Blemain Finance 2nd Charge Loan Via freedom finance

[cupcake68]

Does anybody have any information on freedom finance?

 

I took out a loan through them that doesn't seem quite right to me and I wondered if anyone knows anything about them or if they are regulated etc?

 

We took out the loan as a last resort for a business development which we thought would solve all our problems and be paid back within 6 months. That was more than a year ago. I am now trying to remortgage to get rid of this loan and the more I read the worse this company gets.

 

Not Freedom but the loan company they advised us on.

 

Do we have any protection/comeback with freedom?

 

Thanks

[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!

[cupcake68]

Any information greatly received!

[manchester1]

Esile , you need to tell the forum the specifics and what do you think is not right about the loan:confused:

 

Manc1

[cupcake68]

Hi Manchester1

We took out a 2nd charge on our property through freedom finance in Dec 07. The loan was from Blemain finance. It was for 138k. We intended it to be for 6 months whilst we took on a business development, then we intended to pay it back (along with the 6 month int as early repayment fees). Unfortunately things didn't go to plan and we still have the loan. It's interest rate is 12.10%pa. We are currently trying to remortgage to pay them off but it's all getting pretty hairy!

Whilst worrying constantly about how we are going to get out of our mess I have been reading the small print of their loan and have scared myself rigid. Also having read on this site about Blemain I am even more scared.

I have posted a thread about it http://www.consumeractiongroup.co.uk...as-gaps-3.html

but I'm not really getting the answers I would like.

 

Basically I would like to know if

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?

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)"

 

It does not say they have given a loan it says they MAY give us a loan

6. Do they have to send us a statement every year? (we haven't received one as yet)

[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!

[cupcake68]

I have a second charge on my property with a sub prime lender.

 

Took it out as a short term plan which is now a long term noose around my neck!!

 

Having hit hard times we have had to find a way of getting out of a very big financial mess.

 

This has resulted in my father (who lived in a detached annex on our property) moving in with us. We have since redecorated the annex and are now advertising it for holiday lets. (We do have permission from the planning authority to do this!)

 

Having got our 1st booking this week we called to arrange insurance for the holiday let part of the property including legal cover etc.

 

We were informed we had to let our existing insurance co know that we had taken out this sep cover.

 

Having told our existing ins co today they have informed me we can no longer be covered for our main residence as we are running a business from the address.

 

This has highlighted a cople of problems to us.

 

The main one being the sub prime loan!!

 

In their terms and conditions it states

 

The Mortgagor further charges to the Lender by way of equitable mortgage (a) all equitable interests in the Property which now or may at any time in the future belong to him (b) any shares or membership rights which the Mortgagor holds in any company or association connected with the Property and © the goodwill of the Mortgagor relating to the business carried on at the Property, in each case with the payment of the Liabilities (but without prejudice to the validity of the legal charge on any legal estate or interest).

 

Can anyone tell me what that means in simple terms (I am simple!!)

 

Your help would really be appreciated.

 

Thanks

 

CC68