Do I legaly have to make repayments to a secured loan when the company is in liquida

beaniebabe

I am requiring some help and advice in respect of this situation. I have a secured loan with picture financial. A couple of months after taking out the loan I questioned the PPI as I felt it had been misold. The company refused to help. As a result of this I contacted the FOS as the PPI on the loan was misold. In early 2008 the FOS transfered the file to FSCS as Picture went into liquidation.:mad:
I like many others have been waiting for the company to be declared in default.
When the company ceased trading a "rescue" company came in and are now dealing with all repayments.
As far as I can see my contract was with Picture. I would welcome any advice on where I would stand legally if I refused to make my monthly repayment to them.
If I refused to pay what could the company do about it? also would I be in my rights to withdraw payment until the company dispute has been resolved?

sporedude

If you refused they would get a Debt Collecter, then shred your credit rating into bits.

fwor

Quite right - you can't just stop paying. The rescue company will have acquired a legal right to recover the loan as part of the rescue deal, and your contract is now with the new company. If you do stop paying, they will have a right to recover what's due to them via whatever it was secured against (your property?).

You will have to let your claim that it was mis-sold be investigated and a judgement reached. If in your favour, it will apply equally with the rescue company as with the original one, so it's just a matter of waiting.

beaniebabe

Thanks for your advice.
I guess it was worth asking the question.
Your right I will just have to hang in there and keep waiting!