regarding making them sit up and take note.

If anybody knows of these things let me know as the Mirror are interested in my progress.

regards

chris

[dax]

How interesting that the Mirror are interested in your progress. Can we know why and how they are involved. It seems that everyone who has ever had dealings with Blemain finance, are stuck in the same dilemma of 'how did they work it out' and there are a few of us in here with that in common.

 

I personally repaid them £6917.31 on a £5000 loan, £19665.06 on a £15000 loan and £24776.62 on a 19.000 loan, totalling £51412.99 in total repaid in one lump. Anything anyone can find out with this outfit, the better.

 

 

I'm still not sure how you ended up having recourse with an insurance company, am I missing something or just dumb? I mean should we be therefore be chasing the insurance company for the answers instead of Blemain.

[dax]

You see it sounds that theyve used that rule of 78 in your calculation as well as mine.

[dax]

This is the FSA report findings about Blemain:

 

 

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Blemain Finance Ltd

 

A term in Blemain's repayment mortgage contract said if a customer repaid their mortgage early, the firm would calculate the early repayment charge using a formula known as the 'Rule of 78'.

 

 

 

Why did we think it was unfair?

 

 

 

 

Because it could result in the customer paying a charge much higher than would reasonably compensate the firm for charges lost through early repayment.

 

 

 

What has the firm done?

 

 

 

 

They advised us that consumer mortgage contracts entered into since January 1998 have not contained the term.

 

For mortgages entered into before 1998, Blemain advised us they use both the Rule of 78 and a different method to calculate the charge, with the customer paying the lower of the two.

 

 

 

Other information

 

 

 

 

Blemain provided us with documentation confirming they gave the Office of Fair Trading an informal assurance they would stop using the term in November 1997. This agreement formally adds to that assurance.

 

They also advised us that by 31 December 2005 they had written to all non-commercial customers with contracts containing the term to tell them how they calculated settlement of those mortgages – as described above.

 

If any of Blemain's customers still have concerns about a mortgage contract containing the term they should get in touch with the firm who will be happy to consider the matter further.

 

 

 

Old term

 

 

 

 

The Borrower may at any time repay the whole of the Principal Sum outstanding but in the event that such repayment shall take place prior to the expiration of the Repayment Period whether at the request of the Borrower or following exercise of the Lender's power of sale the Borrower shall pay the total sum of Principal and Interest calculated in accordance with the formula (known as the Rule of 78) an illustration of which is set out in the Schedule hereto. In addition the Lender shall be entitled but not required to add to the resultant figure an amount equal to six months interest or such lesser figure as may be lawfully permitted for such cases as where a variation of the Rate has been made in accordance with Clause 3 hereof and in such cases for the purposes of calculating the said figure in accordance with said formula the rate of interest shall be deemed to be the Rate as if no variation in accordance with Clause 3 hereof had been made.

 

 

 

 

 

 

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Read more agreements from firms – see Unfair contracts.

 

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[dax]

sorry that came out long after pasting....

[dax]

I'm sooo drained by Blemain, and like you I feel I need legal advise before tackling them in a Court as they are used to loopholes in the law and clearly have no concern for their customers.

[dax]

this might help chris also from an oldpost of mine:

 

found this already on the forum ......

 

If your secured loan is governed by CCA 1974 then s.95 (1) entitles you to a rebate of charges to credit.

http://www.passprotect.studio400/ .me.uk/Consumer_Credit_Act_1974. PDF

The Consumer Credit (settlement Information) Regulations 1983 requires the creditor to give a statement of amount required to pay off the loan and how this was calculated. The Consumer Credit (Early Settlement) Regulations 2004 (see link below) regulates the calculations and these cannot be contracted out of to the detriment of the consumer (s.173(1) CCA). So an ERC would be classed contracting out of the Regulations to the detriment of the consumer. These Regulations only apply to loan agreements taken out since 31st May 2005:

The Consumer Credit (Early Settlement) Regulations 2004

 

If your loan was pre May 2005 the Consumer Credit (Rebate on Early Settlement) Regulations 1983 apply which contain the rule 78 which provides that creditors can charge upto six months interest on redemption. Anything over the 6 months interest would be regarded as a penalty and unenforceable..

