Paragon Mortgages is set to receive a claim from Loancheck over a 4,000 loan to a former soldier that it claims spiralled into a 187,000 debt.The loan was taken out by Dundee-based John Brookes in 1990 at 37.8 per cent APR from Universal Credit, which was later bought by Paragon in 1998, although further advances saw the loan value rise to 10,000. Documents show that interest was frozen in 1993 after Brookes ran into financial difficulties but he claims that Paragon then backdated 34,488 of interest in 1999 after taking control of the loan. The latest statements available show the balance outstanding at 186,976 in March 2006 although Paragon insists that figure is not the debt owed and is an internal calculation although Brookes insists he is still being pursued for almost 187,000. Paragon says it offered the customer a settlement in 2003 of 17.91 a month which was payable over 12 years but Loancheck says it was not given any documents to prove that this was a settlement. Loancheck argues that the loan is not enforceable because the total cost of credit was not disclosed in the original credit agreement in 1990. Operations director Keith Kellend says: “Why did they put him under so much pressure for 16 years and mess up his quality of life?” A Paragon spokesman says: “Mr and Mrs Brooks have experienced a sustained per-iod of financial difficulties and since 1993 significantly reduced payments were accepted. These were reduced to 17.91 a month and we also agreed in 2005 that any balance above 2,149 will be written off in full.” Other Loancheck cases in the pipeline will largely be based on undisclosed commissions, failure to state the total cost of credit, incorr-ectly calculating redemption charges and lenders’ assurances that loans and further advances are regulated by the Consumer Credit Act when they are above the monetary threshold.
Former Em Financial business development director Guy Garrard has joined Rooftop Mortgages.Garrard, who becomes sales director, left packager EM in June for personal reasons and initially said he wanted an extended stay away from the market, but he has now been tempted back by Rooftop.He has previously held roles at BM Soltuions and GMAC. Garrard […]
BM Solutions has launched a light-adverse product at 5.15 per cent for borrowers with just 500 of county court judgments.
Standard Life has called for assurance from the Government that the national pension savings scheme will not become a repeat of stakeholder. Head of pensions policy John Lawson says pension personal accounts will cost around 1bn to run in the first year, factoring in admin costs and subsidising low charges. He says those in the […]
An IFA has won a stunning High Court victory over the Financial Ombudsman Service, raising serious questions over the way it calculates redress. In the Royal Courts of Justice in London last week, Mr Justice Sullivan overturned a FOS award against Garrison Investment Analysis for the alleged missale of NDF structured income products, arguing that […]
By Douglas Turnbull, Head of Chinese Equities After rallying around 150 per cent since the middle of 2014, mainland China’s ‘A Share’ market has corrected almost 35 per cent since mid-June.* Douglas Turnbull, manager of the Neptune China and Neptune Greater China Income funds, looks at the reasons behind this recent volatility… Click here to […]
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