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Blemain fined by FSA for UNFAIR PRACTICES " at last" £1.225 million

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  • Blemain fined by FSA for UNFAIR PRACTICES " at last" £1.225 million

    Cheshire Mortgage Corporation and their Chief executive moser Fined £1.225 million Which is part of the BLEMAIN Group reported today 10/121/2012
    The FSA said about 2000 affected customers of CMC could now receive compensation
    The regulator said that Cheshire Mortgage Corporation failed to treat some of its customers fairly when they fell into arrears, was unable to always show the mortgages it sold were affordable, and did not always communicate reguarly or fully with its customers

    its investigation found that CMCL overcharged some customers in arrears and applied arrears charges inconsistently and unfairly
    The FSA said they had charged customers £150 when they transferred arrears into its Recoveries company, dispite it being in-house
    Tracy McDermott, director of enforcement and financial crime at the FSA said "CMCL@s lackluster approach to regulation combined with very poor practices in collecting arrears, meant that some customers already worried about being able to pay back their mortgages were put under undue pressure and sometimes ended up paying more than they should.
    The failings of chief executive Moser ,and director Lawton and CMCL were serious and let down a vulnerable group of consumers"

    HO HO HO Merry Christmas


    The FSA has fined mortgage lender Cheshire Mortgage Corporation Limited £1.2m for failing to treat customers fairly and fined its chief executive and compliance director.

    The regulator says Cheshire failed to treat its customers fairly in the sale of mortgages and in arrears handling from October 2004 to the end of 2009.
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    Cheshire chief executive Henry Moser has been fined £70,000 and agreed to step down from his role within six months.

    Compliance director Andrew Lawton has been fined £13,500 and banned from holding a significant influence function.

    The FSA also requires Cheshire to carry out a redress exercise that could see approximately £2m paid to around 2,000 affected customers.

    FSA director of enforcement and financial crime Tracey McDermott says: “CMCL’s lacklustre approach to regulation, combined with very poor practices in collecting arrears, meant that some customers already worried about being able to pay back their mortgages were put under undue pressure and sometimes ended up paying more than they should.”

    In a statement, Cheshire says: “Such issues pre-date a comprehensive review of the firm’s procedures and corporate governance standards.

    “We sincerely apologise to any customers that may have been affected.”

    Perception Finance managing director David Sheppard says: “This will not be the last of this type of story. A lot of other firms will be looking over their shoulder, especially if they targeted the sub-prime market.”
    Last edited by Amethyst; 20th January 2014, 08:33:AM.
    Tags: None

  • #2
    Re: Blemain fined by FSA for UNFAIR PRACTICES " at last" £1.225 million

    That is fabulous news x

    Comment


    • #3
      Re: Blemain fined by FSA for UNFAIR PRACTICES " at last" £1.225 million

      Originally posted by TUTTSI View Post
      That is fabulous news x
      Absolutely TUTTSI..............BUT they are angels compared to Swift Advances PLC ...... wish the OFT had a simialr set of BALLS.

      Sparkie

      Comment


      • #4
        Re: Blemain fined by FSA for UNFAIR PRACTICES " at last" £1.225 million

        Fantastic news let's see if this includes lancashire mortgages as well?

        Comment


        • #5
          Re: Blemain fined by FSA for UNFAIR PRACTICES " at last" £1.225 million

          I just thought i would add that the investigation & FSA action relates to pre 2010 as new rules were brought in. to ensure vulnerable customers in arrears were properly protected to include;
          Customers in arrears must be treated fairly by firms and the following key areas have been confirmed;
          • Firms must not apply a monthly arrears charge where an agreement is already in place to repay the arrears;
          • Payments by customers in financial difficulties must first be allocated to clearing the missed monthly payments, rather than to arrears charges, which can be repaid later; and
          • Firms must consider all options for borrowers. Repossessions should always be the last resort.

          A new rule has also been introduced requiring firms to record all arrears handling telephone calls and to keep the records for three years.

          So the FSA should investigate the rest of Blemain especially Lancashire Mortgage Corporation because i have proof they are not keeping to the "new" rules as i took my loan out in 2010 they are not even keeping to the old rules! in fact i don't think they know what rules are

          Comment


          • #6
            Re: Blemain fined by FSA for UNFAIR PRACTICES " at last" £1.225 million

            Magnificent news!!!!!!!!!!!!

            Comment


            • #7
              Re: Blemain fined by FSA for UNFAIR PRACTICES " at last" £1.225 million

              Reading this again explains why Blemain changed the name of its in-house receivers sterling and waterfold and moved them down the road to disguise the fact that they are "in-house" and have the same directors.


              A LEOPARD DOES NOT CHANGE ITS SPOTS!

              Comment


              • #8
                Re: Blemain fined by FSA for UNFAIR PRACTICES " at last" £1.225 million

                Fab news

                Comment


                • #9
                  Re: Blemain fined by FSA for UNFAIR PRACTICES " at last" £1.225 million

                  My mortgage with these parasites was taken out in 2005-I am looking into their actions-and i will keep you informed.

                  Comment


                  • #10
                    Re: Blemain fined by FSA for UNFAIR PRACTICES " at last" £1.225 million

                    Look here for a in depth report http://www.fsa.gov.uk/static/pubs/final/henry-moser.pdf it may throw some light on to claims against Blemain's group

                    Comment


                    • #11
                      Re: Blemain fined by FSA for UNFAIR PRACTICES " at last" £1.225 million

                      i just thought i would add this
                      Taken from the fsa website / it doesn’t say a lot but it does say they are & have been watching them.
                      The fsa say they do not take up individual complaints and I was told they look into complaints when the complaints about a company reach a certain level
                      So if you are not happy complain, do not leave it to others or the “others” may be leaving it to you!
                      Complain here its easy
                      http://www.fsa.gov.uk/consumerinform...nsumer_contact

                      From FSA website
                      Blemain Finance Limited
                      In October 2006, we obtained an undertaking from Blemain Finance Limited under the Unfair Terms in Consumer Contracts Regulations 1999. The undertaking related to how the firm calculated the level of its early repayment charge (ERC). In September 2010 the undertaking was withdrawn from our website to reflect our updated view that the ERC levied by the firm formed part of the price the borrower pays in exchange for the service of being provided with a mortgage which operates at a fixed/discounted rate of interest for a period of time. Our updated view is that it is unlikely that the level of such charges can be assessed for fairness under the Unfair Terms in Consumer Contracts Regulations 1999.
                      September 2010

                      Comment


                      • #12
                        Re: Blemain fined by FSA for UNFAIR PRACTICES " at last" £1.225 million

                        It is also worth reporting them to Data Protection there website is www.ico.gov.uk

                        Comment


                        • #13
                          Re: Blemain fined by FSA for UNFAIR PRACTICES " at last" £1.225 million

                          I just thought i would add this here although not directly naming blemain the fsa published its final guidance on incentive schemes run by lenders giving concerns over mis-selling of loans.
                          I wonder how much business blemain would do if they did'nt offer such high commissions and incentives to brokers.
                          the updated version was released on 16th Jan 2013 and can be found here

                          http://www.fsa.gov.uk/library/communication/pr/2013/004.shtml

                          Comment


                          • #14
                            Re: Blemain fined by FSA for UNFAIR PRACTICES " at last" £1.225 million

                            I am pretty sure my loan was mis sold, but the broker norton finance has gone bust so not much I can do about that

                            Comment

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