• Welcome to the LegalBeagles Consumer and Legal Forum.
    Please Register to get the most out of the forum. Registration is free and only needs a username and email address.
    REGISTER
    Please do not post your full name, reference numbers or any identifiable details on the forum.

Blemain Finance back down on reposession claim

Collapse
Loading...
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • Blemain Finance back down on reposession claim

    In February 2007 Peter Bentley took out a secured loan for £40,000 with lender Blemain Finance. However soon after taking the loan he was forced to cut his working hours from 48 to 19 to care for his father who was suffering with Alzheimers, and he began having problems making his repayments.

    The lender refused to accept lower payments on the loan and continued to chase Mr Bentley for the arrears and add interest and charges to his debt which grew to £47,000 by the time of the hearing at the High Court in Cardiff.

    Mr Bentley approached Cartel Client Review for assistance with the debt after the lender began repossession proceedings against him to secure repayment of the loan. Cartel's solicitors, CCLS, argued that the agreement was unfair and Blemain had lent the money to him irresponsibly, taking advantage of his naivety, vulnerability and desperation. "The relationship between the parties was an unfair one within the meaning of Section 140A of the 1974 Consumer Credit Act," argued Andrew Settle of the law firm.

    In negotiations prior to the hearing Blemain finance offered Mr Bentley a settlement which will be enforced by the court.

    It said that in exchange for Mr Bentley withdrawing his argument that there had been an unfair relationship under the Act, and in exchange for agreeing not to pursue that legal argument against Blemain again, the finance firm agreed:

    • to re-write the secured loan account, cutting the repayments to £150 a month

    • not to levy any interest, charges or legal costs "whatsoever."

    Blemain's repossession claim was dismissed and it was told it could not enforce repayment of the loan by this method for five years. After that, it can be enforced by repossession, but only if there are at least 12 months' arrears on the new level of payments, i.e. £1,800.

    Section 140A of the 1974 Act (as amended) provides that a court may determine that the relationship between a lender and a borrower arising out of a credit agreement (or the agreement taken with any related agreement) is unfair to the borrower because of:
    • any of the terms of the credit agreement or a related agreement
    • the way in which the lender has exercised or enforced its rights under the credit agreement or a related agreement, or
    • any other thing done (or not done) by or on behalf of the lender either before or after the making of the credit agreement or a related agreement.

    The courts have a wide range of powers where a credit relationship is found to be unfair, including:
    • altering the terms of the credit agreement or a related agreement
    • reducing the amount payable by the borrower
    • requiring the lender to refund money to the borrower
    • removing any duty placed on the borrower under the agreement , and
    • imposing requirements on the lender or an associate.

    The Office of Fair Trading: Unfair relationships - In addition to the Unfair Relationships parts of the Consumer Credit Act the OFT have issued guidance. The Office of Fair trading are also currently undertaking a consultation and investigation into second charge (secured) lending and into Irresponsible Lending - http://www.oft.gov.uk/shared_oft/con...oft1107con.pdf


    BBC News - BBC NEWS | Business | Five-year block on repossession
    Last edited by Amethyst; 30th October 2009, 09:45:AM.
    #staysafestayhome

    Any support I provide is offered without liability, if you are unsure please seek professional legal guidance.

    Received a Court Claim? Read >>>>> First Steps

  • #2
    Re: Blemain Finance back down on reposession claim

    Is blemain regulated by FSA?

    They should be next in line for the GMAC treatment (7.7 Million in refunds) but they are unlikely to be as gracious in defeat.

    IMHO:Their ruthless attitude and extortionate fee structure has no place in modern Mortgage Banking. They run their group of companies (including the debt collecting and legal side) to milk the mortgagee from the beginning to the end. In supplying the sub prime market they prey on the most desperate and vulnerable members of society who often have no option but to agree to their loaded contracts.

    Yes they inform the lenders of their charges (there is barely enough space on the back of their statements to list the charges) and if you manage to keep on target with your payments you might just get away with it. But be warned: any slip up or missed payment is pounced upon and the "charges are rigorously applied" sending the debt spiraling into oblivion.

    Thats my impression. If any one has some more positive comments i would be keen to read them.
    The charges coming in to the banking industry every day will more than pay the banks total legal bill for the whole test case so why wouldn’t the Banks want to "ensure Justice at the highest level"

    Comment


    • #3
      Re: Blemain Finance back down on reposession claim

      http://www.credittoday.co.uk/news/ne....cfm?news=1391

      Comment


      • #4
        Re: Blemain Finance back down on reposession claim

        sorry missed this post - have put a thread in mortgage section as well.

        interesting case.
        "What makes the desert beautiful is that somewhere it hides a well." - Antione de Saint Exupery

        "Always reach for the moon, if you miss you'll end up among the stars"


        Comment

        View our Terms and Conditions

        LegalBeagles Group uses cookies to enhance your browsing experience and to create a secure and effective website. By using this website, you are consenting to such use.To find out more and learn how to manage cookies please read our Cookie and Privacy Policy.

        If you would like to opt in, or out, of receiving news and marketing from LegalBeagles Group Ltd you can amend your settings at any time here.


        If you would like to cancel your registration please Contact Us. We will delete your user details on request, however, any previously posted user content will remain on the site with your username removed and 'Guest' inserted.
        Working...
        X