Swift Advances - Unregulated Agreement?

devils_spawn

This is on behalf of a very good friend of mine who has only just come clean about his finances.
This is for a loan based in Scotland.
He got into some financial difficulties and went to Ocean Finance who referred him to a company called 'Swift Advances'. With this, they have an unregulated credit agreement for a secured loan at a value of £55000.
A monthly variable rate of 1.17% which, is the same as a mortgage rate of 13.98%.
It was set up that they would make 144 variable monthly payments until the debt is cleared (strangely this variable rate has never come down!). He also had to pay a 'Title Insurance Premium' of £150 which he doesn't know what that was for.
This will all signed and agreed on 18th Oct 2004.
Back in May 2007, they asked for an early repayment quote and were told it would be £62000 despite them having already paid in excess of £28000 towards the original loan. He disputed this under the terms of the 1974 CCA but was told this did not cover his agreement as he signed to an unregulated agreement (he was told this on 14th May 2007)
Back on 31st May 2009 they received a reply from Swift Advances saying that their charges do not constitute a penalty under common law and they believe they satisfy the test of fairness under the Unfair Terms in Consumer Contracts Regulations 1999 ("UTCCRs")
The arrears charge is £23 Admin Fees of £33, fees for using a Scottish Solicitor.
Up until 31st May 2007 (The most recent statement) they have paid
Arrears letters & Calls £253
7 bounced payment charges £231
Information to & from prior mortgagee £117
Other letter charges £ 12
Default Charge on 09/12/04 £990
Default Charge on 09/05/06 £110
Post default collection costs £1635
Litigation fees £1222.04
Scottish solicitors fees £384.08
So in total so far it's at £4954.12 and he's told me that has practically tripled in the past 2 years.
I now believe that the FSA or OFT decided that all agreements, even those before 2006 are subject to the unfair contract terms & conditions, even if it is an unregulated agreement?
Is that the case and if so, how do you suggest my friend to proceed?
I'm happy to help and do his PPI and Charges claims from other accounts but am not sure how to approach this one.
I will however still write to them and ask for a signed copy of the CCA and pay the £10 DPA for a full statement since the account started on Oct 04. But since there is a 'legal charge' on the property and it's unregulated - just how do I approach it and as for the APR, surely there must be some way of bringing that down or challenging the amount they have paid to get a much lower settlement figure?
They have never been given a copy of the fees and charges for the account - I want to claim back as much as possible for this friend, even though it's a secured loan, would it matter if they couldn't provide a CCA or are our hands tied?

devils_spawn

Bump - Can anyone help?

Should I just try to get their costs back or is there more I can do for them?

~Brock~

Some of the substantial fees appear to be solicitors or litigation fees. I don't see how you can claim these back if they are backed up by invoices in to the lender for the money they have had to spend on external services. They are, by definition, an actual 'cost'.

The replacement of the old 'extortionate credit bargain' rules with the 'unfair relationship' rules are still part of the consumer credit act, and therefore will not extend to unregulated agreements.

devils_spawn

The litigation fees I can see as being reasonable - most others I can't, I mean £990 for ONE default?!

And according to the info I have found, they CAN be challenged under the new rules since the law was changed in 2006.

I just want to know what people think the best approach is?

talkytalk

How long ago was this taken out just out of interest ?....Do you realise that Swift pay the broker a backhand commission too or procuration fee as it is sometimes known.....the fees/charges are excessive. There is a Swift section on CAg too..

morgan-lewis

Just read your post. Two years down the line. I have same probs with them. I have been to FSO and FSA. They have told me that I must go to Finance and leasing which I am in the process of doing.
I am also trying to ge back PPI as you said, only for five years, I understood that I had purchased a cover for term of loan. Borrowed 20k in 2002, paid back 24k to date. Loan was for 240 months but they say that I will have 10 years added on to it when I finish the loan at retiremment age because I was in arrears by just 7 days due to a change in payment methods. I decided to pay by internet transfer so that I had the control and not them.
Asked for a redemption figure last year and it was 48k.
I feel that they are sharks who want your property and when I retire I wont be able to pay the £305 per month. I did get the alleged arrears letter charges for 12 non existent letters and the alledged times they wrote to my main mortgage provide, who since comfirmed that they did not receive 14 letters back from them.
They are so corrupt its untrue. As far as I can see a pre regulation loan is dodgy and as such the FSA and FSO should get to grips with them. Like you I only statred receiving statements in 2008 because they were then obliged to send them. I paid £305 every month and only £5 was coming of the loan. Anyone who can shed light on this companies darkness? I would appreciate the support.:eek: