Blemain Together - Hell!

Gaz83

There's not enough info to go on here, but to give you an idea:

A £10,000 loan taken out at an APR of 16.7% 13 years ago would now stand £74,459 before fees and charges, assuming no payments had been made.

Obviously I've no idea how many payments were missed, and when, but the figures you quote are not outrageous and could be entirely correct depending on when payments were missed and how many.

TrickyDicky101

onesixfive wrote: »

I am looking at the original JOINT
agreement for the £10k it shows:
The initial interest was APR16.7% & 164.85 month
PPI @ £1543 was APR15.4% £24.33 month
all 120 months
£200 brokers fee, £255 lenders arrangement fee
Interest charge 10,704.84
Total charge for credit 11,158.84

apparently numerous missed/late payments which have accumulated £6875 chrges and £2561costs !to date.

£24.33 paid monthly for a term of 120 months equates to a total premium cost of £1543 at an APR of 15.4% so it looks to me like it was single premium.

You would need to find the original policy documents to see the full details but on the face of it it doesn't look to me like it should have been cancelled in 2009 (just possibly the term was only 3 years? Dunno - check the original docs).

Bermonia

In essence your relative was sold a single premium PPI policy on a secured loan - with these sub prime lenders the PPI would only have covered for first 3 or 5 yrs depending on lender (as policy ended before party passed away there is no chance of successful claim against life element of policy) - therefore complain to FSCS who will review the mis-sale of PPI, fortunately due to the limited period of cover the policy provided these are generally accept to be a very poor practice as there is little ‘transfer of risk’ as such FSCS will likely uphold and refund.

Although lender has security over the property this will be in the form of a second charge, as such they are not the priority debt, focus on the mortgage and council tax arrears as these will likely cause bigger issues.

Definitely speak with CAB as soon as possible, although lender may not seem interested in the financial difficulties that your relative is facing they still have various obligations they must meet and therefore act sympathetically to their needs (within reason).

Hope this helps.

onesixfive

Bermonia wrote: »

In essence your relative was sold a single premium PPI policy on a secured loan - with these sub prime lenders the PPI would only have covered for first 3 or 5 yrs depending on lender (as policy ended before party passed away there is no chance of successful claim against life element of policy) - therefore complain to FSCS who will review the mis-sale of PPI, fortunately due to the limited period of cover the policy provided these are generally accept to be a very poor practice as there is little ‘transfer of risk’ as such FSCS will likely uphold and refund.

Although lender has security over the property this will be in the form of a second charge, as such they are not the priority debt, focus on the mortgage and council tax arrears as these will likely cause bigger issues.

Definitely speak with CAB as soon as possible, although lender may not seem interested in the financial difficulties that your relative is facing they still have various obligations they must meet and therefore act sympathetically to their needs (within reason).

Hope this helps.

Thats great advice it clarifies a lot/

Thanks very much

Hammertone

I stupidly took out a Blemain loan 15 years ago for £26k and so far have paid back £54k. The loan expires next April but they have charges amounting to £10 k now added due to some arrears way back, during hard times, and letters ,phone charges etc. Can I challenge these?

[Deleted User]

If they were not in your agreement, yes.