 

However..Blemain Finance gave the Office Of Fair trading assurance in November 1997 that it would no longer use the rule of 78 when redeeming.

[midge61]

Hi

I have had a quick look at my loan agreement with them and there is a list of financial bodies that they belong to at the bottom so I will go and look it out and then post the names for you incase this can help in any way.

I am tied to them for another 5 years and have no hope of raising the funds to repay early but am keen to follow your battles and help if i can

Midge

[midge61]

Right got it.

Consumer credit licence 032328 issued by OFT

Members of CCTA Consumers Credit Trade Association @ Suite 8 The Wood exchange, 10 Hustlergate, Bradford BP1 1RE who apparently offer abbitration sevices if disputes fail to be resolved.

 

My agreement states for early repayment:(loan taken out Mar 2006)

per £100 of origional loan amount

after 24 mths £94.08

after 48mths £71.95

After 72mts £42.19

Hope this helps

Midge

[midge61]

Me again

might be worth looking at the new consumer credit act 2006

Midge

[dax]

Well done Midge..every bit helps. we have the B word in common with eachother, after all..

[midge61]

HI

Have had a look at Blemains website and they are now members of FISA and signed to their code of conduct.

Welcome to the corporate home of FISA

But have looked at their code of conduct and it looks like a lot of hot air to me but most of the bad lenders seem to be members lol.

Midge

[dax]

It is Midge, ive seen it before, but I still intend to write to FISA and point out all the conduct they dont conduct as what as what they really do..

[midge61]

just found this on the FISA website

early settlement of loans regulated by consumer credit act 1974

gives the formular that they use

http://www.fisa.co.uk/downloads/Early%20Settlement%202004%205.pdf

have read it but its way beyond me!

[chrisking1962]

wow you lot are running with this, I'm still on my last post and the post from Dax (thanks for the links) especially the bit about "If any of Blemain's customers still have concerns about a mortgage contract containing the term they should get in touch with the firm who will be happy to consider the matter further".

Although this is in the FOS sight, do they really expect Blemain to roll over and give me or you the calculations they have used without us blowing a fuse in our heads as to how it works? and going all googoo?

The way I was spoken to, and my solicitor acting on behalf of my remotgage company from Blemain borders on aggresive bullying tactics and should this have been an employer they would have been hung, drawn and quartered by the tribunal industry!!!!

Anyway I will sit down and have a very good read regarding the germany 2006 thread and the other threads and links regarding the similarities of the loan companies in general and their collective missguidance and harsh tactics they use to push you into the corner like a scared animal then its stand up and fight for your survival (if that's the right terminology).

I'll make my follow up call to blemain tommorrow to ask when they are sending me my rebate from Premier Writers, I'll phone the collections department and ask to be transfered through to the redemption dept, that always gets them thinking!!!!!

tee hee hee.

regards

Chris

[midge61]

Have just had a quick look through the new consumer credit act and there is plenty in there that may be of help ..........but I dont know if it applies to old loans

Midge

[chrisking1962]

Hi Midge,

the loan was less than 12 months old, and was taken out in April 2006, this is what is bugging me about the extra £3k nearly, after the loan was taken out under the impression that early redemption only carried a 1 month interest premium!! as it was stated by Promise Finance.

I will keep you all informed, and to answer the Mirror interest question, I read an article in the Your Money section which covered a story of a Birmingham Midshares customer who managed to reclaim all his charges on his loan after he was hit with charges left right and centre, through illness, So after reading the article it prompted me to go for Blemain and if successful challange all my old accounts regarding mortgages and various loans (both secured and unsecured)I have had with Welcome, Black Horse,First nasty,Leeds & holebeck,and GMAC that I can think of off the top of my head (not much hair left there! LOL) and neadless to say they have asked me to let them know how I progress.

it feels good to have such support from fellow struggelers (spellcheck for that one)

Speak to you soon

regards

chris