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Jamie-Law
Jamie-Law, Solicitor
Category: Law
Satisfied Customers: 4663
Experience:  Solicitor
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On 21 March 2006 we took a secured loan of 19,988.00 from

Customer Question

On 21 March 2006 we took a secured loan of 19,988.00 from the above company.14 months later due to financial problems took us to Court and demanded £24,137.40, on the 13th June 2007, to pay it off in full. Thus acknowledging a rebate of -53,106.02, from the total of £77,240.42, they stated in their Court paper section f as total amount outstanding on repayment of the loan, at full term.
We recently asked for a Total redemption figure, and they sent us a letter demanding £35,230.24. They are not keen to take into consideration that we have so far made payments for 128 month ( of the 300 months period of the loan) already equivalent to 128x271.50 =34,752. They have always acknowledged that we were entitled to a rebate for early repayment and that is what we knew when we signed the agreement regulated by the CCA 1974. In their redemption figure letter they NOW state "Please note, there is no rebate due in accordance with the consumer Credit (early Settlement) Regulation 2004. Does it mean that they have to charge us interest plus any charges for the 172 months we will not be using their loan?
Submitted: 10 months ago.
Category: Law
Expert:  Jamie-Law replied 10 months ago.

Hello my name is ***** ***** I will help you with this.

Just to be clear, are you settling this debt early? Or are you in arrears?

Customer: replied 10 months ago.
we are settling the debt early, 172 months before the end of its term, and we are not in arrears.
Expert:  Jamie-Law replied 10 months ago.

If you settle early you are normally entitled to a rebate. You should use this calculator here:

http://www.financecalcs.co.uk/Calcs/Settlement.php

That will show what your entitlement is. If they still refuse then you can go to the Financial Ombudsman.

They will regulate this and offer a free, independent service. Their website is: www.financial-ombudsman.org.uk

That should resolve the matter for you.

Can I clarify anything for you about this today please?

Customer: replied 10 months ago.
Under what circumstances would people like us who took up this loan Regulated by the Consumer Credit Act 1974, for 300 months, now intending to settle it after 128 months, hardly half its term not be entitled to a rebate, for the 172 months left on it, as TOGETHER/BLEMAIN FINANCE are now claiming?
Expert:  Jamie-Law replied 10 months ago.

Its either regulated or it is not. As this loan was for under £25k it would be regulated by the CCA.

Does that clarify?

Customer: replied 10 months ago.
It is stated in my question that this is a Regulated Secured loan, should we therefore be entitled to a rebate when we repay it early? unfortunately your answer does not cover the crux of the question.
Expert:  Jamie-Law replied 10 months ago.

Correct. You ARE entitled under the Consumer Credit Act.

Use the calculator above to give you an idea of how much.

But the CCA does say you are entitled to a rebate.

Does that clarify for you?